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Paraguay’s Plans for “New Panama Canal” Could Revitalize Trade in Region

News broke this week about Paraguay’s plan to turn the remote northwestern Chaco region of the country into an international transport hub and act as a link between the Atlantic and Pacific coasts of South America.

Paraguay’s Plans for “New Panama Canal” Could Revitalize Trade in Region

The government of Paraguay plans to invest over $2 billion in infrastructure to transform the region and boost trade, and more funds are currently being raised for the project. The Corredor Bioceanico will connect ports in Brazil and Chile and a revitalized highway will move north to south across the region. 

Public Works Minister Arnoldo Wiens compared the potential impact on trade in the region to that of the Panama Canal in the early 20th century. Wiens also believes the annual value of goods transported over the current Transchaco highway could more than triple to $5 billion in five years with better roads. 

How will this affect me?

DSV has a large presence across South America and will watch the news closely as these plans develop. Although a timeline was not announced for the implementation of this project, when it becomes a reality, companies moving freight across the region will see shorter lead times, lower costs, and many other benefits that will transform how trade runs through the Americas.

If you handle business between Chile, Paraguay, Brazil, and other South American countries, DSV is equipped to transport those goods now. Please find your local office and contact us today to get started. 

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