The Politics of China’s Amazonian Railway [View all]

[Algernon Moncrieff]

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In January 2015, construction of the so-called Grand Interoceanic Canal (usually called Nicaragua Canal) has finally begun. If completed, the canal would be the largest civil-engineering and construction project in the history of mankind, spanning 276 kilometers across the Central American nation. The previously unknown businessman Wang Jing, with likely approval and support of the Chinese government, estimates the cost of the construction to reach U$ 40 billion dollars, even though experts believe the total cost will be closer to one U$ 100 billion dollars.

Compared to the Nicaragua Canal, the Trans-Pacific Railroad, set to cross South America and connect the Atlantic to the Pacific Ocean, is a bargain. The 5,300 kilometer rail connection, if ever built, is expected to cost U$10 billion dollars, even though the cost may increase once the feasibility studies have been completed. Environmental studies from the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) won’t be complete until May 2016.

In addition to comparable projects at home, China is experienced with large-scale infrastructure projects abroad. In the 1970s, it financed the Tanzam Railway, which links the port of Dar es Salaam in Tanzania with the town of Kapiri Mposhi in Zambia's Central Province. At a price of U$ 500 million dollars, the project was completed ahead of schedule, and remains one of the largest single foreign-aid project undertaken by China.

Yet contrary to China and Tanzania, Brazil and Peru are home to one of the world's most organized civil societies, and environmental NGOs have already started voicing their concern about the project's potential negative impact on the Amazon rainforest and indigenous tribes living in the region. The Trans-Amazonian highway, built in the 1970s, accelerated the destruction of the forest as it provided illegal loggers with easy access to previously isolated regions. After all, 95% of deforestation in the Amazon occurs within 5 kilometers of a road.