Linking Argentina and Chile

As a result of growing demand for improved transportation links in the Southern Cone Region, The Louis Berger Group (Berger) was commissioned by the IDB to undertake a U.S. Trade & Development Agency-funded pre-feasibility study for the Andean Highway Passes Program. The Andean Passes Program, involving the analysis of potential improvements to 13 existing highway connections across the Andes Mountains along the 5,200-kilometer Argentina-Chile border, is part of an ambitious effort to encourage increased economic integration between Argentina and Chile.

Berger, in conjunction with Citeco of Argentina, the International Institute of Advanced Studies and the National Highway Department of Argentina, analyzed current and future traffic movements; prepared preliminary engineering designs and cost estimates; conducted environmental impact assessments; and performed economic evaluations for improvements to the passes. Currently, there is only one fully paved highway connection linking the two capitals, Buenos Aires and Santiago. The route crosses the Andes, approximately 75 kilometers west of Santiago, via a tunnel at the 3,200-meter Cristo Redentor pass. Most cross-border traffic uses this pass despite periodic weather interruptions and frequent congestion. Of the 12 other passes, only the Cardenal Samore pass is in the process of being paved, while the remainder have either gravel or dirt surfaces, most of which must be closed during winter.

The two northern-most passes--Jama and Sico, located in an area dominated by volcanoes and mountains over 4,000-meters high--traverse the high plains of the Puna Region in northwestern Argentina, providing access for northwest Argentina, Bolivia, Paraguay and southern Brazil to the Chilean Pacific ports of Antofogasta, Mejillones and Arica. Improvements, including paving and snow protection for over 400 kilometers for the Jama pass and almost 500 kilometers for Sico, were analyzed.

The San Francisco and Pircas Negras passes, also over 4,000 meters, provide access between the provinces of Cha-aral, Copiap- and Huasco in Chile and the provinces of Catamarca and La Rioja in Argentina, a region of vast mineral resources.

The passes of Agua Negra, Cristo Redentor and Pehuenche serve the economically important central corridor and link Santiago and Buenos Aires. For the fully paved Cristo Redentor pass, the construction of 6.6 kilometers of reinforced concrete snow covers to protect against frequent snow avalanches was analyzed. To the north of Cristo Redentor, improvements to 240 kilometers of the Agua Negra pass, linking the Province of San Juan and the cities of San Juan and Cordoba in Argentina with the port of Coquimbo and city of La Serena in Chile, will provide a relatively low altitude, 2,500-meter high alternative route.

The Pehuenche pass, linking the Argentine Province of Mendoza and the cities of San Rafael and General Alvear with the Maule Region and the Chilean cities of Curic- and Talca, provides an alternative route south of Cristo Redentor with direct access to the ports of Talcahuano and Valparaiso in Chile.

The partially paved Pino Hachado Pass and the completely paved Cardenal Samore Pass serve southern corridors, linking the Province of Neuquen in Argentina with La Araucan'a and Los Lagos in Chile. The remaining four passes serve the southern "Austral" regions of Argentina and Chile, providing connections to population centers that are otherwise isolated.

In order to assess potential demand for trans-Andean traffic, The Berger Team developed a sophisticated regional freight transportation model based on sub-sectoral analysis of likely 25-year trade flows in 14 major product categories in the Southern Cone, combined with micro-level data on the specific opportunities for development and increased economic integration in the immediate border regions. The Team also developed a model for forecasting passenger traffic flow based on detailed origin-destination surveys and likely development scenarios.

The Team also devised an innovative approach to the economic evaluation framework that examines the project from each country's viewpoint. The Andean Passes Program will enable producers in the region to improve their competitiveness by creating a more reliable transportation system that eliminates lengthy delays and pass closures, thereby providing greater access to markets. Because many of the passes compete for the same potential traffic, investments were analyzed incrementally to avoid potential double-counting in determining the most attractive investment program. Additionally, the Team analyzed the distribution of benefits and costs between the two countries and various sectors and economic groups within those countries.

The Field Teams also addressed a wide range of topographical, geotechnical and climatic conditions ranging from Antarctic winds near Tierra del Fuego to desert-like conditions on the high plains near Bolivia that presented particular challenges in preparing the preliminary engineering studies. With the assistance of Landsat satellite images and a sophisticated Geographic Information System (GIS), the Team developed a spatial database for the areas surrounding each pass. Using this database, supplemented with field reconnaissance data, preliminary alignments were selected, engineering designs prepared and construction and maintenance cost estimates established for each pass. Because many of the passes traverse high altitudes with significant snowfall, designs and maintenance plans had to be developed to enable all-weather, year-round travel through those passes.

In addition, the Team assessed the potential physical, ecological and environmental impacts of the development of each pass including the dangers associated with driving at high altitudes. Berger also assessed the need to balance development and social and environmental interests and assure proper mitigation of any adverse impacts of the improvement projects.

The estimated cost of improving the passes is $500-$700 million. Improvements have been recommended at nine of the 13 passes, five in the first year of the program at a cost of $350 million--Jama, Agua Negra, Cristo Redentor, Pehuenche and Integracion Austral; and four--Pircas Negras, Pino Hachado, Huemules and San Sebastian--in the second and third years for over $160 million. The improvements will generate net economic benefits to the region of $360 million.

© 2008 The Louis Berger Group, Inc. All Rights Reserved.