China’s footprint in Latin America continues to expand as a Chinese state-owned construction company has secured the rights develop Chile’s largest railway project.
The deal, awarded to China Railway Construction Corporation (CRCC), includes a 38-mile freight and passenger rail line connecting Santiago and Melipilla. Chilean officials said the project, once completed, would transport up to 60 million passengers annually and reduce commute times to just 25 minutes between the two cities. It is expected to be completed within six years.
Newsweek contacted the CRCC via email for more information on the project.
Why It Matters
The $500 million railway contract, won by CRCC subsidiary China Civil Engineering Construction Corporation, marks the latest chapter in China’s Belt and Road Initiative strategy to invest in infrastructure across developing nations.
It also reflects the deepening economic relationship between China and South America, particularly as Chinese companies seek to diversify trade routes and secure access to commodities such as copper and lithium.
What To Know
The project’s contract includes the development of nine stations, a maintenance center, 12 viaducts, and seven pedestrian crossings. The dual-track line is expected to carry both commuter traffic and cargo, improving efficiency in one of Chile’s fastest-growing corridors.
CRCC won the contract to construct the Santiago-Batuco project, a 15-mile corridor that included a passenger-dedicated line between Quinta Normal Station and Batuco and upgraded freight infrastructure.
The passenger line was designed for train speeds up to 100 miles per hour, while the freight line targeted speeds of 40 miles per hour.
The project includes the construction of six new stations, five new underpasses, the elimination of all existing at-grade level crossings along the route, and six new railway bridges.
The project plans a series of environmental protections, including protective signage for rare and endangered plants in six major wetland areas, use of prefabricated piles to reduce excavation and groundwater depletion, installation of noise barriers, and restoration of temporary construction sites upon completion.
The report estimated that the completed Santiago-Batuco line would connect five cities in the region and serve about 35 million passengers annually while reducing travel time from roughly 1.5 hours to approximately 24 minutes.
Separately, China’s state-owned engineering firms are expected to help build a massive 2,800-mile cross-continental railway linking Brazil’s Atlantic coast with Peru’s Pacific port of Chancay in a project that will cost upward of $70 billion once completed.
What People Are Saying
Chinese President Xi Jinping said at a China-CELAC forum earlier this year that China was ready to “join hands” with Latin American countries “in the face of seething undercurrents of pure political and bloc confrontation and the surging tide of unilateralism and protectionism”.
Xi also announced plans to extend a $9.2 billion credit line to Latin American countries and signaled increased investment in sectors such as clean energy, 5G networks, and artificial intelligence.
What’s Next
Construction on the Santiago-Melipilla rail line is expected to begin later this year, with a targeted completion date in 2031. The project will generate an estimated 12,000 direct and indirect jobs in Chile.
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