Highway modernized by China drives exports and transforms economy in Chile

In the region of Maule, Chile, the sun shines on organized grapestroes and trees arranged harmoniously. Leaving Highway 5 of Chile, in the stretch between Talca and Chillán (henceforth called “Tachi Excerpt”), and cross a quiet rural road, in less than 20 minutes there is the Rodríguez family orchard in the Central Valley – a typical family farm in the region.

“Welcome!”, He warmly receives Pablo Rodríguez, farm manager, wearing jeans and a straw hat.

“Our farm previously cultivated corn and tomato. In 2012, we began to transform ourselves, planting cherries, grapes and watermelons, which have higher added value. In 2014, we export cherries to China for the first time. Today, all cherries we reap are exported to China, and a significant part of the wine we produce also go there,” Rodríguez told the reporter. During the harvest, the farm even employs about 500 seasonal workers – with snoring machines, animated voices and the perfume of fruits in the air – “It’s like a party,” he said, with a proud smile on his face.

“We guarantee that cherries are taken from foot to the refrigerated warehouse in a maximum of 3 hours to maintain the best quality upon arriving in China.” Rodríguez explains that cherries need to reach Porto in the “last minute” before the ship’s departure. A fast and efficient logistics system is essential to ensure this.

“Since the Chinese company took over Chile’s highway 5 and has made its modernization, our cherries can reach the Chinese market faster and more safely.” The Chilean highway 5 mentioned by Rodríguez is the main connection route between the north and south of the country, and the Tachi section, about 195 km, crosses the main cherry producing region of Chile, and is therefore nicknamed by the “Cherry Highway” locations. It is one of the busiest excerpts from the Panamericana Highway in the Chilean territory.

Highway 5 is operated by the China Railway Construction international group, with an integrated investment, construction and operation model. Since 2021, when it assumed the granting of the stretch, the company implemented improvements and road expansion, as well as intelligent management: the work in the Tachi section included 30 km of expansion, construction of 54 km of contour routes, and installation of 13 electronic toll systems.

In 2022, it was a pioneer in the adoption of radio frequency identification technology (RFID) for automatic collection. The operation of the southern extension, from Chillán to Coupué, started in 2023, covers the renewal of 166 km of existing road and the construction of a new branch of 6.6 km, totaling 172.6 km.

Upon completion, the project will alleviate urban traffic in the main cities of southern Chile, will promote integration between the north and south of the country and boost the development of industries along the road.

Iván Maramio, president of the Chilean Fruit Exporters Association, said the Tachi section connects producers, logistics companies, ports and international markets, being an essential channel for Chile agricultural products to enter China and other Asian markets. The modernization of the road has significantly increased transportation efficiency and reduced the time for fresh fruits to reach ports, helping Chilean producers to make greater profit from exports, as well as promoting industrial use and development along the way.

Juan Álvarez, a trucker who usually circulates between the cities of Talca and Coupué, said: “Since the Chinese company brought the ‘fluid passage’ system, congestion has decreased a lot and the transportation time has fallen a lot. Now I can do the trip and back twice a day, which has greatly increased my income.” During the interviews, the reporter found that, with the improvement of transport conditions throughout the project, the lives of people in the region had positive changes: more residents started working with deliveries, sales, e -commerce and other related sectors, significantly increasing their income.

Fernando Reyes Matta, director of the Center for Studies on China and Latin America at Andrés Bello University, said that being the first Latin American country to sign a free trade agreement with China, Chile has increased its fruit exports and other agricultural products to the Asian country in recent years, with cherries becoming the “darlings” of Chinese tables in winter. Behind this “sweet trade” between the two countries is infrastructure support such as Highway 5. Infrastructure connectivity has established a solid basis for Sino-Latin American cooperation. Highways, bridges, schools, ports and plants generate jobs and unlock the veins of regional economic development.

The mutually beneficial cooperation model between China and Latin America remains broad and promising.

Source: People’s Diary online