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Poor transportation infrastructure hampers South America

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Evelyn McClafferty
July 15, 2025

In Latin America, only 23% of the roads are paved and it's home to one of the least extensive rail networks in the world. Rising logistics costs make the region less uncompetitive and reduce growth.

Latin America's transport and trade infrastructure faces significant challenges due to underinvestment, with only 23% of roads paved and railways largely underdeveloped. This lack of infrastructure investment has ripple effects on the economy, leading to high logistics costs that hinder trade and growth. The region's unique geography and biodiversity add complexity to infrastructure development, making it crucial to balance economic growth with environmental preservation.

China has become a major investor in Latin American infrastructure, particularly through its Belt and Road initiative, aiming to secure raw materials and strengthen economic ties. However, this development often comes at the cost of environmental degradation, such as deforestation linked to new roads. Additionally, illegal economies, including gold mining and drug trafficking, exploit regional infrastructure, further threatening biodiversity. Addressing these issues requires a comprehensive, multi-year infrastructure strategy and significant investment to ensure sustainable development.

 

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.

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