Bolivia's Maritime History: Access To The Sea

Bolivia is a landlocked country in South America that lost its coastline to Chile after the 19th-century War of the Pacific. Despite this, Bolivia has not been deterred from engaging in maritime trade. The country has direct shipping connections with other countries and has been developing logistical alternatives to reduce its dependence on Chilean ports, such as increasing trade through Peruvian ports and utilising the Paraguay-Paraná waterway, which connects to the Atlantic Ocean via the Río de la Plata. Bolivia's ports play a crucial role in its import and export trade, contributing significantly to its economic development.

Bolivia lost its coastline to Chile after the 19th-century War of the Pacific

The direct cause of the conflict was a dispute over nitrate taxation between Bolivia and Chile. In 1878, Bolivia increased taxes on the Chilean mining company Compañía de Salitres y Ferrocarril de Antofagasta (CSFA), violating the Boundary Treaty of 1874, which prohibited tax increases for mining. When Bolivia rescinded the company's license, seized its assets, and put them up for auction, Chile responded by occupying the Bolivian port city of Antofagasta on February 14, 1879. War was soon declared between the two countries, with Peru joining the conflict as an ally of Bolivia.

Chile quickly gained the upper hand, occupying the Bolivian coastal region (Antofagasta province) and achieving naval victories at Iquique and Angamos, which gave them control of the sea approaches to Peru. A Chilean army then invaded Peru, and despite U.S. mediation attempts, Chilean forces occupied the Peruvian capital of Lima in January 1881. Peruvian resistance continued for several more years, but ultimately, the war concluded with Chilean victory and significant territorial gains.

The Treaty of Ancón, signed on October 20, 1883, ceded the Peruvian province of Tarapacá to Chile. Additionally, Chile was to occupy and administer the provinces of Tacna and Arica for 10 years, after which a plebiscite would determine their final sovereignty. However, the two countries could not agree on the terms of the plebiscite for decades, and it was only in 1929, through U.S. mediation, that an accord was reached—Chile retained Arica, while Peru reacquired Tacna and received an indemnity and other concessions.

Bolivia, meanwhile, signed a truce with Chile in 1884, giving Chile control of the entire Bolivian coast, including the valuable nitrate, copper, and other mineral industries. This arrangement was made permanent with the Treaty of Peace and Friendship in 1904. In return, Chile agreed to build a railroad connecting the Bolivian capital of La Paz with the port of Arica and guaranteed freedom of transit for Bolivian commerce through Chilean territory.

Bolivia's river ports offer alternative routes to the sea

Bolivia is a landlocked country in South America that lost its coastline to Chile after the 19th-century War of the Pacific. As a result, Chilean ports have traditionally been the gateway for maritime goods to and from Bolivia. However, Bolivia has been actively seeking alternative routes to the sea to reduce its dependence on Chilean ports.

On October 30, the Bolivian government awarded international classification to Central Aguirre, Gravetal, and Jennefer—three river ports on the Paraguay-Paraná waterway. This waterway connects Bolivia with Argentina, Brazil, Paraguay, Uruguay, and the Atlantic Ocean, providing an alternative route to the sea. Port Jennefer, located on the Tamengo Canal, is helping Bolivian businesses cut trade costs and save time by offering a more direct route for goods instead of hauling them across the Andean Mountains to reach Chilean ports on the Pacific.

The Paraguayan-Paraná waterway is expected to reduce freight costs by around 18% to 20% and freight time by up to 30%. This development is part of Bolivia's effort to explore logistical alternatives, including increasing trade through Peruvian ports and utilising the Paraguay-Paraná waterway. The country has also been developing commercial docks along the waterway, such as Aguirre, Gravetal, Jennefer, and Puerto Buch, to enhance its trade capabilities.

The Paraguayan-Paraná waterway and the exploration of alternative routes are significant steps towards bolstering Bolivia's economy and international competitiveness. By reducing transit costs and improving logistics, Bolivia can overcome the challenges posed by its landlocked position and promote the development of the entire country. These efforts demonstrate Bolivia's proactive approach to enhancing its trade infrastructure and exploring new avenues for economic growth.

Bolivia is developing logistical alternatives to reduce its dependence on Chilean ports

Bolivia is a landlocked country in South America that lost its coastline to Chile after the 19th-century War of the Pacific. Chilean ports have traditionally been the gateway for maritime trade to and from Bolivia, as per a 1904 treaty that ratified the borders between the two countries. However, Bolivia is actively working to reduce its dependence on Chilean ports by developing logistical alternatives.

One alternative is the increased utilisation of the Paraguay-Paraná waterway, which provides access to the Atlantic Ocean and connects Bolivia with Argentina, Brazil, Paraguay, and Uruguay. In October 2024, the Bolivian government awarded international classification to three river ports on this waterway: Central Aguirre, Gravetal, and Port Jennefer. This new status allows Bolivian businesses to transport goods through the waterway, reducing their reliance on Chilean ports. Port Jennefer's manager, Bismark Rosales, estimates a reduction in freight costs of around 18-20% and a time savings of up to 30% compared to transporting goods over land through the Andean Mountains to Chilean ports.

In addition to the waterway option, Bolivia is also exploring alternative trade routes through Peru. This shift is facilitated by the improved diplomatic relations between Bolivia and Peru and the rise in tariffs at the Chilean port of Arica, which is the main port for Bolivian trade. Bolivia has been promoting greater trade through Peruvian ports, particularly the port of Ilo on Peru's southern Pacific coast. In 2018, Bolivia was granted a 99-year lease on about 1.4 square miles of port facilities at Ilo, enhancing its ability to process goods through this port.

The Bolivian government has also established a public-private partnership to develop the docks providing access to the Paraguay-Paraná waterway. This development includes the commercial docks of Aguirre, Gravetal, Jennefer, and Puerto Buch. By investing in these alternatives, Bolivia aims to reduce its dependence on Chilean ports and improve its competitiveness in the international market.

Bolivia has free port privileges in the maritime ports of Argentina, Brazil, and Chile

Bolivia is a landlocked country in South America. It lost its coastline to Chile following the 19th-century War of the Pacific. As a result, Bolivia has been dependent on Chilean ports for maritime trade. However, in recent years, Bolivia has been actively seeking to reduce this dependence by developing alternative routes through Peru and the Paraguay-Paraná waterway, which provides access to the Atlantic Ocean via the Río de la Plata.

In 2018, Bolivia exported a total of 5,140,467 tonnes of goods, excluding hydrocarbons. Of this, 74.4% flowed through Chilean ports, while 7.4% went through Peruvian ports. The remaining goods were shipped through the Atlantic route. The following year, the volume of exports through Chilean ports decreased to 66.7%, while exports through Peruvian ports increased to 10.8%.

The increase in traffic through Peruvian ports and the greater utilisation of the Paraguay-Paraná waterway have widened Bolivia's options for trade. In October 2020, the International Court of Justice ruled that Chile was not legally obligated to provide Bolivia with sovereign access to the Pacific Ocean. This ruling further incentivised Bolivia to explore alternative routes and promote trade through Peruvian ports.

Bolivia has been granted free port privileges in the maritime ports of Argentina, Brazil, and Chile. Additionally, in 2010, Peru granted Bolivia port facilities and a free-trade zone at the Port of Ilo on a 99-year lease. This agreement strengthens bilateral relations between the two countries and provides Bolivia with additional options for maritime trade.

The Paraguayan-Paraná waterway and the alternative routes through Peru offer significant opportunities for Bolivian businesses to reduce trade costs and improve their competitiveness in the international market. These developments are crucial for the economic development of Bolivia and its integration into global trade networks.

Bolivia's ports play an important role in the country's export and import trade

Bolivia, a landlocked country in South America, does not have direct access to the sea and therefore does not have any seaports of its own. However, its ports still play a crucial role in the country's export and import trade. Bolivia has been heavily dependent on Chilean ports for maritime trade, with the 1904 Treaty of Peace and Friendship outlining the use of Chilean ports for Bolivian trade. However, in recent years, Bolivia has been actively working to reduce this dependence by exploring alternative routes and developing its river ports.

Historically, Chilean ports have served as the primary gateway for Bolivia's maritime trade. The ports of Arica and Antofagasta in northern Chile have been the usual entry and exit points for goods to and from Bolivia. This arrangement is rooted in the 1904 treaty, which stipulated that Chile would compensate Bolivia for its loss of access to the sea following the War of the Pacific (1879-1884). As per the treaty, Chile agreed to provide Bolivia with free transit through its territory, duty-free access, and the right to establish its customs agencies in the ports of Arica and Antofagasta.

However, in recent times, political friction between the two countries has prompted Bolivia to seek alternative routes for its trade. In October 2018, the International Court of Justice ruled that Chile was not obligated to negotiate sovereign access to the Pacific Ocean for Bolivia, further straining relations. This led to a growing interest in promoting trade through Peruvian ports, facilitated by the rise in tariffs at the Chilean port of Arica. Additionally, the ideological alignment between the governments of Bolivia and Peru strengthened the desire to explore alternative routes, particularly the Peruvian port of Ilo.

To reduce its reliance on Chilean ports, Bolivia has been developing logistical alternatives. This includes increasing the use of the Paraguay-Paraná waterway, which provides access to the Atlantic Ocean via the Río de la Plata. In 2018, Bolivia was granted port facilities at the Port of Ilo in Peru, further diversifying its trade routes. Additionally, Bolivia has been investing in the development of river ports, such as Central Aguirre, Gravetal, and Jennefer, located on the Paraguay-Paraná waterway. These river ports offer a more direct and cost-effective route for Bolivian businesses, reducing freight costs and transit times.

The diversification of trade routes and the development of river ports are significant steps towards strengthening Bolivia's economy and international competitiveness. By reducing the dependence on Chilean ports, Bolivia gains more control over its trade and can potentially negotiate better terms for its export and import activities. The river ports, in particular, play a crucial role in lowering freight costs and improving the overall efficiency of the country's trade logistics. As a result, Bolivia's ports, both on inland waterways and along its coastal neighbours, continue to be vital for the country's economic development and its integration into the global market.

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