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The Honduran interoceanic train project is presented in the United States

by | Jun 8, 2024

The delegation comprised Foreign Minister Eduardo Enrique Reina, the Private Secretary of the Presidency, Héctor Zelaya, and the Honduran Ambassador to the United States, Javier Bu. Has presented the Honduran interoceanic train project to several countries. It is estimated that the project will require an investment of 20 billion dollars

A Honduran delegation visited the United States

An official delegation from the Honduran government recently conducted a tour of the United States to present the project of a Honduran interoceanic train, which seeks to connect the Pacific Ocean with the Atlantic to promote the development of Central America.

The first meeting in Washington was conducted with the Undersecretary of Economic Growth, Energy and Environment of the United States Department of State, José W Fernández.

The objective was “to advance bilateral issues with the United States and especially to discuss and present the scope and details of the interoceanic mega project that will transform the country,” said the Foreign Minister of Honduras, Eduardo Enrique Reina, who headed the delegation. He was accompanied by the private secretary of the Presidency, Héctor Zelaya, and the Honduran ambassador to the US, Javier Bu.

Fernández said he feels “deeply grateful” to the Honduran Foreign Minister for visiting and presenting the Honduran interoceanic train project.

The project “promises to be an engine of growth for Honduras and the entire Central American region. The United States greatly values its relationship with Honduras, and we look forward to finding new ways to improve our bilateral ties,” Fernández stressed on the X social network.

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The Honduran interoceanic train project is a long-term effort

According to Honduran authorities, the project, which has already been presented to other countries, will have an estimated investment of US$20 billion, and its construction will take between 10 and 15 years.

He added that the development scheme of this “megaproject will be through the creation of a transnational company.”

The National Commission for the Construction of the Interoceanic Railway (Confi), headed by Héctor Zelaya, is in charge of executing the Honduran interoceanic train project that aims to connect Puerto Castilla, in the Caribbean department of Colón with Amapala on the Isla del Tigre, Gulf of Fonseca, in the Pacific. Honduras, El Salvador, and Nicaragua share the Gulf of Fonseca.

The president of Honduras, Xiomara Castro, said in October 2023 that the Honduran interoceanic train project seeks to link the Atlantic with the Pacific. “It is a project to promote the economic and social development of the Central American region.

The Economic and Trade Benefits of the Honduran Oceanic Train Project

The Honduran Oceanic Train Project presents a transformative opportunity for the country’s economy by fostering increased international trade, job creation, foreign direct investment, and overall economic growth. This ambitious infrastructure initiative is poised to deliver significant benefits across various economic dimensions.

Increased International Trade 

The Oceanic Train Project is set to bolster Honduras’s position as a vital logistics hub in Central America. The railway will facilitate more efficient movement of goods by connecting the Atlantic and Pacific coasts. This will reduce transportation costs and transit times, making Honduran exports more competitive globally. Additionally, the project is expected to attract more maritime traffic to Honduran ports as shippers seek quicker and more cost-effective routes for their cargo. The enhanced connectivity will likely lead to increased trade volumes with neighboring countries and global markets, fostering economic integration and diversification.

Job Creation

The construction and operation of the Oceanic Train will generate substantial employment opportunities. The project is expected to create thousands of jobs in engineering, construction, and related sectors during construction. This employment surge will reduce unemployment rates and stimulate local economies through increased demand for goods and services. Once operational, the railway will require a maintenance, operations, and administration workforce, providing long-term job stability for many Hondurans.

Foreign Direct Investment resulting from  the Honduran interoceanic train project

The scale and scope of the Oceanic Train Project are likely to attract significant foreign direct investment (FDI). International investors and multinational corporations may view the project as an opportunity to establish a foothold in a growing and strategically positioned market. FDI inflows can bring in capital, technology, and expertise, which are crucial for the successful completion and operation of the railway. Moreover, the presence of foreign investors can enhance the country’s business environment and boost investor confidence, encouraging further investments in various sectors of the economy.

Economic Growth and GDP Enhancement

The cumulative impact of increased trade, job creation, and foreign investment will contribute to the overall economic growth of Honduras. The Oceanic Train Project is expected to enhance productivity by improving infrastructure, a critical component for sustainable economic development. The project’s multiplier effects will extend to various sectors, including manufacturing, agriculture, and services, leading to higher GDP growth rates. Enhanced trade routes and reduced transportation costs will also lower the price of goods, increase disposable income and consumer spending, and further drive economic growth.

Conclusion

The Honduran interoceanic train project, presented by a delegation including Foreign Minister Eduardo Enrique Reina and other key officials, aims to connect the Pacific and Atlantic Oceans to boost Central America’s economic development. With an estimated investment of $20 billion and a construction timeline of 10 to 15 years, the project promises to transform Honduras into a crucial logistics hub, enhancing international trade, job creation, and foreign direct investment. The initiative, spearheaded by the National Commission for the Construction of the Interoceanic Railway, is expected to generate significant economic growth by improving infrastructure, reducing transportation costs, and fostering regional economic integration.

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