African Entrepreneurship Record

Chapter 1357: Chapter 359: Magellan Strait (2)

Reini said, ”Over the years, our trade volume with Chile has steadily increased. The cultural, talent, and trade exchanges between the two countries have become more frequent. However, while Chile is primarily located along the Pacific Ocean, East Africa is situated on the Atlantic Ocean, which adversely affects exchanges between the two countries.”

”The Magellan Strait is the only direct passage connecting our two countries. To exaggerate a bit, the Magellan Strait is the lifeline of trade between our countries, so developing, constructing, and maintaining the Magellan Strait passage holds great significance for both our nations.”

Chile is located on the western side of South America and is a Pacific nation. Besides being separated by the Atlantic Ocean, it is also separated from East Africa by Argentina. Thus, theoretically, exchanges between East Africa and Chile cannot bypass Argentina.

However, in reality, exchanges between East Africa and Chile do not need to be transshipped through Argentina, and this is all due to the Magellan Strait route completely controlled by Chile.

The Magellan Strait Route lies between the southern territories of Chile and Argentina, but the Magellan Strait and the lands along the strait are completely in Chile’s hands.

The Magellan Strait is a crucial maritime passage connecting the Atlantic and Pacific Oceans. This means Chile controls the maritime route to the Atlantic, so despite being a Pacific nation, Chile’s communications with Atlantic countries are not hindered by Argentina.

The relationship between Argentina and Chile has always been poor, especially concerning the territorial issue of Tierra del Fuego, where constant conflicts occur. The southern shore of the Magellan Strait is Tierra del Fuego.

Last century, Argentina and Chile fought over the sovereignty of Tierra del Fuego. Ultimately, Chile gained the upper hand, thus occupying two-thirds of Tierra del Fuego’s land, allowing Chile to access the eastern outlet of the Magellan Strait without obstacles.

Before World War I, the Magellan Strait was the most crucial sea passage along the east and west coasts of America. Whether ships from North America or South America wanted to travel from the Atlantic to the Pacific, or vice versa, they had to detour through the Magellan Strait.

However, this situation persisted only until 1914. After the Panama Canal opened, the Magellan Strait, once the only sea passage across the Americas, rapidly declined.

This undoubtedly dealt a blow to Chile’s economy, particularly severely impacting the only city along the Magellan Strait—Punta Arenas.

Punta Arenas is located in the middle of the Magellan Strait and was established in 1843, initially primarily to refuel coal to passing ships. Later, because the Chilean government continued to exile criminals to the area, it gradually developed into a somewhat larger settlement.

Punta Arenas truly developed due to gold mining and wool. By the 1890s, Punta Arenas had already become an important wool processing center.

But the good times for Punta Arenas ended in 1914 when the Panama Canal, led by the Americans, was officially completed, significantly diminishing the status of the Magellan Strait.

This impact even exceeded the Suez Canal’s impact on the Cape of Good Hope because the Magellan Strait’s location in South America was already considered remote, and even more so at the southern tip of South America.

Even though the Magellan Strait was the only maritime passage across the Americas for a considerable time, the number of ships passing through was not many.

Even at its peak, it was far less trafficked compared to the contemporary Cape of Good Hope; we must remember that during its most prosperous time, the Suez Canal was already open, and the status of the Cape of Good Hope plummeted.

The reasons for this situation are manifold. The rise of railroads completely changed the primary transportation pattern across the Americas. The most typical examples are the establishment of railroads connecting the Pacific and Atlantic Oceans by the United States and Canada.

Therefore, even without the Panama Canal, the status of the Magellan Strait was not irreplaceable.

The South American economy was almost a backward region compared to North America, and the trade volume between its coasts was almost negligible.

Besides economic issues, the natural conditions of the Magellan Strait were quite worrying. Its high latitude, cold climate, location in the West Wind Zone, strong winds, high waves, and many ice floes, coupled with its 500-kilometer length and complex coastal terrain, all combine to make it one of the least-frequented major maritime passages worldwide.

Just take the Cape of Good Hope, which is considered dangerous due to frequent storms, but compared to the Magellan Strait, it’s a minor issue.

The latitude of the Cape of Good Hope is about 34 degrees south, while the Magellan Strait is over 50 degrees south, giving it a more harsh climate. Furthermore, the waters around the Cape of Good Hope are relatively broad, while the Magellan Strait is narrow and its passage length is even a point of criticism. With a distance of 500 kilometers and complex terrain, even the most experienced sailors need courage to navigate it safely.

Therefore, the opening of the Panama Canal, according to historical development, almost sentenced the Magellan Strait to death.

This is also the main reason why the Chilean government is actively cooperating with East Africa to reopen the Magellan Strait.

Chilean Foreign Minister Rigaldo said to Reini, ”Indeed, the opening of the Panama Canal has almost paralyzed the Magellan Strait route, so our country pays particular attention to your country’s proposal regarding the Magellan Strait and is willing to actively cooperate with your planning.”