As one of the leading entrepreneurs in Latin America, Eurnekian analyses the pillars of growth of Argentina’s future.

IPS: Corporación América is heading the consortium that is currently devel¬oping the Central Bioceanic Corridor, a mega project that rivals the Panama Canal in magnitude. As the CEO of Cor¬poración, what drove you to undertake such a venture?

Eduardo Eurnekian: It is impor¬tant to consider the physical openness of borders and its role in enhancing the achievements that mankind has attained in terms of communications. In the case of the Central Bioceanic Corridor, we took into account the strategic im¬portance of the Pacific Rim within the framework of the global economy.

This project, which has an initial investment of $3 billion, will connect the towns of Lujan de Cuyo in Argentina with Los An¬des in Chile through a railway stretching 52 kilometers across the Andean Range and at 2,300 meters above sea level.

When ready, the Corridor will enable Mercosur [the common market formed by Argentina, Brazil, Paraguay, and Uruguay] to have access to Asian markets such as China and Australia as well as to the Western Coast of both Mexico and the U.S.

This access will be achieved at a remarkably lower cost and at a lesser risk that Andean climate conditions pose. Currently, Chile and Argentina exchange
7.5 million tons of goods on a yearly basis through the terrestrial Pass of Cristo Redentor, which remains closed to traffic two months every year due to adverse weather.
The Corridor’s influence on the region’s economic and social develop¬ment will be quite significant. Regionally, it will bring huge benefits to an area that represents 70% of all economic activity in the continent. Globally, it will become a direct, safe, and energy-ef¬ficient route that will stimulate demand and consequently spur the development of markets. In the long run, this logistics and transportation system is expected to serve an initial annual demand of 20 mil¬lion tons in its first stage (2020). Progres¬sively, its full transportation capacity is estimated to reach a target of 70 million tons per year once the second railway is operative in its opencast stretch.

IPS: Biofuel production is experienc¬ing steady growth due to the fact that companies have adopted an exporting role. Argentina may have a demand for 600,000 cubic meters of biodiesel and 250,000 cubic meters of ethanol by 2010. What position is Corporación América taking in this area?

Eduardo Eurnekian: We have made a $120 million investment in the con¬struction of a state-of-the-art biodiesel plant owned by Unitec Bio in order to produce a yearly output of 240 thousand tons of biofuel. Currently this biodie¬sel is being supplied to international markets.

The consequences are already tangible as such a supply is modifying the energy matrix, thus reducing green house emissions. There is no doubt that it is worth investing as much as possible on clean energy. Not only does it rep¬resent a business opportunity but also a comparative advantage in the future. It is true that renewable energy is con¬sidered to be high risk, but it is worth waiting to reap its benefits in favor of future generations.

IPS: Argentina is regarded by most as one of the top red wine capitals in the world. In fact, the Mendoza region has become one of the hottest destina¬tions in South America for wine connois¬seurs and investors alike. However, you seem to have taken winemaking a step beyond by setting a new viticulture pole in Argentina’s southernmost province of Neuquen: the Bodega del Fin del Mundo [The Winery at the End of The World]. Why is this important to you?

Eduardo Eurnekian: My entry in the wine industry was a personal decision that has its origins in an encounter with Julio Viola, who had set up a pioneering winemaking scheme in the Neuquen Prov¬ince. Julio had already contacted world-acclaimed oenologist Michel Rolland.

Obviously, his presence in Bodega del Fin del Mundo has been decisive and we are honored to have the support of such a respected professional. The extraordinary success achieved in Neuquen has been an inspiring force that will lead us to undertake similar developments in other challenging regions of the world.