China's Transoceanic railway

Question 1

Background of the China’s Transoceanic railway

Answer 1

-In 2013, China proposed a Transcoeanic Railway across Honduras

• Discussion between CCEC (China Harbour Engineering Company) and Honduran
Government.

• It would be 600km with 10 lines, and an estimated cost of US$20 billion
• Miguel Servellón, an official with the state agency promoting the project, said it was “still a long way from happening,” listing obstacles like a complex environmental approval process.

Question 2

Background on Honduras

Answer 2

In 2014 more than 33% of its population lived in poverty

• In rural areas 6/10 households live in extreme poverty
• In 2015, the country’s economy grew by 3.6 percent and is expected to grow by 3.5 percent in 2016.
• The highest level of economic inequality in Latin America.

• One of the world’s highest homicide rates (67 homicides per 100,000 inhabitants in
2014)

• Vulnerable to shocks in the agricultural sector

• Susceptible to adverse natural events such as hurricanes and droughts. World Bank
studies have highlighted the importance of improving the quality of education and
diversifying sources of rural income given that most of the country’s poor live in rural
areas and depend on agriculture for their livelihood.

Question 3

Environmental impacts of the Transoceanic Railway

Answer 3

May cut through areas of protected land such as the Parque Nacional Sierra de Agalta, a 27,000 hectare national
park which holds the largest
tracts of virgin cloud forests in
Central America with more that 400 species of bird and 61 mammal species.

Increased developments at the
south-western end of the proposed route would take place
in Refugio de Vida Silvestre Punta Izopo.

Currently fairly
inaccessible, important
mangrove habitats are home to
caimans, turtles and many bird
species.

Damage an ecologically
important area- Proposed route
cuts through cloud forests and
tropical forests

Open up forests for exploitation
Encourage logging by
decreasing transportation co

Question 4

Social impacts of the Transoceanic Railway

Answer 4

Would provide jobs in
construction

Manufacturing
Industries may
develop alongside the
railway

Disruption to
indigenous people
including the Lenca
who live in the south
western region

Could bring a flow of
migrant workers

Question 5

Economic impacts of the Transoceanic Railway

Answer 5

Facilitate trade and transport-Positive multiplier effect

Disruption to National Parks could damage tourism (e.g. popular hiking trails in Pico La Picucha and Talgua Caves)

Development could have a negative impact on growing ecotourism industry

Will reduce cost of transport of raw materials to other countries e.g. China

Question 6

Political impacts of the Transoceanic Railway

Answer 6

-Increase GDP/ reduce government debt

Allow for increased government spending elsewhere in the economy e.g. education and hospitals