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Flashcards in China's Transoceanic railway Deck (6)
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Background of the China's Transoceanic railway

-In 2013, China proposed a Transcoeanic Railway across Honduras

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

• 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.


Background on Honduras

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

• 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.


Environmental impacts of the Transoceanic Railway

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

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


Social impacts of the Transoceanic Railway

Would provide jobs in

Industries may
develop alongside the

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

Could bring a flow of
migrant workers


Economic impacts of the Transoceanic Railway

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


Political impacts of the Transoceanic Railway

-Increase GDP/ reduce government debt

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