Mendoza emerges as a strategic logistics hub for the Southern Cone

The province of Mendoza is emerging as a key logistics hub in the Southern Cone, thanks to its geostrategic location along South America’s main bi-oceanic corridor connecting the Atlantic and Pacific oceans via the Cristo Redentor International Pass. These conditions position Mendoza as the ideal platform for a network of logistics centers integrated with regional production systems, providing comprehensive services for trade and transportation across the Southern Hemisphere, writes Elizabeth Lopez, director at Mendoza Mining Legal Solutions…

International connectivity: A province at the core of the bi-oceanic corridor

Mendoza stands out for its strategic location and international connectivity. The natural border between Argentina and Chile includes 26 international crossings spanning 5,308 kilometres. Within this extensive network, Mendoza holds a central position, traversed by National Route 7, the backbone of the Central Bi-oceanic Corridor. This route links Argentina’s Atlantic ports with Chile’s Pacific ports, Valparaíso and San Antonio, which are key gateways to Asia-Pacific markets.

National Route 7 crosses five provinces (Buenos Aires, Santa Fe, Córdoba, San Luis, and Mendoza) and stretches over 1,224 km. The Cristo Redentor – Los Horcones Pass, located at 3,500 meters above sea level, is one of the few crossings authorized for heavy cargo transport. Although inaugurated in the 1980s, its customs infrastructure already showed limitations by the following decade, prompting the analysis of several expansion and modernization projects.

This corridor is vital for international trade: approximately 300,000 vehicles cross it each year, and it is estimated that 75% of MERCOSUR’s overland cargo moves through this pass to reach Chilean ports. Although Mendoza represents just 3.85% of Argentina’s GDP, it concentrates 11% of the country’s freight transportation fleet, reaffirming its logistical leadership.

The pass was designed to accommodate 700 to 800 trucks per day. However, current traffic has grown to 1,300–1,400 daily vehicles, with an upward trend.

A framework for commercial integration and physical infrastructure

Since 1996, the Economic Complementation Agreement No. 35 between Chile and MERCOSUR, under ALADI, has regulated economic relations between both blocs. Its objectives include the creation of a free trade area, the promotion of the free movement of goods, services and productive factors, improvements in infrastructure and bi-oceanic connectivity, and the encouragement of reciprocal investments and technological cooperation.

According to the Argentine Investment and International Trade Agency (AAICI), Chile was Argentina’s third-largest export destination in 2024, with operations totalling USD 6.323 billion, trailing only Brazil and the United States. This increase was primarily driven by oil and natural gas exports from the Vaca Muerta formation.

Cristo Redentor system: A bi-national agreement to modernise border infrastructure

In May 2018, Argentina and Chile signed an agreement to modernise the Cristo Redentor System. This binational megaproject, with a USD 750 million investment financed by the Inter-American Development Bank, aims to fully upgrade the National Route 7 International Corridor, improving road safety and minimizing closures due to adverse weather conditions.

The project includes widening the Caracoles Tunnel (from 4.5 to 13 meters) and connecting it to the Cristo Redentor Tunnel; refurbishing the latter with modern ventilation and intelligent signalling; straightening critical curves; and building additional lanes and snow-shed galleries to protect against avalanches. These improvements will enable two-way traffic with dual lanes, enhancing the safety and efficiency of the most important Andean crossing on the continent.

Logistics infrastructure: multimodal connectivity and expanding logistics zones

Mendoza’s transport infrastructure includes key national and provincial roads, rail connections to Buenos Aires, and an international airport with regular flights. In this context, the province has moved forward with customs digitalization by implementing the X-Road system, which will allow interoperability between Argentine and Chilean authorities at the Los Libertadores Pass.

Palmira Bypass: A strategic highway

With 92% of the works completed and inauguration planned for 2025, the Palmira Bypass will be the first major project of the new Cristo Redentor Corridor. This dual carriageway highway spans 38 km, linking Palmira (San Martín) with National Route 40 in Agrelo (Luján de Cuyo), easing congestion on Route 7 and separating freight traffic from private vehicles.

The bypass will boost the development of two key logistics hubs: the Pasip industrial and service park (Palmira), and the intermodal logistics node in Luján de Cuyo, which will include truck and rail terminals, a bonded customs area (dry port), warehouses, and services for freight operators.

The creation of a dry port with integrated logistics and customs services will attract companies providing mining equipment, technology, and supplies—currently located in Córdoba or Buenos Aires—thus strengthening regional value chains.

International airport and aviation

The “Gobernador Francisco Gabrielli” International Airport, known as “El Plumerillo,” connects Mendoza with national and international destinations. Plans are underway to improve its terrestrial connectivity, including the incorporation of railway services.

Human capital: professional talent driving regional logistics

Mendoza offers a highly skilled workforce in key areas such as logistics, mining, engineering, law, and international trade. The development of these logistics projects will foster employment across operational, technical, and administrative roles, creating inclusive job opportunities for women, young professionals, and local workers.

Strategic impact on mining: A natural gateway to the Pacific

Mendoza’s consolidation as a logistics hub is crucial for large-scale mining. A prime example is the PSJ Cobre Mendocino project, which plans to export 40,000 tons of fine copper annually through Chilean ports.

The logistics infrastructure offers several benefits to the mining sector, Lower transportation costs and shorter export times; Increased traceability across the value chain; Growth of local suppliers and specialized services; Promotion of interprovincial partnerships.

A tangible development axis

Mendoza is moving beyond its identity as a wine tourism destination to become a strategic player in international trade. A testament to this transformation was the recent decision by the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) to hold their first Latin American business roundtable in the province, gathering domestic and international experts and investors and reinforcing Mendoza’s role as a “financial hub” for mining development.

For all these reasons, Mendoza’s role as a logistics node in the Bi-oceanic Corridor directly influences investment decisions, extractive projects, energy transition in transportation, and the creation of skilled employment.

Customs digitalization, market diversification, and infrastructure strengthening are key factors for enhancing export competitiveness. However, broader macroeconomic variables such as exchange rate stability, foreign currency access, and bilateral agreement reviews must also be addressed.

In this context, logistics is not a supporting actor, it is a driving force of regional development.