Report 35: Analysis of Conflicts, Routes, and Maritime Operations

As if the world didn't have enough conflicts, Argentina, or to be precise, a high-ranking officer of its armed forces, simply decided to raise alarms and create discord with Chile by asserting that the Magellan region was its country's "sovereignty," which immediately caused discomfort among Chilean authorities regarding statements made on the program "La Fábrica Podcast."

"The other very important thing we have, as you said, Magellan, the south, the Drake, all that is sovereignty, we must maintain it there, we must have a presence because that is a bioceanic key, Atlantic-Pacific," said Brigadier General Gustavo Valverde, Chief of the General Staff of the Argentine Air Force.

The officer's thinking adds to other harmful controversies regarding Chilean sovereignty on the part of Argentina, such as decree 457/2021 signed by the former Argentine president, Alberto Fernández, where it was indicated that the area is a "shared space," contravening the Boundary Treaties of 1881 and 1984. The border, in what was considered an "error," was also violated with the installation of solar panels for a surveillance post in Tierra del Fuego, among a series of other situations that maintain tension between these two countries given the revisionist stance of the Argentine counterpart on international delimitation.

Beyond diplomatic matters and subsequent customary apologies, the Strait of Magellan and the Drake Passage, despite having lost commercial vigor with the opening of the Panama Canal, remain crucial and strategic for Chile as they are, precisely, an alternative in the event of droughts, incidents, or congestion on the Central American route. Likewise, these crossings are - as Valverde said - "a bioceanic key" and projection points to Antarctica.

Given this, the question is whether Chile - which, although it has greater military and naval power - could deter third-party intrusions or defend its interests, especially in times of economic scarcity, understanding the cost of renewing material and deploying personnel for guardianship and surveillance. For now, at least, specialists rule out that, in the southernmost part of the world, an Argentine force could establish a blockade or try to charge some type of fee or toll to access the Strait of Magellan, as occurred in the Red Sea due to the action of Houthi terrorists or as is currently happening in the Strait of Hormuz, which remains restricted due to the war between the United States and Iran.

The Magellan area, in that sense, is sensitive because, not being a main route, it is not irrelevant if it is considered that, in the future, it will see an increase in vessel traffic not only due to the construction of new clean energy generation projects, but also due to the production of these new fuels that will be produced in that Chilean territory.

The Strait of Magellan area is strategic, for the reasons mentioned above, but it is also a fundamental connectivity area for those who live on both the Chilean and Argentine sides of the Island of Tierra del Fuego.

To maritime traffic, a new submarine alternative could be added in terms of road connection if a tunnel could be built. At least, that is the idea of the Regional Government of Magallanes and Chilean Antarctica, an entity that requested a study from the Pontificia Universidad Católica de Chile on the possibility of developing such an infrastructure. This route would be about five kilometers long.

"We want to analyze a connectivity solution. This solution, in principle, consists of determining if we can build a tunnel under the Strait of Magellan. It would be three kilometers, plus approximately an additional kilometer at each end," explained Jorge Flies, regional governor of Magallanes and Chilean Antarctica.

According to the regional authority, the need for greater certainty about connectivity between Tierra del Fuego and the continent is one of the challenges identified for the region. The territorial conditions and, particularly, the strong winds in the area make it necessary to analyze infrastructure alternatives other than a bridge.

The first step will be to develop a conceptual level study that, based on available information, will allow evaluating whether the project can advance to later stages.

Despite the resentments and controversies over the Strait of Magellan, President José Antonio Kast, who traveled to the area amid the controversy to supervise military exercises, reaffirmed Chilean sovereignty in the area. In a parallel track, the highest Chilean authority, who will meet with his counterpart Javier Milei - within the framework of the Madrid Forum to be held on September 3 and 4 in Casapiedra - Las Condes commune, referred to "Argentine friends" in relation to the need to increase commercial relations and promote bioceanic corridors.

"We need more investments like these and that requires a vision of the future where we invite more people to invest. What will happen when our Argentine friends want to take their products to Asia? They have to pass through Chile and we will need more trains and more ports," he indicated.

In the same vein, Kast spoke about the Capricorn Bioceanic Corridor, indicating that "What will happen when the Bioceanic Corridor is inaugurated? It comes from Brazil and will pass through Bolivia and Paraguay; and Uruguayans are attentive, everyone is attentive. Chile has a privilege that other countries do not have, as it is an open window to Asia Pacific and a stable country with functioning institutions."

Previously, during the commemoration of Truck Driver's Day in the city of Valparaíso, Kast referred to joint initiatives between Chile and Argentina, highlighting the need to continue increasing cooperation between both nations, such as the improvement of the route in the Los Libertadores Pass and the development of the Capricorn Bioceanic Corridor.

"Chile can do much more, we have all the conditions given. Yes, we have an infrastructure problem, it is evident, more than 30 days the Los Libertadores Pass was cut off. When something like that happens, unity between two nations is fundamental and that unity will continue to increase, there we have the bioceanic corridor in the Antofagasta and Iquique area. If Argentina does well, Chile does well," he indicated.

"Argentina saves about 15 days of transport and we do it by truck. Those trucks will use our ports, that's why there has to be an investment and a vision for the future, so we have good news ahead," the President concluded.

Mine clearance in the Strait of Hormuz "is not enough on its own" to restore normality in commercial maritime transport, warned the International Association of Independent Tanker Owners (Intertanko), even though the tanker owners' association celebrated the mine removal by the United States military.

Intertanko noted that clearing the Strait of Hormuz Traffic Separation Scheme (TSS) removes a serious danger that has loomed over the sector for months. However, this does not necessarily mean that vessels can safely return to the traditional route.

Iran has not commented on the US announcement and continues to insist that vessels only use the northern corridor through Iranian waters. Therefore, Intertanko indicated that "it cannot be assumed that vessels using the TSS can transit without interference."

Commander of the United States Central Command (Centcom), Admiral Brad Cooper, announced last week that US forces had removed mines from the TSS using Navy divers.

"These are the historical lanes that international shipping has used to transit the Strait of Hormuz. For the past several months, our forces have meticulously and discreetly cleared them of naval mines," Cooper stated.

In parallel, attacks on the few vessels transiting the area continue.

Two supertankers, loaded with Saudi crude, were hit by unknown projectiles within minutes of each other while transiting outbound through the Strait of Hormuz. This occurred late on Monday, August 31, according to maritime tracking and intelligence companies Marisks and Kpler.

"The almost simultaneous incidents represent a further escalation in the threat environment within the Omani corridor," Marisks noted.

Each of the tankers loaded 2 million barrels of Saudi crude at the Juaymah terminal last week, Kpler data showed.

Two Trump administration officials told Reuters that the state-owned Chinese shipping giant Cosco Shipping would use hidden equipment aboard its vessels to spy on military communications near the coasts of target nations, including the United States.

The informants, who spoke on condition of anonymity to discuss the US assessment of the Asian country's program, stated that Cosco Shipping maintains a decades-long intelligence gathering alliance with Beijing.

In line with this, the agreement allows China to intercept communication signals from ships and aircraft operating in Europe, North America, and Asia.

The advanced equipment on board the vessels aims to enable China to gather information on "military communication technologies and developments in encryption," one of the officials said.

United States President Donald Trump announced an unprecedented initiative by the United States to take control of one-fifth of Venezuela's vast oil reserves.

It is contemplated that US companies will be able to reactivate the battered energy industry of the OPEC member country, while providing a new source of crude oil that helps reduce fuel prices in the North American nation.

It should be noted that Trump offered few details about the agreement, only pointing out that the United States had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through an alliance with the private sector.

The new pact would represent a dramatic expansion of the United States' role in Venezuela's oil industry, as the Trump administration seeks to reactivate the country's production and secure more crude for US refineries.

The announcement came after weeks of negotiations between the United States and Venezuela on an agreement that would grant US companies long-term access to a group of Venezuelan oil fields and guarantee the supply of the resulting crude to the United States.

In this regard, Venezuelan officials are preparing to sign agreements next week that will grant new oil exploration and production rights to several companies, particularly US firms.

Venezuela nationalized its oil industry in the 1970s, placing the state-owned PDVSA at its center. Under the mandate of then-president and dictator Hugo Chávez, the government tightened control, forcing foreign producers to integrate into state-led joint ventures and subsequently expropriating assets, including projects operated by ExxonMobil and ConocoPhillips.

Under the dictatorial government of Nicolás Maduro, Chávez's successor, Venezuela's production fell drastically. It should be remembered that the South American country, despite the capture of the former president, remains subject to the arbitrary rule of a de facto government, which is headed by Delcy Rodríguez, who remains as "acting president."

The National Port Authority (APN) held a strategic meeting with senior executives from Cosco Shipping Corporation Limited (Shanghai), Cosco Shipping Ports Limited (Hong Kong), and Cosco Shipping Ports Chancay Perú (CSPCP). The meeting sought to articulate the development of the Chancay Port Terminal.

In this regard, the entity attached to the Ministry of Transport and Communications (MTC) reported that the meeting "allowed addressing issues related to the development and operation of the Chancay Multipurpose Port Terminal, as a key infrastructure for the country's port and economic development."

"The operation of the Chancay Multipurpose Port Terminal strengthens the country's direct connection with the main Asian markets, increasing the capacity of our foreign trade, boosting investment and regional integration, consolidating itself as a strategic point between South America and international markets," it added.

In June, the Port of Chancay registered a total of 488,831 metric tons (MT) of cargo mobilized, representing a contraction of 1.18% compared to the 494,689 MT processed during May, according to APN data.

Buenaventura Container Terminal (TCBuen) reported that it is gradually advancing in the reactivation of its operations, once safety validations have been carried out on the infrastructure and equipment of the facility. The port facility's operations were disrupted after a strong earthquake occurred on August 10, 2026.

According to TCBuen, vessel attention continues, and the modules have the required conditions for the attention and withdrawal of import containers, continuing with the progressive expansion of the operation.

Likewise, the reception of containers for export operations remains enabled, under the available appointment offer. Regarding warehouse work, coffee, sugar, and loose cargo operations are enabled; and physical inspection attention remains enabled.

Regarding the return of empty containers, TCBuen indicated that the reception of these units at the terminal remains enabled. "Taking into account the high volume of import containers we are receiving and the current pace of cargo withdrawal, adjustments in the appointment offer for the return of empty containers could occur in the coming days," the company stated.

Mediterranean Shipping Company (MSC) announced that it will resume some maritime service transits through the Suez Canal.

The shipping company stated that "following a thorough review of the latest security and operational conditions in the Red Sea region, MSC has decided to partially reinstate Suez Canal transits on a limited number of its east-west services."

According to the details provided by the shipping company, the change will apply to both westbound and eastbound voyages.

This resumption includes the Asia – Mediterranean routes of the Jade service eastbound, Asia – North Europe of the Albatros service eastbound, India – Mediterranean of the Himalaya service westbound, Asia – Mediterranean with the Tiger service westbound, and Asia – Mediterranean with the Tiger service eastbound.

"Individual booking confirmations and online itineraries will be progressively updated to reflect the new travel plans. The transition will be implemented service by service. MSC will continue to closely monitor developments in the situation throughout the region, in coordination with relevant authorities and security partners," the company indicated.

AP Moller-Maersk selected British Anemoi Marine Technologies to supply its Rotor Sail wind propulsion system for installation on an 8,700 TEU Maersk Lima class vessel.

This test will mark the first application of this technology on a container ship, a system already deployed in other maritime segments, such as bulk carriers.

Under this agreement, Anemoi will design, manufacture, and deliver a fixed rotor sail five meters in diameter and 35 meters high for installation on the vessel.

The system will be integrated with existing ones on board, providing assistance throughout the engineering and installation process. The rotor sail will be installed in mid-2027 and tested during the regular operation of the vessel, which is expected to consist of voyages across the North and South Atlantic.