The highway runs south for about 1,240 kilometers (770 mi) from Puerto Montt to Villa O'Higgins, passing through rural Patagonia.

[2] Construction of the highway was commenced in 1976[citation needed] under the military dictatorship era in order to connect a number of remote communities.

Carretera Austral has a strategic meaning due to the difficult access by land to a significant portion of Chile's southern territory.

Access by sea and air is also a complex task due to extreme winter weather conditions.

This means constructing a 935-kilometre (581 mi) branch Rio Bravo-Ventisquero Montt-Puerto Natales, with 9 ferry crossings planned.