China to take part in US$10bn Brazil-Peru railway project

China to take part in US$10bn Brazil-Peru railway project

China is preparing a preliminary agreement with Brazil and Peru for the construction of a 30bn-real (US$9.97bn) bi-national railway connecting the Atlantic Ocean in Brazil to the Pacific Ocean in Peru.

A coast-to-coast railway line, which has an estimated cost of between USD4.5 billion and $10 billion, is part of a series of cooperation projects in which the Chinese intend to invest about $53 billion in its main trading partner in Latin America and worldwide.

The trans-ocean railway will allow Brazil to export goods through the ports of the Pacific Ocean such as soybeans and iron ore, two of the main products it sells to China, reducing the costs of transportation.
Brazil, which in 2014 exported products worth over $51.9 billion to China, has soy as its main source of business, with a total of $16.6 billion in 2014, according to figures from the Ministry of Development, Industry and Foreign Trade.

Iron ore accounted for $12.3 billion, followed by oil ($3.5 billion), cellulose ($1.4 billion) and sugar ($880 million).

Today (Macau time) President Dilma Rousseff will receive the Chinese Prime Minister to sign investment agreements for agriculture, car parts, transport equipment, energy, railways, roads, airports, ports, storage and services.

After Brazil, Li Keqiang is due to visit Colombia, Peru and Chile, where he is also due to sign a number of agreements related to investment projects.

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