Companies from Brazil and China expected to join forces for rail investment in Brazil

11 July 2014

The governments of Brazil and China next week are expected to sign a cooperation agreement for the rail sector to support companies from both countries to set up partnerships to bid for concession in Brazil, according to Brazilian financial newspaper Valor Económico.

The Brazilian newspaper added that the idea of the agreement is to allow Chinese companies, which have capital and technological knowledge of the sector, to partner Brazilian companies, which are used to working under concession systems.

The agreement is expected to be signed during a visit by China’s President Xi Jinping, to Brazil next week. He will visit Fortaleza on 15 and 16 July to take part in the meeting of the BRICS (Brazil, Russia, India, China and South Africa) group, after which he will meet with Brazil’s President Dilma Rousseff, in Brasilia.

The newspaper reported that China Railway Construction Corporation (CRCC) would seek out Brazilian partnerships to bid for the concession on the railways between Lucas do Rio Verde (Mato Grosso state) and Campinorte (Goiás state) and that China Railway Engineering Corporation (CREC) was interested in working on the project to build a railway line from Maranhão to Peru.

In all China has over 100,000 kilometres of railways, of which 11,000 kilometres operate with high-speed trains.

More than 100 Chinese businesspeople are due to travel with Xi Jinping to Brazil and consortiums are expected to be set up to bid in auctions for areas other than railways, such oil and power production. (macauhub/BR/CN)