China to take part in construction of trans-ocean railway

19 May 2015

The Chinese Prime Minister Li Keqiang, is expected to announce Tuesday in Brasilia Chinese participation in construction of the trans-ocean railway line linking the north-south line in Brazil to the Pacific coast in Peru, the Brazilian press reported.

This project, which has an estimated cost of between US$4.5 billion and US$10 billion, is part of a series of cooperation projects in which the Chinese intend to invest about US$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 US$51.9 billion to China, has soy as its main source of business, with a total of US$16.6 billion in 2014, according to figures from the Ministry of Development, Industry and Foreign Trade.

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

On Tuesday, 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. (macauhub/BR/NC)