Chinese company negotiating contracts with Brazil

10 August 2016

China Railway No 10 Engineering Group Co Ltd, a subsidiary of the China Railway Engineering Corporation group, is negotiating the construction of two infrastructure projects worth US$2.6 billion in Brazil, said the company’s deputy director-general, Cui Jun.

One of the projects involves building a complex associating a port and railway line to a mine in eastern Bahia state, while the second concerns modernising the western railway line.

The estimated costs of the two projects are respectively US$2 billion and US$600 million, indicated Cui Jun, cited by the China Daily.

Cui told the newspaper that the company’s administration had chosen Brazil as a long-term priority market with a view to optimising its business in Latin America.

The company based in Jinan, Shandong Province, signed a memorandum of understanding with the Bahia state government and the China/Latin America Fund to build the complex. It also sent a technical team to carry out the respective economic feasibility study.

The project to modernise the western railway is still being negotiated with Companhia Nacional de Caminhos-de-Ferro do Brasil, although the respectively feasibility study has already begun. (Macauhub/BR/CN)