The Brazilian state of Pará has signed an agreement with China to carry out studies for the construction of the Pará Railroad, one of the State government’s most important infrastructure and logistics projects, at a ceremony held on Wednesday at the Chinese embassy in Brazil, Brazilian newspaper Folha do Progresso reported.
The memorandum of understanding was signed between the state government and representatives of the China Railway Tenth Engineering Group Co., Ltd. (CREC-10) and the China-Latin America Investment Fund, and from now on the two Chinese entities will receive documents to conduct the studies as well as making a decision on taking part in the public tender to select a construction company or consortium.
The state secretary for Economic Development and Mining, Adnan Demachki, said on that occasion that there are already nine companies with commitments signed to transport 27 million tons of cargo along this railway, which will cross the state from south to north over a distance of 1,312 kilometres, to connect to the North-South Railroad.
By connecting to the North-South Railroad the Para Railroad will be able to reach the port of Barcarena, located in the state of Pará, which in Brazil is the port located closest to major consumer markets in China, Europe and the United States.
The cost of this project is estimated at 14 billion reais (US$4.3 billion), which includes construction of the line as well as cargo warehouses, which when completed, will have a storage capacity of 170 million tons per year. (macauhub)