Brazil eyes railroad to Chancay to facilitate trade with China

Xi Jinping supports this project as part of China’s trade expansion in the region

Brazilian and Chinese authorities are evaluating the construction of a railroad to the Chancay mega-port in Peru through Acre, near Bolivia, to Bahia on the Atlantic coast, which would reduce the maritime trade distance to Asia by approximately 10,000 kilometers while easing reliance on the congested port of Santos, Planning Minister Simone Tebet explained.

 In an interview with Carta Capital magazine, she also pointed out that China’s approach would respect environmental reserves in Amazonia and indigenous lands after Brazil rejected a shorter, ecologically sensitive route. Tebet also highlighted that Beijing “understood” Brazil’s objections.

The railway aims to boost exports like soybeans and minerals, enhancing Brazil-China trade, valued at over US$ 160 billion in 2023.

Brazilian President Luiz Inácio Lula da Silva is expected to discuss this initiative during his upcoming state visit to Beijing, starting Sunday. The Workers’ Party (PT) leader will participate in a ministerial meeting of the Community of Latin American and Caribbean States (Celac) and China, ahead of the group’s summit in Colombia later this year. Lula will travel to Beijing from Russia, where he attended celebrations of the 80th anniversary of World War II.

China is Brazil’s largest trading partner and a major importer of agricultural and mineral products. However, some Brazilian exports, such as soybeans, iron ore, and beef, heavily depend on Santos, on the São Paulo coast, which handles about one-third of the country’s shippings abroad.

The “Brazil Chancay railroad” would require an investment of nearly US$ 1.3 billion, representing one of Beijing’s largest disbursements in Latin America. Chinese President Xi Jinping, who participated in the inauguration of the Chancay port last November, supports this project as part of China’s trade expansion strategy in the region.