1. Home
  2. / Economy
  3. / China to invest R$100 billion in Brazil to build mega railroad! Railroad with more than 4 thousand kilometers could connect country to neighboring country and facilitate trade with Asians
reading time 5 min read Comments 0 comments

China to invest R$100 billion in Brazil to build mega railroad! Railroad with more than 4 thousand kilometers could connect country to neighboring country and facilitate trade with Asians

Written by Alisson Ficher
Published 18/04/2025 às 16:59
Brazil and China sign a R$100 billion megaproject to link the Atlantic to the Pacific by rail and change the future of international logistics.
Brazil and China sign a R$100 billion megaproject to link the Atlantic to the Pacific by rail and change the future of international logistics.

Brazil could become one of the world's largest logistics corridors with the construction of a transoceanic railway supported by China, which promises to transform international trade and connect the Atlantic to the Pacific with strategic tracks.

One of the greatest works of railway infrastructure of the world may be about to take shape in Brazil.

With an estimated investment of $ 100 billion, China has announced support for an ambitious project that promises connect the Atlantic to the Pacific by rail, shortening commercial distances between Brazil and Asia.

The work, known as Transoceanic Railway, seeks to transform the transportation of goods and strengthen Brazil's role in international trade.

compressor
UP TO 90% OFF
Electronics, fashion and lifestyle with unmissable discounts in May 2025
Episodes Icon Buy

The project foresees more than 4.400 kilometers of railway in Brazilian territory alone, crossing the country from the Port of Açu, on the coast of Rio de Janeiro, until connecting to Chancay Megaport, on the coast of Peru, already under construction.

The initiative, which has the support of the Brazilian, Chinese and Peruvian governments, could redefine logistics in South America, offering a new route for the flow of commodities such as soybeans, iron ore and cellulose directly to the major Asian consumer centers.

A logistics corridor between the Atlantic and the Pacific

The goal of the Transoceanic Railway is ambitious: create an efficient and modern interoceanic link, facilitating the transportation of cargo and reducing dependence on sea routes via the Panama Canal or the southern tip of the continent.

With the growth of trade between Brazil and China, which moves more than R$170 billion per year, a solution like this is strategic and urgent to meet the growing demand for infrastructure.

According to Sérgio Vidigal, Secretary of Development of Espírito Santo, the railway is essential to increase the competitiveness of Brazilian products in the global market.

"We will reduce logistics costs and transportation times, as well as expand our access to Asia. This project could redefine the way Brazil participates in world trade,” he declared.

The railway infrastructure is already in motion

Although the project sounds futuristic, some works are already in progress, especially in Goiás, one of the states that will be crossed by the railway.

We also pack any technical and economic feasibility studies have been completed, proving the importance and viability of the initiative.

More information is expected to be released in the National Railway Plan, still pending publication by the federal government.

However, the lack of an official schedule for the EF-118 section, which connects Espírito Santo to Rio de Janeiro, generates uncertainty.

According to Fernando Otávio Campos, president of the Brazilian Hotel Industry Association of the State (Abih-ES), the lack of clear deadlines could compromise the progress of the work and the return on investment.

Chinese investment and regional influence strategy

The Chinese government has shown strong interest in implementing the project since 2015., when a memorandum of understanding was signed between Brazil, China and Peru.

Although Brazil did not join the “New Silk Road” in 2024, bilateral agreements remain firm, reinforcing the commitment of both countries to the railway.

China is strategically investing in infrastructure projects around the world, seeking to strengthen commercial ties and expand its geopolitical influence.

Latin America has been one of the main targets of these investments, and Brazil, as the largest economy in the region, plays a central role in this strategy.

In addition to the railway, the Chancay Megaport in Peru represents another crucial point of the project.

Under construction by Cosco Shipping, a Chinese state-owned company, the port is expected to cost around R$20 billion.

It is expected to become the main maritime link between South America and the port of Shanghai, China.

With the capacity to operate large ships and move millions of tons per year, Chancay can revolutionize the export of Brazilian products.

Brazilian mining companies and international financing

One of the central points of the project is in the Anchieta Branch, section that will be operated by the mining company OK, the main interested party in railway logistics.

The company will be responsible for the EF-118, which will connect the Espírito Santo railway network to Rio de Janeiro, essential for the success of Transoceânica.

To make investments viable, the New Development Bank (NBD) - also known as BRICS Bank — emerges as an alternative to traditional financing.

According to Daniel Carvalho, coordinator of the International Relations and Foreign Trade courses at UVV, the conditions offered by the NDB are more favorable than those of the World Bank.

“Competitive interest rates and greater flexibility make the project more attractive to foreign investors,” he explains.

This could be decisive in attracting private initiative, which will play a central role in making the project viable.

The involvement of large economic groups and the institutional support of the Brazilian government are seen as prerequisites for the project to come to fruition in its entirety.

Logistical challenges and political obstacles

Despite the optimism, the challenges are still significant.

The construction of a transcontinental railroadl requires overcoming environmental obstacles, territorial disputes and the compatibility of interests between different Brazilian states.

We also pack any There is a lack of efficient political articulation that ensures the continuity of the project, regardless of changes in state or federal governments.

The absence of a unified long-term plan can delay essential steps and drive away potential investors.

Another sensitive point is the project's governance, which must guarantee transparency and rigorous monitoring of the resources involved.

Projects of this magnitude, when poorly managed, can become a focus of corruption and waste of public money.

Railway is a watershed for Brazil

If completed, The Transoceanic Railway could transform Brazil into one of the main logistics hubs between Latin America and Asia.

The country would gain a strategic advantage in international trade, shortening the route to the world's largest consumer markets.

Furthermore, historically isolated Brazilian regions or those with low logistical development will be able to benefit from the new infrastructure., attracting investment and generating jobs in areas that still lack economic dynamism.

However, Transoceanic's success depends on a combination of political will, consistent investments and strategic planning.

Without these elements, the project runs the risk of becoming yet another failed promise of continental integration.

Do you think Transoceanic will be able to transform Brazil into a logistics hub between Asia and Latin America? Leave your opinion in the comments!

Registration
Notify
guest
0 Comments
Older
Last Most voted
Feedbacks
View all comments

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines, stints on broadcast TV channels and over 12 online publications. Specialist in politics, jobs, economics, courses, among other topics. Professional registration: 0087134/SP. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

Share across apps
0
We would love your opinion on this subject, comment!x
()
x