China, Brazil ink preliminary agreement for US$10bn railway

Chinese Premier Li Keqiang and Brazilian President Dilma Rousseff have signed a preliminary agreement for a 30bn-real (US$9.94bn) transcontinental railway that would run between Brazil and Peru's Pacific coast.

The goal is for China to support Brazil with investment and know-how in exchange for opportunities for Chinese firms to participate in railway construction tenders.

"We invite Chinese companies to participate in this large project," Rousseff said in a federal government blog post, explaining that she is looking forward to starting feasibility studies with China and Peru.

The railway would start in the state of Rio de Janeiro and run 4,400km through six Brazilian states before hitting the country's border with Peru. From there, it would connect to the port of Ilo, pictured top, in Moquegua region.

One of the railroad segment projects furthest along involves the Campinorte-Lucas do Rio Verde railroad stretch, between Goiás state and Mato Grosso state. Chinese Railway Construction Company (CRCC) is seeking partnerships with Brazilian firms.

The preliminary agreement was one of 35 contracts signed on Tuesday in capital Brasília worth more than US$53bn.

China is Brazil's top trading partner with bilateral agreements totaling about US$80bn in 2014, according to the Brazilian government.