Want... The ambitious transcontinental railroad project being considered by China and Brazil along with Peru is a win for all involved, says Brazil's ambassador to China, Jose Alfredo Graca Lima. As China's premier, Li Keqiang, touched down in Rio on Monday on the first of four stops in his Latin American tour, Lima spoke to Hong Kong newspaper Ta Kung Pao about the 5,000-kilometer railroad project, which aims to connect South America's Atlantic and Pacific coasts via Brazil and Peru. Construction of the railroad was first raised during a visit to Brazil last July by the Chinese president, Xi Jinping.
Companies representing each of the three sides have conducted several rounds of meetings since then, Lima said, adding that he believes the project creates a win-win situation for Brazil's exports and helps China acquire Brazilian goods at lower prices.
In particular, the railway would create a third transport channel between China and Brazil, Lima said. The two main channels at present are via the Panama Canal to a port on Brazil's Atlantic coast, or via the Cape of Good Hope to the Port of Santos.
Additionally, Lima said he personally believed the project would help China's infrastructure development companies discover a new market in Brazil given that Beijing is slowing down infrastructure construction at home.
However, he warned that the project remains in its infancy and no agreemeents of substance have been made thus far because there are still so many issues to explore by the three countries involved, either jointly or individually.
One issue is how the parties intend to overcome the technical issues, including figuring out how such a massive project will go through the Andes, the longest continental mountain range in the world, as well as the Amazon Basin, without damaging the environment or affecting the ecological balance of the region, he said.
There are also significant financial considerations involved, the ambassador said, noting that more economically viable options are being explored. Early estimates have placed the cost of the project at around US$60 billion. Lima added that the three countries will stage an international tender process and work with the World Bank and BRICS' New Development Bank for financing options.
"This trilateral cooperation to build a transoceanic railway is an emblematic example and will allow the creation of an export corridor for grain from the Midwest and also for animal protein," Lima said, as reported by China's official Xinhua news agency.
In addition to the railway project, Premier Li is expected to discuss more than 20 cooperation agreements with Brazil's president, Dilma Rousseff, the ambassador said. One part comprises jointprojects over the next five years, while another are trade agreements covering mining, energy, agriculture, finance, technology and aerospace, he added. "The main objective of this visit is to fully raise the level of cooperation between the two countries in various fields and promote interaction in development strategies with an eye to achieving mutual benefit," Lima told Xinhua.
Increased cooperation between China and Brazil makes sense, said Ta Kung Pao, considering that Brazil accounts for half of South America in terms of not only land but also GDP. Both are also developing countries and BRICS member nations, plus Brazil only recently joined the China-led Asia Infrastructure Investment Bank, the paper added.
Poster Comment:
Looks like another major development in America's backyard but US enterprises are out of the picture because of predatory practices of the past and the preoccupation of politicians with fighting Israel's enemies rather than promoting US involvement in job and wealth creating projects.