What to expect from the Brazil-China agreement to build a transoceanic railway

The transoceanic railway that promises to connect the coasts of Brazil, in the Atlantic Ocean, and Peru, in the Pacific, has received a positive nod from China, one of the main interested parties in the project that could cost up to US$ 100 billion — around R$ 550 billion at the current exchange rate.

From now on, Infra SA, a state-owned company linked to the Ministry of Transport, will work with the China State Railway Group 's Economic Planning and Research Institute to develop feasibility studies for the railway. It was not disclosed when the material will be ready.

The agreement signed on Monday (7) is the result of a visit to Brazil by a Chinese delegation in April and the official Brazilian mission to the Asian country, with the presence of the Minister of the Civil House, Rui Costa, and the Minister of Planning, Simone Tebet. On the occasion, the minister acknowledged that the construction of the railway is only possible with China's participation .

“We need foreign capital, and currently, China has the necessary resources, both in the private and public sectors,” Tebet said. The memorandum of understanding is not expected to delve into the routes and works themselves , but rather into a feasibility model for future investments and concessions on the São Paulo Stock Exchange (B3).

The Brazilian government expects that the most significant part of the rail structure, which comprises the West-East Integration Railway (Fiol) and the Central-West Integration Railway (Fico), will be auctioned in the first half of 2026. On paper, they connect Ilhéus (BA) and Lucas do Rio Verde (MT).

In Brazil, there are more than 4,000 kilometers of tracks between Ilhéus and the border with Peru, through Acre. Of all of this, only 15% is ready, and the final stretch, after Lucas de Rio Verde to Cruzeiro do Sul (AC), still does not have a ready project and represents about 35% of the total project on Brazilian soil, as shown below:

• Fiol 1: Ilhéus (BA) to Caetité (BA): 537 km (already built)
• Fiol 2: Caetité (BA) to Barreiras (BA): 485 km (under construction)
• Fiol 3: Barreiras (BA) to Mara Rosa (GO): 838 km (in project)
• Route 1: Mara Rosa (GO) to Água Boa (MT): 383 km (under construction)
• Place 2: Água Boa (MT) to Lucas do Rio Verde (MT): 505 km (in project)
• Lucas do Rio Verde (MT) to Cruzeiro do Sul (AC), reaching the border with Peru in Boqueirão da Esperança (AC), passing first through Vilhena (RO), Porto Velho (RO) and Rio Branco (AC): 1,416 km (in project)

The Peruvian government does not have a plan for its part of the railway , which will have to cross the Andes mountain range to reach the port of Chancay, 80 kilometers from the capital Lima.

The port, built by the Chinese, cost US$1.3 billion and is operated by the Chinese state-owned China Cosco Shipping Corporation and the Peruvian company Volcan — in the first stage of operation, the port has the capacity to handle 1 million containers and 6 million tons of loose cargo per year.

Brazil “strengthens ties” with China through transoceanic railway agreement

China's interest in the transoceanic railway is no coincidence. If the project is completed, the Asian country will have faster and cheaper access to Brazilian commodities , such as soybeans and iron ore. And, in the opposite direction, Chinese industrial products will reach South America more quickly, since it will no longer be necessary for ships to pass through traditional sea routes, including the Panama Canal.

The Chinese dictatorship refers to this and other logistics projects as the “New Silk Road” . In Asia, Africa and Europe, China has also been investing in infrastructure projects, especially in ports, to facilitate exports and reduce costs in accessing raw materials that are essential for the country’s economy.

At the signing of the agreement with Brazil, the Chinese representative, general director of the China State Railway Group , Wang Jie, said that the partnership is “the fruit of wisdom and mutual trust” and that it will “contribute to the dynamism and development of transportation in our countries”. In turn, the national secretary of Railway Transportation, Leonardo Ribeiro, celebrated what he considers “the first step of a technical, institutional and diplomatic journey” that will “strengthen ties between nations that share a long-term vision”.

The Brazilian government has been treating the transoceanic railway as a strategic asset for national logistics and does not want to miss the opportunity to count on the Chinese. Therefore, it has been racing against time to have something concrete before the 2026 elections , which could change the course of Brazil-China relations, currently closely aligned with an agenda of cooperation between President Luiz Inácio Lula da Silva (PT) and Chinese dictator Xi Jinping.

“That is why we are bringing the best in the railway field to provide us with subsidies,” stated Ribeiro, adding that institutions from both countries will work together so that the railway studies “are completed and bring good results.”