Source: Macauhub

A commission led by the Ministry of Transport has examined a study by Chinese engineers to build a railway line between the Atlantic and Pacific oceans and suggested an alternative route to the one originally proposed, said the Secretary for International Affairs of the Ministry of Planning, Development and Management of Brazil.

Jorge Arbache told Chinese news agency Xinhua that the study by the China Railway Engineering Corporation (CREC), whose trajectory crossed the Brazilian state of Acre and ended on the northern coast of Peru, led to doubts about its economic feasibility.

An alternative route, also suggested by CREC, would have been even more complicated, as it had to cross the Andes mountain range and a natural reserve in Peru, and it is not yet clear if this project estimated to cost at tens of billions of dollars could be viable.

The secretary of International Affairs told Xinhua that another study is underway on a more southerly route through Bolivia, which would end at the Peruvian port of Ilo, “but we do not know where this stands at the moment.”

The Xinhua news agency said Jorge Arbache restated the “strong support of the Brazilian government for this project,” given that it considers the economic and commercial relationship with China to be “extremely important.”

“China is our biggest trading partner and also our biggest investor,” said the Secretary for International Affairs, who noted that the China-Brazil Fund for the Expansion of Productive Capacity was set up to finance joint projects.

China is Brazil’s largest trading partner, and in 2017 Chinese companies invested US$20.9 billion in Brazil in energy, transportation logistics, agribusiness, financial services, chemicals and pharmaceuticals, and production and transmission of electricity.