Brazil, China Advance Talks on 3,000-km Railway Linking Atlantic to Pacific

On May 13, the Brazilian delegation led by President Luiz Inácio Lula da Silva, accompanied by Planning and Budget Minister Simone Tebet, visited Beijing and signed several bilateral agreements and memoranda of understanding with China.

These agreements align with four strategic pillars outlined during Chinese President Xi Jinping’s visit to Brazil late last year: the new Growth Acceleration Program (PAC), the New Industry Brazil initiative, the Ecological Transformation Plan, and the South American Integration Corridors—the latter being one of the most significant projects under Brazil’s Ministry of Planning and Budget (MPO).

China’s primary interest lies in constructing the Bioceanic Railway, which, once completed, will link Ilhéus in Bahia to the port of Chancay in Peru. The railway route will cross key Brazilian agribusiness regions, including Matopiba—the frontier area encompassing Maranhão, Tocantins, Piauí, and Bahia.

“This represents a revolution. Once this project becomes a reality, it will transform Brazil’s entire economic landscape. We’re bringing development to a region considered the wealthiest regarding soil quality and agribusiness potential, yet still lacking infrastructure,” said Minister Tebet. “The railway project will make Brazil far more competitive. It’s a radical shift. It will have a direct impact on the North, Central-West, and the interior of the Southeast and Northeast. Its development impact is comparable to that of a tax reform in the South and Southeast industrial sectors,” she added.

The Ministry of Planning and Budget is developing the railway blueprint in coordination with the Chief of Staff’s Office, the Ministry of Transport, and the Ministry of Ports and Airports.

A 3,000-Kilometer Connection

Although the exact route is still being determined, the plan is to link the ongoing West-East Integration Railway (FIOL) with the Central-West Integration Railway (FICO), extending the network into Peru.

“China, Peru, and Brazil all have vested interests in the project. The goal is to ensure legal certainty and predictability so that, regardless of changes in government, this remains a long-term commitment of the Brazilian state with clear economic feasibility,” Tebet emphasized.

“The plan is, indeed, to cut across Brazil from east to west,” the minister said. “When we say ‘cut across,’ we’re talking about at least 3,000 kilometers to connect to the railway Vale is building via FICO, which links to FIOL in Bahia. We’ve been working on this for 60 days. We are making progress,” Tebet added, referencing negotiations initiated by MPO’s Institutional Relations Secretary João Villaverde, in collaboration with the Chief of Staff’s special secretariat for the new PAC and the national railway secretariat within the Ministry of Transport.

Talks between the ministries and the Chinese state-owned China State Railway Group have included technical visits to Brasília, Mara Rosa (a junction point connecting FICO, FIOL, and the North-South Railway), and the Port of Santos in São Paulo.

Railway projects are typically expensive and time-consuming, involving multiple phases, from technical, environmental, and economic feasibility studies to construction. The participation of private capital, including international investment, is critical to making such a large-scale initiative viable.

“There’s not enough domestic private investment; we need foreign capital. Right now, China has the necessary resources—both in the private and public sectors,” Minister Tebet concluded.

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