The dream of a transcontinental railway linking the Atlantic to the Pacific gains momentum with the partnership between Brazil and China, bringing technical and financial challenges but also great opportunities for national logistics.

Every great city reveals its intelligence by the way it moves people. In Brazil’s case, efficiency in cargo transport is fundamental to the competitiveness of exports, especially of agricultural commodities and ores. In this context, the resumption of the Brazil-Peru Transcontinental Railway project, which will link Bahia to the Peruvian port of Chancay, represents a milestone in the country’s logistics strategy. The initiative, driven by a strategic partnership with China, promises to significantly reduce costs and transport time for Brazilian products to Asia, the country’s main export market.

The memorandum of understanding signed between the Brazilian government, represented by Infra S.A., and the China Railway Economic Planning and Research Institute marks the start of a complex technical and diplomatic journey. The project, which will cut across the South American continent, passing through the states of Goiás, Mato Grosso, Rondônia, and Acre before reaching Peru, aims to shorten the sea travel time between Brazil and China from 40 to 28 days. This time saving is crucial for the competitiveness of Brazilian exports, especially soybeans, corn, and iron ore, which are essential for the Chinese economy.

Building a transcontinental railway, however, is no easy task. The average cost of one kilometer of railway in Brazil is R$ 27 million, more than three times the cost of a highway, which is around R$ 8 million per kilometer. Additionally, the project faces environmental and infrastructure challenges similar to those that stalled the Ferrogrão Project, which planned the construction of 1,000 km of tracks linking Sinop (MT) to Itaituba (PA) to transport grains. Ferrogrão, although it has been the target of environmental controversies, demonstrates the importance of railway concession projects for the sector’s development.

Intermodality is another crucial aspect for the success of the transcontinental railway. The East-West Corridor project, which will connect the Fico (Center-West) and Fiol (Bahia) railways over a 1,700 km stretch, is an example of how integrating different modes can optimize logistics and reduce costs. Connecting these networks will allow grains produced in the Center-West to be transported to the Port of Ilhéus, facilitating export to international markets.

To make these projects viable, financial support is essential. The Brazilian government, in partnership with BNDES, is negotiating special financing lines with longer terms and greater grace periods during construction. Furthermore, Chinese interest in investing in infrastructure in Brazil, driven by the need to ensure food security, opens up new possibilities for Public-Private Partnerships (PPPs). Chinese companies, such as CCCC and CRRC, have already shown interest in participating in railway auctions scheduled for 2026, which include 9,000 km of tracks and R$ 140 billion in investments.

Technology also plays an important role in this equation. The use of diesel-electric locomotives and specialized wagons, such as gondolas and hoppers, increases the efficiency of transporting iron ore and agricultural commodities. Additionally, mixed gauge, which allows the circulation of trains with different track widths, is an innovative solution that could be adopted to integrate existing networks and new constructions.

The Brazil-Peru Transcontinental Railway project, besides representing a qualitative leap in national logistics, also has the potential to strengthen the commercial and diplomatic relationship between Brazil and China. With China being Brazil’s largest trading partner, reducing costs and transport time for commodities is a strategic priority. The realization of this project, despite the challenges, could transform the country’s logistics landscape, providing significant economic and social benefits.

On the domestic front, the expansion of the railway network is also underway. The São Paulo state government announced an investment of R$ 57 billion to expand the metro network by about 50 km, supplemented by R$ 14 billion for 22 km of railway network. The schedule involves simultaneous works on several lines, including Line 2-Green, 4-Yellow, 6-Orange, 15-Silver, 17-Gold, 11-Coral, 12-Sapphire, and 13-Jade. These expansions aim to improve urban mobility and the quality of life for citizens, as well as stimulate the region’s economic development.

In Rio de Janeiro, the State Government detailed an ambitious metro expansion project, foreseeing 31 new stations, 44 km of tracks, and a tunnel under Guanabara Bay by 2032. With an investment of R$ 28.8 billion via Public-Private Partnership (PPP), the initiative seeks to integrate transport in the Metropolitan Region, reduce travel time, and generate jobs. Line 3, which will connect Praça 15, in downtown Rio, to Guaxindiba, in São Gonçalo, with a stop in Niterói, is one of the main components of the project. The new stretch will be 22 km long, of which 3 km will be under Guanabara Bay, marking the first direct metro link between the capital and other municipalities.

These projects, both nationally and regionally, demonstrate the strategic importance of rail transport for the country’s economic and social development. The revival of the transcontinental railway dream, combined with the expansion of metro and railway networks, signals a promising future for the sector, with significant positive impacts on productivity, urban mobility, and national sovereignty.

Signature: Editorial Staff