LIMA, June 1 -- Trade between Peru and Brazil will expand by 10 billion U.S. dollars with the construction of a proposed transcontinental railway linking them, Brazilian Ambassador Carlos Alfredo Lazary in Lima said Monday.

When the railway is up and running with the financial help of China, it will contribute to consolidating integration and trade between the two nations, the ambassador said.

Trade between Peru and Brazil currently stands at around 3.6 billion dollars. About 50 Brazilian companies are operating in Peru, generating 40,000 direct jobs, he said.

He added that the undertaking of this ambitious mega-project will turn Peru and Brazil into competitive logistical centers, which will facilitate the transportation of non-traditional, value-added products.

The transcontinental railway would become the third integration axis between the two countries after the current Interoceanic Highway which joins Lima with the southern Peruvian ports of Ilo and Matarani, he said.

Due to the complexity of the construction project, the feasibility report for the transcontinental railway will be ready in a year.