During Premier Li’s visit to Brazil, Colombia, Peru and Chile, a series of agreements will be signed. Among those agreements signed is a memorandum of understanding between Peru, China and Brazil to build a cross-continental railroad linking Peru's Pacific coast with Brazil's Atlantic coast. The project is called the Twin Ocean Railroad Connection.

The track will begin from the coastal cities of Peru and end on Brazil's coast, extending to about 5,000 kilometers, including 2,000 kilometers of already existing railway. It will enable shipments of Brazilian ore and soy to be sent from Peru to Asia, which has some of the world’s largest consumers of grain and raw materials.

The trilateral cooperation project was jointly announced by China, Brazil and Peru when Chinese president Xi Jinping made his first South American trip following his participation in the sixth BRICS summit in Brazil last July.

Late last year, at the APEC meeting in Beijing, Peru's Ministry of Transport and Communication, Brazil's Ministry of Transport, and China's National Commission of Development and Reform, signed an agreement at the Great Hall of the People on Tiananmen Square, to explore the project.

Five factors will influence the choice of project routeject, including economic cost (potential construction and existing construction), social cost (social benefits for relevant countries), political cost (consent of the opposing parties), environmental cost (passing through Amazon Rainforest), international cost (international requirements for environmental protection, and competition with other countries).

Promote infrastructure construction in Latin America

China has two competitive strengths, manufacturing capacity and construction capacity, as it has an integrated industrial system and many years of experience in infrastructure. The project is an important foundation for economic cooperation between China and Latin America.

The construction of the project will not only provide convenience for product transportation but also boost the integration process of infrastructure in South America. Industrial parks and processing enterprises along the railroad will stimulate investment and promote economic growth in Latin America.

Boost international cooperation

China has the advantages of capital and technology, and has abundant experience in building railway under various geological conditions with the capacity to build quickly, at low cost, and applying advanced technology. It leads the world in comprehensive strength and railway transport efficiency, and has a favourable safety record.

The project applies the concept of mutual benefit and sharing prosperity, and will improve the living standard of people through infrastructure construction.