China-Backed Railway Across South America Gains Momentum

May 23, 2025
 
China-Backed Railway Across South America Gains Momentum

Plans to construct a transcontinental railway slicing across South America—from Brazil’s Atlantic coast to Peru’s Pacific ports—are moving forward with Chinese backing, according to the Brazilian government.

The ambitious project would cross the Amazon Rainforest and dramatically re-shape trade routes between South America and Asia.

This month, Brazilian President Luiz Inácio Lula da Silva and key ministers met with Chinese President Xi Jinping in Beijing to discuss the proposed railway. The goal: to facilitate the faster export of Brazilian commodities, particularly from the country’s agricultural heartlands, to Chinese markets via the Pacific Ocean.

The rail corridor could slash shipping times by up to 10 days compared to current routes that require vessels to traverse the Atlantic Ocean and round the southern tip of Africa. Brazil’s planning minister emphasised the urgency of the initiative, requesting formal Chinese approval within 30 days.

Although Chinese national media report that President Xi has endorsed the project, it still awaits final authorisation from the China State Railway Group. Officials hope to finalise an agreement by the upcoming BRICS summit, scheduled for July 6–7 in Rio de Janeiro.

If realised, the railway would represent a major geopolitical and economic milestone, deepening ties between South America and China while raising environmental and indigenous rights concerns due to its path through the Amazon.

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