Transcontinental Railway Brasil-Peru

Transcontinental Railway Brasil-Peru

A major railway project connecting two of South America’s most developing nations, Brazil and Peru, the Transcontinental Railway Brasil-Peru (also known as Fetab) aims to rapidly increase trade and commerce between the two countries.

“Its ambitious goal is to link the Atlantic and Pacific coasts with a rail line that would traverse Peruvian and Brazilian territory, facilitating the transportation of raw materials. The new railroad would primarily be used to transport phosphates from the port of Bayóvar in the northern Peruvian province of Piura to Brazil, thus enabling Brazilian soy to be exported to the Asian market through Peruvian ports.” (Knowledge, Wharton.Upenn)

The railway line is expected to span over 2800 miles. It would take 5 years to complete and would cost atleast $10 billion. The project is designed to increase production of crops and ore in landlocked northeastern states of Goiás, Mato Grosso and Rondônia and also reduce the strain on the country’s roads and motorways. Under a concession model, the government intends to award contracts for the construction and operation of the infrastructure of the new lines.

(Image credits: Daily Mail)