Feb 01, 2010
Brazil Asking Chinese For Help In Building Transcontinental Railroad
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
A group of Brazilian politicians and government officials recently completed a trip to China where they pitched the idea of building a transcontinental railroad which would link southeastern Brazil with Peruvian ports on the Pacific Ocean. The rail line would originate in Sao Paulo, which is the industrial heart of Brazil, and progress through Mato Grosso, which will be the agricultural heart of Brazil in the future, before heading west over the Andes Mountains to the Pacific Ocean. The Brazilian officials were also interested in China's help in constructing high-speed passenger rail lines in Brazil as well.
The total extent of the transcontinental rail line would be approximately 4,000 kilometers. The Brazilian officials approached China about constructing the railroad because the Chinese have a lot of experience in constructing long-distance rail lines that encompass different climates, soils, and altitudes. For their part, the Chinese have a vested interest in lowering the cost of transportation for such raw materials as soybeans and iron ore, both of which they purchase in large quantities from Brazil.
As part of the discussions, a senator from Mato Grosso proposed a passenger rail line linking his state with the city of Sao Paulo, but the passenger level on such a line probably would not justify the expense. A high-speed rail line would much more likely be built along the Brazilian Atlantic Coast where the majority of Brazilians still live. One of the biggest impediments to rail transport in Brazil is the fact that the country has three different gauges (width of the tracks), which makes it very difficult to move trains or railcars between systems. The proposed transcontinental line would stay within one of the existing gauge systems.
All of these are just proposals, but the Brazilian Congress is seriously considering legislation authorizing these projects. Brazilian officials realize that the existing rail network in Brazil is in very poor condition and in need of a significant upgrade. Farmers in central Brazil have complained for decades that they can increase their agricultural production, but the lack of infrastructure and the resulting high cost of transportation eat up most of their profit margins.