The Argentine Belgrano Cargas railway project has begun its two-year construction, according to China Machinery Engineering Corp(CMEC). China is funding the railway project, with a contract value which sums up to $2.47 billion.

The renovation of the railway has been delayed for years. After two years of construction, it will allow efficient transportation of grains from agricultural plains to Argentina's ports.

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In July, Argentina and China signed multibillion-dollar deals which included during a visit by President Xi Jinping. The deals include infrastracture-financing and currency-swap agreement.

The China Development Bank, Industrial and Commercial Bank of China and Argentina's Ministry of Economy and Public Finance agreed to provide a supplemental loan to the project.

CMEC stated that all advanced payments had been received for the projects and the China Export and Credit Insurance Corp had already issued the relevant insurance policy.

Under the agreement terms, CMEC is to start the renovation of around 1500km of railroad and the company will also supply the equipment. The revival of the railway will include 100 new locomotives, around 3500 new wagons and track renewals.

Argentina is the world's third-largest soybean exporter and China is its main buyer. After Brazil, China is the second-largest trading partner of Argentina.

In September, the two countries signed an agreement that allows China to build a fourth nuclear powerplant and two hydropowerplants in Argentina.

This December, Argentina made its third currecncy swap with China to temporarily fix low reserves and currency imbalances.

This railway project and other agreements between Argentina and China is believed to reflect China's growing influence in Latin America.

Tagsrailway, Argentina, Belgrano Cargas, Asian deals, Agreement