Chinese President Xi Jinping signed an agreement with Brazil during a meeting with the Community of Latin American and Caribbean States on Thursday to start laying the tracks for a 1.630-kilometer long railway in the central part of Brazil.

The agreement will further strengthen the relations between the two countries and the two regions.

Like Us on Facebook

Furthermore, Xi proposed to establish a Peru-Brazil transcontinental railway that would significant improve infrastructure, contribute to regional integration and give the economies a boost for their exports.

However, Chinese investments are more than a question of fresh cash to Latin America. China is about to open up to the continent's interior, which for long has been a goal for Brazil and other countries in the region.

Brazil officials welcome Chinese rail companies to get more involved in improving the nation's infrastructure, thus, improving possibilities for Brazil to remain among the fastest growing economies in the world.

One of the more direct achievements from the railway agreement in central Brazil will be to secure the transportation of soybean from the middle-western part of the country.

According to Xi's proposal of establishing a transcontinental railway from Peru on the Pacific coast to Brazil on the Atlantic coast, there will be a trilateral working group that will suggests railway plans, designs, construction and operation.

Latin America is one of the world's leading suppliers of raw materials such as ore, grain and meat. Improvement of the infrastructure by improving the rail network would mean everything and boost the possibilities for export further.

An agreement on a railway that crosses two countries, from Peru to Brazil, would reduce the cost of export to china and also cut the delivery time since shipping could be done from the Pacific coast instead of from the Atlantic coast as the case is today.

TagsCELAC