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The New Route to Development: Chinese Investments in Brasil’s Railways

Mell Mariante • Head of Marketing at Cosmopolíticos, International Relations undergraduate at the State University of Paraíba

Published on Jun 6, 2025 12:12 PM - Modified 2 days ago

China’s Strategy and Its Interest in Brasil’s Rail Network

With its continental dimensions, Brasil is a country in need of fast, efficient transportation systems capable of handling large volumes. In this context, railway networks stand out as the most effective solutions. Trains, capable of transporting vast amounts of cargo and reaching speeds of up to 160 km/h, offer an environmentally friendly, cost-effective, and efficient alternative for both freight and passenger transport.

Railways represent a high-return investment for the Brazilian state, as they significantly enhance cargo transportation capacity, as projected for the West-East Integration Railway (FIOL). This project aims to connect the future Port of Ilhéus, on the coast of Bahia, to Figueirópolis, in Tocantins, with an estimated annual transport capacity of 18 million tons at the beginning of its operations, with a projection of 50 million tons within a decade. Beyond FIOL, railway integration projects among BRICS nations underscore the potential for railway investments, such as the International North-South Transport Corridor (INSTC) and the Moscow-Kazan High-Speed Railway.

Key Projects and Ongoing Partnerships

Considering Brasil's major commodity-producing regions, such as soybean and corn cultivation areas, the western region of Bahia and the southern region of Tocantins feature a railway system designed for fast, lower-cost transport routes, reducing transport costs by 30%, as outlined in the National Logistics Plan 2035. The West-East Integration Railway (FIOL), spanning approximately 1,700 kilometers, represents a strategic initiative by the Brazilian government for the transport of raw materials, with future prospects for integration into the Transoceanic Railway.

Funded by a US$50 billion Chinese investment, the Transoceanic Railway is a bold forward-looking initiative designed to connect the port of Chancay in Peru to Brazilian ports in Bahia. The partnership among Brasil, Peru, and China aims to enhance South America’s integration with the Asian market by reducing the export route to China by 10,000 kilometers, bypassing the Panama Canal through more direct corridors.

China’s investment in Brasil was made via the China–Brasil Fund for the Expansion of Production Capacity, a financing mechanism focused on infrastructure, logistics, and sustainable development. This initiative is one of many undertaken by China to promote trade and development across the Global South—also a key goal of the BRICS. By fostering commerce and generating employment, China’s railway efforts in Brasil also contribute to broader sustainable development objectives.

Economic Opportunities and Geopolitical Dilemmas

In addition to reducing export logistics costs for Brazilian commodities, railway investments have the potential to stimulate the domestic economy by increasing production demands and creating jobs. Improved transport connectivity also creates development opportunities in less industrialized regions, such as Acre and Tocantins, allowing them to enhance their infrastructure.

Despite the economic potential, several challenges remain—such as trilateral coordination among Brasil, Russia, and Peru concerning investment funds and early route planning, which initially included sections passing through the Amazon Rainforest. Coordinating this international railway project requires joint studies and logistics planning that serve the interests of all parties—no easy feat, given each country’s distinct priorities and railway infrastructure needs.

Environmental issues also remain a significant concern. Initial routes passed through ecologically sensitive areas, potentially causing severe damage to protected biomes. A revised route has since been proposed—running through Acre and Tocantins—but still presents complications due to its proximity to Indigenous territories, which may lead to future disruptions for local communities.

Outlook for Sustainable Development and Regional Integration

Despite the challenges, investments in rail infrastructure are widely viewed as promising. By reducing the cost of shipping goods from Brasil’s Central-West region to China, the new Pacific route will also cut logistics costs and deepen commercial ties between Brazil and China, according to Brasil’s National Transport and Logistics Observatory.

Aligned with the goals of the BRICS, railway investments are inherently tied to sustainable development, given that trains emit significantly fewer greenhouse gases—up to 83% less compared to road transport—and can carry more volume per square meter, according to the National Land Transport Agency.

With cutting-edge technology and operational expertise, Chinese companies are looking to support railway development while expanding cooperation between the two nations, boosting demand and job creation in both economies. Rail transport emerges as a viable, cost-effective, and lower-impact solution compared to the country’s current road-dominated logistics model.

Railway investments stand out not only for their numerous benefits but also for initiating a strategic partnership aimed at fostering cooperation among countries of the Global South. The shared goal is development—strengthening the BRICS’ presence on the continent and amplifying its voice in global affairs. By building bridges and linking regions, BRICS plays a key role in the geopolitical South and continues to solidify its relevance on the world stage.

» References

English version: Kelvis Santiago do Nascimento/ UFC/ POET
Proofreading by: Michel Emmanuel Félix François/ UFC/ POET

Opinion articles published in this space are the sole responsibility of their authors and do not reflect the official position of the Brazilian BRICS presidency or the Brazilian government. These independent opinions are intended to promote a pluralistic debate on issues relevant to the Global South agenda.
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