Executive Summary

The proposed China-Peru-Brazil railway, officially known as the Bi-Oceanic Railway or Twin Ocean Railroad Connection, represents an ambitious infrastructure initiative aimed at directly linking the Atlantic and Pacific Oceans, thereby enhancing trade connectivity between South America and Asia. Conceived decades ago and revived through recent high-level agreements, particularly the July 2025 Memorandum of Understanding between Brazil and China, the project seeks to significantly reduce shipping times and costs for Brazilian commodities destined for Asian markets, bypassing the Panama Canal. While the recently inaugurated Chinese-built Port of Chancay in Peru serves as a critical Pacific gateway, the railway project remains in its feasibility study phase, with a projected duration of up to five years for these comprehensive technical, economic, logistical, and environmental assessments. Despite its transformative economic potential for regional integration and export efficiency, the project faces formidable challenges, including estimated costs exceeding $70 billion, complex inter-country coordination, and significant environmental and social concerns, particularly regarding its proposed routes through the Amazon rainforest and proximity to indigenous territories. Past failures of similar initiatives underscore the need for robust governance, transparent impact assessments, and sustained political will to navigate these hurdles and translate this grand vision into a tangible reality.

1. Introduction: Bridging Continents and Markets

1.1 Project Concept and Strategic Vision

The Transcontinental Railway Brazil-Peru, also known as the Twin Ocean Railroad Connection (Chinese: 两洋铁路) or the Brazil-Peru Bi-oceanic Corridor, is a monumental rail project designed to forge a direct link between the Atlantic and Pacific Oceans.¹ This initiative is fundamentally aimed at increasing commerce between Brazil and Peru and, more broadly, at enhancing South America's integration with and access to Asian markets, especially China.¹ The project's overarching goal is to facilitate a more direct and efficient trade route for Brazilian goods, particularly agricultural and mineral commodities, to reach Asia, thereby reducing reliance on the Panama Canal.³ This direct connection is projected to shorten shipping times to Asian markets by as much as 10 to 12 days, offering substantial logistical advantages and cost reductions for Brazilian exports.³

The strategic vision extends beyond mere transportation; it seeks to unlock the full potential of connecting the Brazilian and Peruvian railway networks, positioning Brazil as a pivotal "bridge between the Atlantic and the Pacific".² This project is seen as a key component of Brazil's broader "South American Integration Routes" initiative, launched in 2023, which prioritizes connecting road, river, and rail networks in border areas with neighboring countries.⁷ For China, the railway aligns with its broader Belt and Road Initiative (BRI), fostering economic interdependence and regional development in the Global South by addressing infrastructure gaps and promoting its economic and political interests.³ The project signifies a strategic step for Brazil's transportation sector, aiming to attract investment and promote deeper regional and international integration with countries in Latin America and Asia.⁵

1.2 Historical Context and Evolution

The concept of a transcontinental railway linking Brazil and Peru is not new, with discussions dating back to the 1960s.² However, substantial progress on this ambitious vision began more recently. On March 19, 2008, the Peruvian Congress declared the project to be of national interest, signaling early commitment.¹ In 2011, former Colombian President Juan Manuel Santos even disclosed discussions with China for an inter-ocean railway, though this "Dry Canal" project was distinct from the Brazil-Peru initiative.¹

A significant milestone occurred on July 16, 2014, when China, Brazil, and Peru collectively released a joint statement indicating their commitment to cooperate on a bi-ocean railway.¹ This "Joint Statement by China, Brazil, and Peru regarding the Bi-Oceanic Railway Project cooperation" delineated a plan for a railway extending westward from the southeastern Brazilian state of Rio de Janeiro to the port of Callao in Peru.¹ Following this, from May 6 to 14, 2015, a task group from China's National Development and Reform Commission visited Brazil and Peru to discuss the project's promotion.¹ On May 19, 2015, China and Brazil executed a collaborative five-year agreement, and a Memorandum of Understanding (MOU) was signed by China, Brazil, and Peru for the joint conduction of basic feasibility studies.¹ Under this agreement, China Railway Eryuan Engineering Group (CREEC) was tasked with undertaking a basic feasibility study in collaboration with the host countries' ministries of transportation.⁹

Despite these initial agreements, the construction of the Bi-Oceanic Railway failed to achieve significant advancement in the years that followed.¹ This stagnation was primarily due to political instability in Brazil and economic challenges in other Latin American nations.¹ Furthermore, a critical factor in the project's slowdown was a clash between Chinese and Brazilian interests, particularly regarding the use of technical standards, with Brazil rejecting a Chinese-provided feasibility study due to its perceived poor quality and lack of in-depth social-environmental impact analysis.⁸ The study even controversially proposed changing local laws to reduce the perimeter of a national park for project implementation.⁸ Brazil confirmed in 2018 that it had dropped the railway to the Pacific for China exports, citing costs and Peru's environmental concerns.⁸

The project concept experienced a pivotal resurrection with Luiz Inácio Lula da Silva's resurgence to power in Brazil in 2023.¹ Brazil's current transportation infrastructure predominantly depends on road travel, rendering trains essential for the nation's future advancement and providing renewed impetus for the railway.¹ The inauguration of the Chinese-built Chancay Port in Peru in November 2024 further reignited Brazil's interest in enhancing connectivity with China, as this port is envisioned as a major Pacific gateway for the railway.² This renewed interest culminated in a significant agreement on July 7, 2025, when Brazil and China signed a memorandum of understanding to initiate joint studies for the construction of a rail corridor connecting the Atlantic and Pacific Oceans, marking the latest development in the project's long history.⁴

2. Project Details and Proposed Routes

2.1 Current Main Route and Brazilian Section

The main proposed route for the bi-oceanic railway spans approximately 6,500 kilometers.² It is designed to commence at the Port of Chancay on Peru's Pacific coast, traverse the Andes Mountains at an altitude of 4,818 meters heading northeast, cross the Amazon rainforest along the Peru-Brazil border, connect with Brazil's under-construction east-west integrated railway FICO-FIOL in Porto Velho, and ultimately reach the Atlantic port of Ilhéus in the state of Bahia.²

On the Brazilian side, the project's primary focus involves actively promoting the construction of the FICO-FIOL (West-East Integration Railway and Center-West Integration Railway) lines.² These railways are central to the new route and are intended to run from east to west, starting at the Atlantic port of Ilhéus.² The Brazilian government's plan, as disclosed in the July 2025 MoU, indicates the Bioceanic Railway will begin in the city of Lucas do Rio Verde, in the state of Mato Grosso.⁵ From there, it is planned to pass through the border with Bolivia, cross the entire state of Rondônia, and continue through southern Acre, near the Peruvian border.⁵ This route aims to integrate Brazil's existing and planned railway networks, specifically the West-East Integration (FIOL), Center-West Integration (FICO), and North-South Railway (FNS).⁷

The FIOL and FICO segments that form part of the bi-Oceanic corridor are divided into three sections, reflecting varying stages of development ²:

●       FIOL 1: Stretching 537 kilometers from Ilhéus to Caetité in the state of Bahia, this section has already been completed.²

●       FIOL 2: Running 485 kilometers from Caetité to Barreiras, also in Bahia, this segment is currently under construction.²

●       FIOL 3: Covering 838 kilometers from Barreiras to Mara Rosa in the state of Goiás, this section is still in the project research phase.²

A significant challenge on the Brazilian side is the conceptual nature of the segment from Lucas do Rio Verde to Acre on the Peruvian border, where no actual project is currently in place.² This unbuilt stretch represents nearly half of the Brazilian portion of the corridor, highlighting the substantial work still required.² The total length of the corridor within Brazil is estimated to involve more than 4,000 kilometers of track, with less than 15% currently ready.²

2.2 Peruvian Section and Connection to China

The Peruvian section of the railway is critical for connecting South America to Asian markets. The planned line will extend from the Peruvian border to the Port of Chancay, which was built by China and inaugurated in November 2024.² This deepwater port, located just 70 kilometers from Lima, is a cornerstone of the project, envisioned as a major transshipment hub for goods moving between Asia and South America, potentially reducing reliance on the Panama Canal.² COSCO Shipping, a Chinese state-owned company, holds a 60% stake and exclusive operating concession for the Chancay Port.²

Railway construction in Peru is still in the preliminary research stage.² In March 2025, Peru's Ministry of Transport and Communications (MTC) announced the launch of pre-investment studies for the Trans-Andean railway project.² These studies are comprehensive, including route surveys, station planning, mapping, and cost estimation.² This Trans-Andean railway is projected to cross the Andes Mountains and reach the Amazon rainforest region, with a total length of approximately 900 kilometers.² Upon completion, it is expected to be the longest railway trunk line in Peru.² The Peruvian section alone is estimated to require over USD 14 billion in investment and is planned to be developed under a public-private partnership (PPP) model.²

The connection to China is facilitated through the maritime route from the Port of Chancay across the Pacific Ocean.⁵ The railway's primary purpose is to streamline the transport of Brazilian goods to this Pacific port, from where they can be shipped directly to Shanghai Port in China, significantly shortening export times.⁵ This logistical overhaul is a key driver for China's involvement, as it seeks to enhance trade efficiency with its major commodity suppliers in South America.³

2.3 Bolivian Alternative Route

While the direct Brazil-Peru route is the primary focus of recent agreements, a Bolivian alternative route has also been under consideration for the transcontinental railway project.¹⁵ This proposed route, also known as the Central Bi-Oceanic railway, aims to connect the Atlantic and Pacific Oceans via Bolivia.¹⁵ The project was initially brought up in 2013 by heads of state Evo Morales of Bolivia and Xi Jinping of China as an alternative to maritime shipping between China and South America's Atlantic coast.¹⁵

On December 6, 2017, the heads of state of Brazil and Bolivia signed an agreement regarding this alternative track.¹⁵ Currently, there are two potential routes under discussion for the Bolivian corridor: one from Santos, Brazil, to Ilo, Peru, and another from Santos, Brazil, to Matarani, Peru.¹⁵ This route was estimated to cost €12 billion in 2017 and $72 billion circa 2023.¹⁵

The Bolivian route offers a different set of logistical and geopolitical considerations. While the Brazil-Peru direct route is more focused on Chinese trade interests and leverages the Chancay megaport, the Bolivian corridor reflects a broader regional push for economic integration, even including Paraguay.¹³ However, recent developments suggest that the direct Brazil-Peru route, particularly with the operationalization of the Chancay Port, appears to be the more feasible and prioritized option.¹³ Despite this, the Bolivian route is still officially under consideration, indicating the complexity of regional infrastructure planning and the desire for multiple options for transcontinental connectivity.¹⁵

3. Objectives and Motivations

3.1 Economic Drivers

The primary economic driver for the Brazil-Peru-China railway is the significant reduction in trade logistics costs and transit times.³ By providing a direct rail link from Brazil’s Atlantic coast to Peru’s Pacific coast, the project aims to shorten export times to Asia by up to 10 to 12 days compared to current routes that necessitate passage through the Panama Canal.³ This reduction in transit time and distance, estimated to be as much as 10,000 kilometers, directly translates into lower shipping costs for Brazilian commodities, making them more competitive in Asian markets.³

Brazil, as a major global exporter of raw materials, particularly soybeans, corn, iron ore, copper, and beef, stands to gain immensely from this enhanced connectivity.¹ The proposed route will commence from Brazil's industrial zone in the southeast, pass through the "Iron Quadrangle" iron ore region, the agricultural belt of Goiás State, and the copper mining area of the Andes Mountains – all vital resource zones.¹ This direct access to the Pacific is expected to boost the export volumes and revenues for these key sectors, stimulating the domestic economy by increasing production demands and creating jobs.³ Improved transport connectivity also creates development opportunities in less industrialized regions, such as Acre and Tocantins, by enhancing their infrastructure and integrating them into global supply chains.³

For China, the railway serves as a crucial means to secure and diversify its supply chains for essential commodities from South America.³ China's capability in infrastructure, equipment manufacturing, and railway-building expertise positions it as an ideal partner, and its investments, often channeled through mechanisms like the China–Brazil Fund for the Expansion of Production Capacity, are aimed at promoting trade and development across the Global South.³ The project is also seen as a key factor in unlocking the full potential of the recently inaugurated Chancay megaport in Peru, which, without a direct rail connection to Brazil, would have limited utility as a regional hub.⁵

3.2 Geopolitical and Strategic Imperatives

Beyond economic benefits, the Brazil-Peru-China railway carries significant geopolitical and strategic implications for all involved nations and the broader region. For Brazil, the project represents a strategic step towards strengthening its ties with Asia and diversifying its trade routes, reducing its logistical dependence on traditional maritime corridors.⁵ By positioning itself as a "bridge between the Atlantic and the Pacific," Brazil enhances its regional influence and integration within South America.⁴ This aligns with Brazil's broader "South American Integration Routes" initiative, which prioritizes cross-border infrastructure to connect complementary economies.⁴

For China, the railway is a tangible manifestation of its growing influence in Latin America, particularly through infrastructure investments.¹⁰ China has significantly expanded its economic and geopolitical footprint in the region, with trade exceeding $518 billion in 2024 and projected to reach over $700 billion by 2035.¹⁸ Investments in critical infrastructure like ports and railways, including the Bioceanic Railway Corridor, are key to this expansion.¹⁰ This project, if completed, could reshape trade flows in South America and offer an alternative to the Panama Canal, potentially giving China significant geopolitical leverage by controlling key infrastructure assets.⁵ This capability could, in a global conflict or trade dispute, be used to disrupt shipping routes or exert pressure on other nations, which raises concerns for countries like the United States.¹⁰

The project also reflects China's broader foreign policy objectives, such as the "Harmonious World" and "Peaceful Development" ideologies, intertwined with strategic imperatives to foster economic interdependence.⁸ While some critics voice concerns about potential "debt traps" and lower environmental and labor standards associated with Chinese loans and projects, China views these initiatives as a means to promote economic development and cooperation with the Global South.⁹ The railway's advancement, particularly with the operational Chancay Port, establishes a new land-and-sea connectivity link between Asia and Latin America, reinforcing China's strategic presence.¹³

The United States has historically viewed Latin America as its sphere of influence, and China's increasing encroachment and control over critical infrastructure assets in the region have prompted calls for increased U.S. engagement and investment to counter China's growing sway.¹⁰ The competition for influence in Latin America underscores the project's broader geopolitical significance, as it could shift the balance of power in the region.¹⁰

4. Key Stakeholders and Their Roles

The Brazil-Peru-China railway project involves a complex web of stakeholders, each with distinct roles, interests, and levels of influence. Understanding these actors is crucial for comprehending the project's dynamics and challenges.

4.1 Governments and State Entities

The governments of Brazil, Peru, and China are the primary drivers and decision-makers for this transcontinental railway.¹

●       Brazil: The Brazilian government, particularly through its Ministry of Transport and the state-owned company Infra S.A., is a key proponent. Brazil's National Secretary of Railway Transportation, Leonardo Ribeiro, has emphasized the project as a "strategic step for the transportation sector in Brazil" and an "essential partnership".⁵ The project is integrated into Brazil's "South American Integration Routes" initiative, led by the Ministry of Planning and Budget, which aims to connect regional transport networks.⁷ President Luiz Inácio Lula da Silva's government views access to the Pacific as essential for strengthening ties with Asia and boosting exports.¹²

●       Peru: The Peruvian government, through its Ministry of Economy and Finance and Ministry of Transport and Communications (MTC), has expressed an optimistic disposition towards the project.¹ Peru's Economy Minister Raul Perez Reyes has actively sought high-level meetings with Chinese and Brazilian counterparts to advance the railway.¹⁴ The Peruvian Congress declared the project of national interest as early as 2008.¹

●       China: China is a crucial partner, providing significant investment, technical expertise, and railway-building capabilities.³ The China Railway Economic and Planning Research Institute, part of China State Railway Group, is responsible for coordinating feasibility studies with Brazilian counterparts.⁵ China's ambassador to Peru, Song Yang, has been directly involved in high-level discussions.¹⁴ The project aligns with China's broader Belt and Road Initiative, aiming to foster economic interdependence and promote its global economic and political interests.⁸

4.2 Corporations and Financial Institutions

Several corporate and financial entities play pivotal roles in the project's development and funding.

●       China Railway Eryuan Engineering Group (CREEC): This Chinese state-owned company was initially put in charge of undertaking basic feasibility studies in collaboration with host countries' ministries of transportation in 2015.⁹

●       Infra S.A. (Brazil): A Brazilian state-owned company under the Ministry of Transport, Infra S.A. is responsible for conducting joint studies with China's railway research institute.⁶

●       COSCO Shipping (China): This Chinese shipping giant is a significant entity due to its exclusive rights to operate the new Chancay "mega port" in Peru, a critical Pacific terminus for the railway.² COSCO Shipping's investment and operational control over Chancay underscore the port's strategic importance to the overall railway vision.²

●       China Development Bank & New Development Bank: These Chinese-led financial institutions are crucial for funding large-scale infrastructure projects in the Global South, including potential railway developments.¹ China's investment in Brazil, for example, is partly made via the China–Brazil Fund for the Expansion of Production Capacity.³

4.3 Civil Society and International Observers

The project has also drawn significant attention and scrutiny from various civil society organizations, indigenous groups, and international observers.

●       Environmental Activists and NGOs: Groups such as Greenpeace, SOS Amazonia, Friends of the Earth Peru, Derecho Ambiente y Recursos Naturales (DAR), Conservación Internacional, and Survival International have voiced strong concerns about the project's potential environmental impact, particularly on the Amazon rainforest and protected areas.¹¹ They warn of deforestation, land use change, and increased mining, advocating for robust environmental impact assessments and transparency.¹¹

●       Indigenous Organizations and Local Communities: Organizations like OPIN (Acrean indigenous organization) and anthropological associations have warned about the railway's indirect effects on indigenous communities and the potential for forced displacement, loss of livelihood, and cultural disruption, especially if routes cross indigenous reserves.¹¹ Their concerns highlight the social dimensions of large-scale infrastructure development.¹¹

●       Analysts and Researchers: Institutions like ANBOUND, Carnegie Endowment for International Peace, and the Centre for China and Asia-Pacific Studies in Lima provide critical analysis on the project's geopolitical, economic, and socio-environmental implications.² Their assessments often highlight the complexities, risks, and potential shortcomings of such mega-projects.²

●       United States: The U.S. government and various think tanks observe China's growing influence in Latin America with unease, urging vigilance on Chinese investments due to concerns about debt traps, lower standards, and national security risks related to control over critical infrastructure.¹⁰ This international scrutiny adds another layer of complexity to the project's geopolitical landscape.

5. Shipping Time and Cost

We analyzed the case of a client in Ilhéus, Brazil, who decided to purchase two electric vehicles manufactured in China.

5.1 Product to be Imported

Product: AITO M9

Quantity: 2

Container: 1 x 40"

Origin: Shanghai - China Destination: Ilheus – Brazil

Total Miles per Country

• Total in Peru: The land route in Peru, from the port of Chancay to the border with Brazil in Iñapari, is 1,115.98 miles. This part of the route crosses the Peruvian highlands.
• Total in Brazil: The Brazilian section of the route, which runs from the border in Assis to the port of Ilheus, is 3,435.25 miles long.

5.3. Cost Analysis of the Route via Chancay (Peru)

The total estimated cost to transport one container with cars from Shanghai to Ilheus, following the route that passes through the port of Chancay and continues by train, is $231,472.23.

Below is a table with the estimated costs for the brazilian importer, broken down into the main components of the route:

Based on this estimate, moving one container would take approximately 32 days to travel from Shanghai to Ilhéus Port.

5.4. Cost Analysis of the Route via the Panama Canal

The total estimated cost to transport one container with cars from Shanghai to Ilheus, following the route that passes through the current Panama Canal, is $215,196.08.

Below is a table with the estimated costs for the Brazilian importer, broken down into the main components of the route:

Based on this estimate, moving one container would take approximately 30 to 45 days to travel from Shanghai to Ilhéus Port.

Formula Explanations

• Days (Rail): This is calculated by dividing the distance (in kilometers) by the total distance a train can travel in one day. The formula assumes an average freight train speed of 42 km/h and there are 24 hours in a day.
• Days (Maritime): This is a fixed value based on the average transit time for a container ship on the specified route.
• Miles: This is calculated by converting kilometers to miles using the standard conversion factor of 1 km = 0.621371 miles.
• Cost USD (Rail): This is calculated by multiplying the distance (in kilometers) by an estimated cost of $2.70 per kilometer for a 40ft container, based on costs for similar rail infrastructure.
• Cost USD (Maritime): This is a fixed estimated value for the cost of shipping a 40ft container on the sea route.

6. Current Status and Latest Developments (As of July-August 2025)

The Brazil-Peru-China railway project, after periods of stagnation, has seen a significant revival of interest and concrete steps towards its realization in 2025.

6.1 Feasibility Studies and Agreements

The most recent and pivotal development occurred on July 7, 2025, when Brazil and China signed a Memorandum of Understanding (MoU) to launch joint studies for the construction of the rail corridor.⁴ This agreement marks a crucial step, committing both nations to a comprehensive assessment of the project's viability.⁶

The feasibility study, which is projected to take up to five years, will cover technical, economic, logistical, and environmental factors to ensure the long-term sustainability of the transcontinental route.⁵ The Brazilian Ministry of Transport (through Infra S.A.) and the China Railway Economic and Planning Research Institute of China State Railway Group are responsible for coordinating these studies.⁵ This signifies a renewed, structured approach to addressing the complex challenges that previously hindered the project's progress.

Prior to this MoU, there were clear signals of renewed engagement. In April 2025, a delegation of Chinese government railway engineers visited Brazil's FICO and FIOL railway lines, which are anticipated to be important components of the larger corridor.² This on-site assessment demonstrated China's practical interest and commitment to understanding the existing infrastructure and potential integration points.⁶

6.2 Progress on Brazilian and Peruvian Infrastructure

While the transcontinental link is still in the study phase, progress continues on key segments within Brazil and Peru that are intended to form part of the larger bi-oceanic corridor.

Brazilian Side:

●       FIOL-FICO Railways: Brazil's primary focus has been on promoting the construction of the FICO-FIOL railway, which runs from the Atlantic port of Ilhéus to the inland port of Porto Velho.²

○       FIOL 1 (Ilhéus to Caetité): This 537-kilometer section has been completed.²

○       FIOL 2 (Caetité to Barreiras): This 485-kilometer section is currently under construction.²

○       FIOL 3 (Barreiras to Mara Rosa): This 838-kilometer section is still in the project research phase.²

●       Conceptual Gap: A significant portion of the Brazilian route, specifically the stretch from Lucas do Rio Verde to Acre on the Peruvian border, remains a conceptual plan with no actual project in place.² This segment represents nearly half of the Brazilian portion of the corridor, indicating the scale of future construction required.²

●       Investment Plans: The Brazilian government has demonstrated its commitment through financial allocations, including USD 776 million from the national budget for 2025 to support the South American integration route plan.² In February 2025, Brazil unveiled a USD 17 billion railway investment plan aimed at increasing rail transport's share in exports.²

Peruvian Side:

●       Port of Chancay: The construction of the Port of Chancay, a crucial Pacific terminus for the railway, has been completed.² Phase I of the port officially began operations in November 2024.² This Chinese-built megaport is a significant enabler for the railway project, as it provides the necessary deepwater access for large vessels connecting to Asia.²

●       Trans-Andean Railway Studies: In March 2025, Peru's Ministry of Transport and Communications (MTC) announced the launch of pre-investment studies for the Trans-Andean railway project.² This approximately 900-kilometer railway will cross the Andes Mountains and reach the Amazon rainforest region, forming a vital link in the overall transcontinental route.² These studies are essential groundwork before any construction can commence.²

●       High-Level Discussions: On May 26, 2025, the Peruvian Ministry of Economy and Finance and the Ministry of Transport and Communications released a statement indicating their readiness to pursue high-level discussions with Chinese officials and business representatives to advance the bi-oceanic railway.¹ This indicates Peru's proactive stance in moving the project forward.

Overall, while significant progress has been made in planning and preliminary studies, particularly with the recent Brazil-China MoU for feasibility studies, the actual construction of the full transcontinental railway remains a massive undertaking, with only a fraction of the necessary track in Brazil currently ready.² The project is still in a preparatory phase, with the next five years dedicated to comprehensive assessments before any final commitments on route selection or construction can be made.⁶

7. Challenges and Controversies

The ambitious scope of the Brazil-Peru-China railway project is matched by a formidable array of challenges and controversies, spanning financial, political, logistical, environmental, and social dimensions. These complexities have historically impeded progress and continue to necessitate careful navigation.

7.1 Financial and Logistical Hurdles

The sheer scale of the project presents immense financial and logistical hurdles. Estimates for the total cost of the transcontinental corridor range from $70 billion to $72 billion, making it one of the most expensive infrastructure projects ever proposed in South America.⁶ Within Brazil alone, the project involves more than 4,000 kilometers of track, of which less than 15% is currently ready.² This indicates a massive undertaking requiring substantial capital investment and long-term financial commitment.

A key financial concern is the ability to recoup such significant costs, especially given past projects of this nature have struggled with economic viability.¹⁶ The design primarily relies on integrating existing and under-construction Brazilian railway routes (FIOL-FICO), but the crucial segment from Lucas do Rio Verde to the Peruvian border is still only a conceptual plan, lacking concrete project development.² This gap represents nearly half of the Brazilian portion of the corridor, underscoring the substantial investment still required for new construction.²

Logistically, crossing the diverse and challenging South American terrain poses immense technical difficulties. The route must traverse the Andes Mountains, requiring extensive tunnels and bridges, which significantly push costs higher.² Furthermore, navigating the vast Amazon rainforest presents unique engineering and logistical challenges, demanding innovative solutions to minimize environmental disruption while ensuring operational efficiency.² The coordination of such a massive project across two countries with different existing railway standards and operational practices also adds layers of logistical complexity.³

7.2 Political and Coordination Obstacles

Political instability and a lack of consistent inter-country coordination have been significant impediments to the project's advancement. Past failures, such as the stagnation after the 2014-2015 agreements, were partly attributed to political instability in Brazil and economic stagnation in other Latin American nations.¹

A fundamental challenge identified in previous attempts was a clash between Chinese and Brazilian interests.⁸ Specifically, Brazil required the use of local technical standards, while China sought to promote its own.⁹ This divergence, coupled with a Chinese-provided feasibility study that Brazil deemed of poor quality and lacking in-depth social-environmental analysis, led to Brazil's rejection of the study and a subsequent abandonment of the initiative in 2018.⁸ This highlights the critical importance of aligning technical standards and ensuring mutual agreement on project methodologies and impact assessments.

More recently, the signing of the July 2025 MoU between Brazil and China triggered unease in Peru, as Peruvian officials were not formally involved in the signing, despite the project passing through their territory.¹² Some local media described this as a violation of Peru's sovereignty, underscoring the delicate diplomatic balance required for such a trilateral undertaking.¹² This incident demonstrates that despite renewed political will, ensuring transparent and inclusive coordination among all three sovereign nations remains a sensitive and ongoing challenge.³ Without solid economic grounds and guaranteed funding, and given these political tensions, there is a real risk the railway could remain little more than a grand vision.¹²

Moreover, the project is situated within a broader geopolitical context of rising unease in Washington over China's growing economic influence in the Western Hemisphere.¹⁰ This external scrutiny adds a layer of political complexity, as the U.S. urges vigilance on Chinese investments and seeks to increase its own engagement in Latin America to counter China's sway.¹⁰

7.3 Environmental and Social Concerns

The proposed railway traverses ecologically sensitive regions, including significant portions of the Amazon rainforest, the Andes Mountains, and areas within Brazil's "Arc of Deforestation," raising profound environmental and social concerns.⁶ Environmental activists and civil society organizations have voiced strong opposition, warning that the project could accelerate deforestation and degradation in these vital biomes.¹¹

Key environmental concerns include:

●       Deforestation and Biodiversity Loss: The railway's construction, particularly the segments built from scratch into the Amazon, could lead to significant deforestation and loss of vegetation cover, impacting biodiversity and sensitive ecosystems.¹¹ The Amazon is characterized by a lack of state presence and oversight, which intensifies fears that new infrastructure could exacerbate illegal logging, land-grabbing, and agricultural expansion.¹⁷

●       Impact on Protected Areas and Indigenous Lands: While Brazilian planners have altered some routes to avoid directly cutting through Indigenous lands or protected forest areas, concerns remain.¹⁷ The railway will pass close to several protected territories, potentially driving the conversion of remaining forest areas crucial to indigenous peoples.¹⁷ Previous routes were criticized for crossing indigenous reserves and national parks, highlighting the need for careful route selection and impact mitigation.⁸ The FICO railway, part of the corridor, already threatens the headwaters of the Xingu River, impacting the Xingu Indigenous Park.¹⁷ Altering conservation laws to make way for tracks would be far from straightforward.¹²

●       Historical Patterns of Destruction: Critics point to the negative impacts of past infrastructure projects, such as the Trans-Amazonian Highway, which led to massive deforestation and endangered native peoples through increased violence from illegal loggers and cattle ranchers.¹¹ There is concern that the railway could repeat these patterns, especially given the weak state oversight and ongoing dismantling of environmental licensing frameworks in Brazil.¹⁷

Social concerns revolve around the potential for forced displacement, loss of livelihood, and disruption of traditional knowledge and practices for indigenous groups and other traditional communities living along the proposed routes.¹¹ The lack of transparency about the full assessment of commercial, social, and environmental impacts has been a persistent criticism.¹¹

While proponents argue that railways are generally more environmentally friendly than highways and that the project aims for sustainable development by reducing greenhouse gas emissions compared to road transport, the scale and location of this project demand rigorous environmental and social safeguards.³ The feasibility study is expected to account for these significant environmental hurdles, but both parties remain in the study phase and have not made final commitments on environmental mitigation.⁶

8. Conclusions

The Brazil-Peru-China transcontinental railway project represents a strategic and ambitious endeavor with the potential to significantly reshape trade flows between South America and Asia, offering a direct trans-oceanic link that bypasses the Panama Canal. The renewed commitment, particularly evidenced by the July 2025 Memorandum of Understanding between Brazil and China and the operationalization of Peru's Chancay Port, signals a determined effort to advance this long-envisioned infrastructure. The economic drivers are clear: reduced shipping times and costs for Brazilian commodities, enhanced market access for both South American and Asian economies, and the stimulation of regional development.

However, the project's path forward is fraught with substantial challenges. The estimated cost, exceeding $70 billion, demands immense financial commitment and raises questions about long-term viability and funding mechanisms. Logistical complexities, particularly traversing the Andes and the Amazon, necessitate advanced engineering and careful planning. Crucially, political and coordination obstacles, including historical clashes over technical standards and recent concerns about Peru's formal involvement in key agreements, underscore the need for robust, transparent, and inclusive trilateral governance.

Perhaps the most critical considerations revolve around the profound environmental and social impacts. The proposed routes through the Amazon rainforest and proximity to indigenous territories raise serious warnings about deforestation, biodiversity loss, and the displacement of local communities. The historical patterns of destruction associated with large-scale infrastructure in the Amazon, coupled with concerns over weak environmental oversight, demand that environmental and social safeguards are not merely considered but are rigorously implemented and consistently monitored.

In conclusion, while the vision of a transcontinental railway connecting Brazil, Peru, and China holds immense promise for economic integration and trade efficiency, its realization hinges on the ability of the involved nations to effectively address the formidable financial, political, and environmental hurdles. The current feasibility study phase is critical, requiring comprehensive and transparent assessments that genuinely incorporate social and environmental considerations alongside technical and economic viability. The success of this mega-project will ultimately depend on sustained political will, robust trilateral coordination, and an unwavering commitment to sustainable development practices that balance economic aspirations with ecological and social responsibilities. Without these foundational elements, the grand vision risks remaining an unfulfilled ambition.

Works cited

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