Chinese investors are advancing a rail project to link ports in Brazil with those in Peru. The proposed line, which will be 5,310 km long, would carry both agribulk and minerals.
China's Prime Minister, Li Kegian, recently discussed the project with Ollanta Humala, president of Peru, on the basis that it will reduce transport costs for freight between Asia and South America. Currently, the vast majority of Chinese imports pass through the Panama Canal, where costs have tripled over the past five years.
However, the proposed $10bn line would also pass through ecologically sensitive areas, which has put investors on a collision course with ecologists. Indeed, the so-called southern route would involve building track in the Isconahua national park, while a more northerly alternative would put a heavily bio-diverse area of Peru in danger.
The main beneficiary would be the Port of Santos, the proposed Brazilian terminus on the Atlantic coast.
