BOOST ECONOMIC INTEGRATION OF S. AMERICA
The transcontinental railway project, which will cut across the Andes and connect port cities on the Pacific and Atlantic coasts of South America, is believed to boost the integration of this continent.
"Due to the barrier of the Andes, the Southern Common Market and the Pacific Alliance, two major regional trading zones, haven't been able to cooperate enough ... " said Marne Lieggio Junior, an official at Brazil's Ministry of Transport.
"The transcontinental railway will make a difference and establish closer links within the zones if completed," Lieggio said.
Bolivian President Evo Morales said that the railway will not only link the two oceans, but also connect the Paraguay River and the Parana River, two main water transportation systems in the region, benefiting most South American countries.
An official from Paraguay said Paraguay, Argentina and Uruguay will also benefit if this project is completed.
"Railway transportation would definitely save time and money compared with that of freighters," said Oscar Gonzalez Drakeford, president of the Industry, Trade, Tourism and Cooperative Commission at Paraguay's House of Representatives.
PROMOTE LAT-AM AND CHINA CONNECTION
Another direct impact of this project is that it will further promote the connection between Latin American and Asian markets by reducing the cost of exporting goods from Brazil to Asia and bringing more business to Peruvian ports.
This new railway will cut the cost as well as the time for the transportation of Brazil's exports to China, Hsia said, comparing it with the current shipping route that starts from the Brazilian Pacific coast, rounds the southern tip of Argentina, and then heads up to Asia.
The railway will go across the agricultural heartland of Mato Grosso State, Para State, which is rich in mining resources, and Amazonas State, which is famous because of its large tropical rain forests.
The transcontinental project will facilitate Brazil's exports of grain and meat to China, among other staple commodities, Hsia said.
Valdemar Carneiro Leao, Brazilian ambassador to China, said that this project will yield win-win results for all parties involved.
"It will boost Brazil's exports by connecting Brazil to the Asian market and cutting transportation costs. China can also get those products at lower prices," Leao said.
The railway will bring 21 million tons of cargos to Peruvian ports for the Asian market at its initial operation, and in the long run, the number is expected be more than 35 million tons, according to estimated data from Peru's government.
Bilateral trade between China and the Latin American and Caribbean countries in 2014 stood at 263.6 billion dollars, up 0.8 percent year on year, Ministry of Commerce data showed.
Both sides aim to double the annual trade volume to 500 billion dollars in ten years and China has promised to increase investment in the region to 250 billion dollars during the same period.
