[Source/Author: Tiago Nogara from Observer Network]
In the context of the sudden imposition of "reciprocal tariffs" by the Trump administration and various forms of coercion against third countries, Brazil and China have recently strengthened bilateral cooperation. Over the past half month, the two countries have carried out a series of joint actions: The China-Brazil Economic and Trade Exchange Forum was held in São Paulo, and both governments discussed the construction of the "Two-Ocean Railway" project. This railway aims to connect the newly built port of Chinca on the Pacific coast of Peru with the Atlantic coast of Brazil.
The project plans to construct a railway corridor spanning the Brazilian states of Bahia, Goiás, Mato Grosso, Rondônia, and Acre, enabling central Brazil's goods to be transported via Atlantic ports in Brazil or the Pacific port of Chinca in Peru. This will reduce the transportation time for Brazil's main exports to China, such as soybeans and iron ore, by up to ten days—these two categories account for the majority of Brazil's exports.
Scene of the meeting between Brazilian officials and the Chinese government delegation. Photo credit: João Villaverde, Social Media Account of the Coordination Secretariat of the Ministry of Planning of Brazil.
A few days ago, the Chinese government delegation visited Brazil to conduct technical assessments of key logistics infrastructure related to the "Two-Ocean Railway" project, focusing on the East-West Integrated Railway (Ferrovia de Integração Oeste-Leste, FIOL), the Central-West Integrated Railway (Ferrovia de Integração do Centro-Oeste, FICO), and the South Port Marine Terminal.
The currently under-construction FIOL freight railway spans over 1500 kilometers across Bahia State, connecting the inland mining city of Caetité with the Atlantic port city of Ilhéus (green line in the map below); the FICO railway connects the agricultural hub of Mato Grosso State with FIOL, forming a strategic east-west logistics corridor through Brazil's interior; the new deep-water terminal at the South Port in Ilhéus is under construction, which will handle bulk cargo transport from the above railway lines and become an important export hub.
The Chinese delegation also inspected key hubs in Goiás State—the intersection of the Central-West Integrated Railway (FICO) and the North-South Railway (Ferrovia Norte-Sul) (black line in the map below), as well as areas near the planned westward extension (toward the Peruvian border) in Rondônia State. Brazilian officials confirmed that China will initiate the latest feasibility study for the "Two-Ocean Corridor" project, and both countries once again emphasized the strategic significance of connecting Brazil's interior production areas with the Pacific coast of Peru.
Red line represents the "Two-Ocean Railway," black line represents the North-South Railway, green line represents the East-West Integrated Railway, and blue line represents waterways. Map source: Leolino Dourado.
This visit is also considered preparatory work for President Lula's May visit to China, where both sides are expected to reach more agreements on infrastructure cooperation.
Although the project remains in the planning stage, it has already gained strong political momentum and is expected to be financed through multilateral channels, including the New Development Bank of BRICS (NDB), policy financial institutions such as the China Development Bank, and the Brazilian National Economic and Social Development Bank (BNDES).
Building the "Two-Ocean Railway" has long been a goal of advocates for deeper integration in South America. It not only relates to strengthening internal economic and trade ties within the region but also enhancing connectivity with other parts of the world. This urgency can be seen by comparison: the United States completed its transcontinental railway system connecting the east and west coasts in the 19th century, while Brazil only opened a cross-ocean road to the Peruvian port in the past decade—but its commercial utilization remains very limited. To date, the country has not built any comparable railway routes.
The current round of consultations is deeply linked to reshaping the trade landscape in South America—this region is shifting its export focus to Pacific coastal countries, particularly Asian countries, with China at the core. The recent completion of the Chinca Port in Peru, part of the "Belt and Road" infrastructure agenda, clearly illustrates the scale of this transformation. Leveraging its strategic location on the Pacific coast and the ability to accommodate the largest cargo ships, this port will become a key logistics hub, significantly reducing shipping times between South America and Asia.
As China's largest trading partner in the region, Brazil views connecting the Chinca Port as a unique opportunity to optimize transportation efficiency and reduce export logistics costs while avoiding dependence on traditional routes like the Panama Canal. The new corridor not only aligns with South America's commercial ambitions but also ensures China's rapid and efficient access to Brazil's key export products, serving its strategic interests. It should be noted that Brazil is China's largest single food supplier globally, with soybeans, beef, corn, and other categories being particularly important. For Peru, the completion of the "Two-Ocean Railway" will boost the Chinca Port's position as a core node for South American exports to Asia.
Therefore, the project brings together highly complementary and convergent interests among the three parties. In the face of significant natural challenges posed by the Andes Mountains and the Amazon rainforest, China's technological expertise and engineering capabilities in railway construction and large-scale logistics become critical support. More importantly, incorporating the "Two-Ocean Railway" project into the "Belt and Road" framework vividly reflects the cooperative and win-win essence of the initiative and its role in driving systemic change—a cornerstone of building global partnerships.
It is worth noting that Brazil has always been a leader in promoting infrastructure connectivity and regional integration in South America. At the first Summit of South American Heads of State held in Brasília in 2000, Brazil initiated the South American Regional Infrastructure Integration Initiative (IIRSA). In 2009, this initiative was incorporated into the framework of the South American Union (UNASUR) Planning and Infrastructure Committee (COSIPLAN) to expand its scope and effectiveness. At its peak, IIRSA planned over 500 infrastructure projects covering transportation, communication, energy, and other sectors. However, with the dissolution of UNASUR, the overall regional integration process weakened, and the momentum of IIRSA gradually waned.
Brazil's current president is focusing on rebuilding dialogue mechanisms with neighboring countries during his new term, emphasizing the importance of strengthening regional trade ties and modernizing infrastructure. With Dilma Rousseff assuming the presidency of the New Development Bank of BRICS and the enhanced synergy of Sino-Brazilian cooperation, Brazil is demonstrating its willingness and capability to promote regional consensus.
Although negotiations are still in the mid-stage, the distinctive significance of the "Two-Ocean Railway" project lies not only in its scale and ambition but also in its strong symbolic meaning in today's international context: while officials of the Trump administration continue to escalate their tough rhetoric against China and propagate a zero-sum geopolitical narrative, Latin American countries remain steadfast in advancing development paths anchored by cooperative projects.
Chinese electric vehicles completing unloading at a port in Espírito Santo State, Brazil. The completion of the "Two-Ocean Railway" will greatly promote trade exchanges between China and Brazil.
If the "Two-Ocean Railway" is ultimately completed, it will add another milestone to China's major cooperative projects in Latin America. Across Latin America and the Caribbean, China's landmark projects include: modernization of the Belgrano freight railway in Argentina, the Belo Monte hydropower station in Brazil, the Chinca Port in Peru, the Coca-Codo Sinclair hydropower station in Ecuador, the Simón Bolívar satellite (Venesat-1) system in Venezuela, the north-south highway in Jamaica, and the Bridge over the Panama Canal, among others.
On the current international stage, two distinct models of state interaction are emerging, with Latin America and the Caribbean serving as the "frontline" where these models collide: when the United States sanctions governments with different ideologies within the region and issues threats to cut off cooperation with China, China chooses instead to deepen mutually beneficial partnerships without targeting third parties.
As the United States unilaterally reduces trade with China, Brazilian agricultural products are gradually filling the market gaps left by many key categories previously exported by the U.S. Contrary to the predictions of Washington hawks, this adversarial policy has not triggered a global "de-Chinese" trend but has instead fostered a new market system emphasizing mutual benefit and win-win outcomes.
And the "Two-Ocean Railway" will become a crucial driver of this historical process and undoubtedly another indelible testament to the friendship between the peoples of China and Latin America.
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