Project Envisions Connection Between Porto Sul (Bahia) and Chancay (Peru)

On May 21, 2025, Brazil’s Minister of Transport, Renan Filho, held a strategic meeting with representatives from China’s National Railway Administration (NRA).

The primary goal was to strengthen bilateral cooperation in the railway sector, aiming to advance infrastructure projects that could transform logistics in Brazil and across South America.

The meeting highlights the growing importance of Brazil-China relations, particularly in strategic areas such as transportation, where Chinese expertise and international capital are seen as essential to enabling large-scale infrastructure developments.

Key Infrastructure Projects

The meeting focused on two major railway projects currently underway in Brazil:

• Central-West Integration Railway (FICO): Spanning 383 km, this railway will connect Mara Rosa (GO) to Água Boa (MT), linking the agribusiness sector of the Central-West to the national rail network and facilitating exports through ports in the Southeast and Northeast. Vale is building the project as a counterpart to the early renewal of the Vitória-Minas Railway concession.
• West-East Integration Railway (FIOL): With a planned length of 1,527 km, divided into three segments, this railway connects western Bahia to Tocantins. The Ilhéus-Caetité segment is in its final construction phase and is operated by Bahia Mineração (Bamin). The remaining segments are still under development.

These railways are crucial for expanding Brazil’s logistics capacity, connecting key production regions to port infrastructure, lowering transportation costs, and enhancing the competitiveness of Brazilian exports.

Bioceanic Corridor

Both railway projects are part of a broader initiative to establish a bioceanic corridor linking Porto Sul, in Bahia, to Chancay Port, in Peru. This route will mark a major milestone in South American logistics integration, creating a direct connection between the Atlantic and Pacific Oceans.

The corridor is expected to shorten distances and reduce shipping costs for Brazilian commodities, particularly for the Asian market, with a special focus on China, which has expressed strong commercial interest in the region.

Strategic Role of Ports

• Porto Sul (Bahia): Positioned as Brazil’s departure point, Porto Sul will be integrated with both the FICO and FIOL railways. It will boost export flows through the coast of Bahia and connect inland regions to international trade routes.
• Chancay Port (Peru): Currently under construction with Chinese participation, this port is expected to become a key gateway for trade with Asia, especially China, and serve as the Pacific-side anchor of the bioceanic corridor.

The complementarity between these ports is crucial to ensuring the efficiency and competitiveness of the new logistics route.

China’s Interest and Participation

The National Railway Administration of China has expressed interest in participating in bidding processes for Brazilian railway concessions and is reviewing the technical studies presented by the Brazilian government. China sees this collaboration as an opportunity to expand its footprint in strategic logistics projects, contributing capital, technology, and expertise.

The Brazilian government, for its part, aims to attract foreign investment and technical expertise, accelerating the progress of infrastructure projects and modernizing the national transportation network.

Challenges and Next Steps

Despite its promise, the project still faces several challenges:

• Finalizing the exact route of the bioceanic corridor, which may also involve countries such as Bolivia and Paraguay.
• Securing funding and structuring railway concession auctions.
• Ensuring technical and regulatory harmonization among participating countries.

The Ministry of Transport has already announced further rounds of negotiations to deepen technical studies and define partnership models, reinforcing cooperation with China.

Source: Tribuna de Minas

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