Rail corridor connecting the Atlantic and Pacific Oceans

By Espinosa Bellido Abogados

Peru, Brazil and China have signed an agreement to initiate joint studies for the construction of a rail corridor connecting the Atlantic and Pacific Oceans.

On the Brazilian side, the Bioceanic Railway will begin in the city of Lucas do Rio Verde, in the state of Mato Grosso, and pass through the border with Bolivia, cross the entire state of Rondônia, and continue through southern Acre, near the Peruvian border. From there, the line will extend to the port of Chancay, built by China and inaugurated three months ago.

The Bioceanic Railway will be part of the South American Integration Routes, a project led by Brazil’s Ministry of Planning and Budget. Launched in 2023, the initiative prioritizes works under the Growth Acceleration Program (PAC) to connect road, river, and rail networks in border areas between neighboring countries.

Today, the entire route of the future Bioceanic Railway is served by Brazilian and Peruvian federal highways, with full integration via Brazil’s BR-364 and BR-317 roads and Peru’s Irsa Sur highway, extending to Chancay, just 70 kilometers from the Peruvian capital, Lima.

Funded by a USD50 billion Chinese investment, the Bioceanic Railway is a bold forward-looking initiative. The partnership among Brasil, Peru, and China aims to enhance South America’s integration with the Asian market by reducing the export route to China by 10,000 kilometers, bypassing the Panama Canal through more direct corridors.

Before the opening of the port of Chancay, trade between Peru and China was primarily handled through Peru's Port of Callao. With Chancay Port now operational, more container shipping services have been introduced along the South American west coast, reducing shipping time between Peru and China to around 23 days -- much faster than the current market average.

The launch of the new route is expected to enhance the entry of Peru's fresh fruits and other products into the Chinese and Asia-Pacific markets.