Bi-Oceanic Corridor Would Boost Export

Bi-Oceanic Corridor Would Boost Export

New plans are called to create a bi-oceanic corridor with the agreement made between Brazil, Peru, and China in the hopes to reduce trade costs and shipping times.

Read: Why collaboration is essential for today.

About Bi-Oceanic Corridor

The railway corridor will run through the Amazonian forest (around 2500-3000 km), connecting Brazil key points and Peruvian ports. the whole project is backed by investments up to $17 billion and expected to complete within 6 years, covering the construction and major infrastructure to give the countries a boost in trading capacity.

Bi-Oceanic Corridor
Source: Construpages

The plan is intended to serve dual purposes between these countries, where trains to west will carry raw materials to be shipped to China, while to the east consist of manufacturing goods imported from China.

Read: How China is set to step up their game by being accommodating with other countries.

Based on the agreement, both Brazil and Peru will evaluate the feasibility of the project on environmental and social factors, while China will assist on logistics, track construction and equipment required for the project.

The Benefits Coming From Bi-Oceanic Corridor Project

This project is expected to reduce costs related with shipping between these countries, while no predicted change in trade value over $80 billion, hence larger margin in profits. Plus, it serves a different look as typical Brazilian railways usually extends from north to south and rarely extends into the mainland.

In a way, the project is beneficial in improving overall economy of South America, where the products can be shipped faster and more efficient, and certainly they are fresh, without increasing significant cost.

Further reading: What are the benefits of exporting?

Reference: 1,2

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