China invest US$53 Billion to Strengthen Stake In Brazilian Infrastructure Projects

China invest US$53 Billion to Strengthen Stake In Brazilian Infrastructure Projects

China and Brazil have continued to discuss details of new projects, following Prime Minister Li Keqiang visit, which culminated in the announcement of US$53.3 billion of investment towards a new train factory, shipyard and technical training school in the South American country.

Governor of Rio de Janeiro Luiz Fernando “Pezão” met with Chinese government officials, China National Import and Export Co. and directors from CNR Changchun Railway Vehicles Co., to formalise agreements and discuss a cooperative strategy to upgrade Brazilian infrastructure.

“The partnerships as a result of the visit of Chinese Prime Minister, put Rio as a gateway for Chinese investment in Brazil. This will result in generation of employment and income, and the opportunity to transform our state in the center of professional training for the rail system throughout Brazil”, the Rio governor explained.

The CNR Corporation, current suppliers of trains for MetroRio, have reaffirmed their commitment to instal a train factory in Rio de Janeiro. As part of the agreement, the Foundation for the Support of Technical School (FAETEC) was also agreed, which will lead to the creation of a technical school focused on training and personnel training for the railway industry.

According to the government, the agreement with CNR also includes the company’s participation in the new railway project ES-118 Rio-Victoria in partnership with the states of Rio de Janeiro and Espirito Santo. The CNR also expressed interest in participating in the financing and execution of the renovation of the 270 km rail network of urban trains of the greater Rio area.

“Agreements with China also represent a new opportunity for improvements to mass transit in the metropolitan region and help consolidate the new railway project Rio-Victoria, which is strategic to transform Rio into a large logistics center in the Southeast and consequently from [all of] Brazil,” said State Transportation Secretary Carlos Roberto Osorio, who also attended the meeting.

The company NCC International, one of the largest construction companies and suppliers of heavy equipment in the world, will install a division in Rio de Janeiro to participate in heavy construction and sanitation projects in Brazil. Chinese entrepreneurs showed interest in participating in the financing of sanitation programs that the state intends to develop in the Baixada Fluminense and São Gonçalo.

Already the company China Shipbuilding Industry Corporation, the Chinese group holding company that is providing new barges to operate in Rio’s waterway system proposed to set up a shipyard in the state. The base of operations in Rio may also meet other Brazilian and South American markets.