The proposed transcontinental railway linking Brazil to Peru would expand the trade between the two countries by US$10 billion, said Brazilian Ambassador to Peru, Carlos Alfredo Lazary.

Chinese state-run news agency Xinhua quoted him saying on Monday that the undertaking of the huge project would turn Peru and Brazil into “competitive logistical centres”, enabling the transportation of non-traditional, value-added products.

After an official visit by Chinese Premier Li Keqiang to Brazil and Peru respectively last month, the three nations agreed to carry out a feasibility study for such a railway. The proposed route, which is about 5,000 kilometres long, would incorporate 2,000 kilometres of existing railway, according to the report.

“When the railway is up and running with the financial help of China, it will contribute to consolidating integration and trade [between Brazil and Peru],” Xinhua cited Mr Lazary saying, adding the current value of trade between the two nations stands at about US$3.6 billion a year.