China and Peru agree to study transcontinental rail link feasibility plans
Premier Li Keqiang and Peruvian President Ollanta Humala agree a range of financial, trade and infrastructure deals including proposed train project that would also include Brazil
China and Peru have agreed to study the feasibility of a controversial 5,300km transcontinental railroad that will connect Peru’s Pacific coast with Brazil’s Atlantic coast, China’s official Xinhua News Agency reported on Saturday.
The agreement came as Chinese Premier Li Keqiang arrived in Peru, on the third leg of a Latin America visit. Earlier this week, Brazil and China agreed on a feasibility study for the rail link.
In talks with Peruvian President Ollanta Humala on Friday, Li called for cooperation in the oil, clean energy, mining, agriculture, forestry and fishery sectors, the news agency said.
Li also said the two governments should cooperate on financial issues, including a method to carry out trade settlement in local currencies, and a currency swap scheme.
The proposed transcontinental railway would span the Andes to the Pacific and reduce the cost of shipping grain and minerals to Asia.