Future railroad can accelerate export of sugar

Cooperation plan signed on Tuesday (19/05) between President Dilma Rousseff and Chinese Prime Minister Li Keqiang, provides 35 agreements until 2021. Among them is the one which talks about studies for building a railroad to link Brazil to Pacific Ocean, passing through Peru, called Transoceanic Railroad.

“The railway will cross the country from east to west, so the continent, because will link the Atlantic Ocean to the Pacific. It is a new way that will be open to Asia, reducing distances and costs. A new way that will lead us directly to the Pacific, to China’s ports, “said Dilma, in a press statement after the signing of agreements with the Chinese.

The reduction of distances and costs permitted by the future railroad matters a lot to the Brazilian sugarcane industry. This is because China is a potential customer of sugarcane. In the first four months of the year, for example, the Chinese were the second largest importer of Brazilian sugar, just behind Bangladesh.

From January to April, China imported US$ 264,2 million FOB (to port) in Brazilian sugar, up of 14,20% over the same food volume imported in the first four months of 2014.

So if the lower logistics and reduced costs propel this market, the sugarcane industry has to celebrate with the cooperation plan signed on Tuesday.

The plan also has cut-off date, 2021, allowing a horizon on investments to be made in the future railroad. It is unknown until Tuesday afternoon, who will operate the rail system. Will it be the Chinese, a Brazilian state? Or management will be delivered through public-private partnership for an industry company?

Waiting for new chapters, the Transoceanic Railroad novel is just at beginning. And favors, at least in part, the business of the sugarcane industry.

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