Reuters reports that China plans on making a billion-dollar investment in port of Sao Luis via China Communications Construction Company, in Brazil, part of the largest foreign direct investment into Brazil this year.
The announcement will be made during the meeting of leaders from Brazil, Russia, India, China and South Africa, the BRICS group of emerging nations.
In light of this development, Economy Minister, Paulo Guedes, reported that Brazil aims to a closer relation with China focusing on both trade and investments.
The cornerstone of the Brazilian port was laid in March 2018, and according to Xinhua, the CCCC led the project with a 51% equity stake in the venture, alongside Brazil’s WPR, construction group WTorre, and investment firm Lyon Capital.
Port of Sao Luis also signed a dry cargo deal with the Panama Canal Authority in late 2018. The specific port is the closest Brazilian terminal to the Panama Canal and has the features needed, such as infrastructure and connectivity, for transferring cargo to Asian markets.
On the other hand, China is also investing more in its trade relations with other countries, keeping in mind that by visiting Greece, Chinese President Xi Jinping inked an agreement to boost port of Piraeus with 600 million euros by COSCO shipping.
Concluding, the port serves the central, northern and southeastern areas of Brazil and is connected by the Norte-Sul/Carajas railway.
