Bolivia and Brazil have struck an agreement to build a rail line connecting the Brazilian midwest with the Peruvian port of Ilo. Other rail options may be less costly for Brazil, however.
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Brazil's breadbasket is centered in its fertile midwestern highlands with their subtropical climate conducive to growing grain. But given the poor transportation infrastructure connecting those grain-producing regions with major ports on the northeastern coast, Brazilian corn and soybeans often do not follow the most efficient route to export destinations. Considering the importance of agriculture to both Brazil's gross domestic product and its total exports, improving the efficiency of road and railway networks has been a priority for the country. Action on infrastructure projects until now has been derailed, but that is changing....
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