ASSESSMENTS
Getting Brazil's Infrastructure Back on Track
Dec 15, 2017 | 09:00 GMT
![Bolivia and Brazil have an agreement to build a rail line through Bolivia that would connect the Peruvian port of Ilo with Brazil's rail network.](https://worldview.stratfor.com/sites/default/files/styles/2x1_full/public/temer-morales.jpg?itok=sykzB-En)
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.
(EVARISTO SA/AFP/Getty Images)
Highlights
- Inadequate transportation infrastructure connecting Brazil's grain-producing midwestern states with the country's northern ports adds logistical costs that hold back agricultural exports.
- Financing and other issues inflicted by the corruption scandal that engulfed major Brazilian engineering firms derailed construction on previous infrastructure projects.
- Over the next year, however, Brazil's government will auction construction rights for two major railways that would connect the country's grain-exporting regions with those ports.
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