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China is aimed at boosting Brazil’s infrastructure
Plenty of industries in Brazil require significant investments for the further development. The government got lots of applications. Because of the fulfillment of certain infrastructural projects, the situation for the project cargo carriers can be changed for the better.
The fund, which is responsible for the applications, is known as the China-Brazil Cooperation Fund for the Expansion of Production Capacity. They started to receive applications in summer 2017. The organization has various sources of financing, but the key one is China. China is very interested in the development of ports, roads, railways, and other facilities in Brazil. It is connected with the fact that it will allow Asia getting the raw materials at low prices. Besides, the transportation of the manufactured products will also become easier.
In November 2017, the first applications were obtained, while 21 more were on their way. As the specialists hope, it will have a very positive impact on the development of the country.
The greatest investment was made by China-LAC Industrial Cooperation Investment Fund. They gave $15 billion. Other investments were made by the Brazilian Development Bank and other organizations, such as state-owned and private banks.
The current situation with Brazilian infrastructure
Infrastructure is connected with transport, roads, railways, various communication systems, power, water, and public organizations. Brazil is the developing economy, thus, its infrastructure is still under development. The highway system of the country is now one of the largest in the world. It is used for both passenger and cargo transportation purposes, which makes Brazil a significant transportation center. The expansion of the roads continues in order to link the industrial sectors with the remote areas of the country. Brazil owns 4 rail gauges (narrow/dual/standard/broad). The railways are controlled by both private and state organizations. Airways are in a good state. There are about 300 airports, 50 of which are significant commercial ports. Over 20 airports are international. The territory of navigable waters of the country totals 50 000 kilometers. The number of seaports and harbors reaches 15 (including 2 major ones on Amazon River). The infrastructure still needs development and investment.