China and Peru have agreed to study the feasibility of a controversial 5,300 km (3,300 miles) transcontinental railroad that will connect Peru's Pacific coast with Brazil's Atlantic coast, China's official Xinhua News Agency reported. The agreement came as Chinese Premier Li Keqiang arrived in Peru, on the third leg of a Latin America visit. This week, Brazil and China agreed on a feasibility study for the rail link.
The proposed railway would span the Andes to the Pacific and reduce the cost of shipping grain and minerals to Asia. China and Latin America would each benefit from the project by upgrading infrastructure, while allowing China to export its "industrial capacity" and investment, the news agency said.