State of Rio Announces New Investments by China

RIO DE JANEIRO, BRAZIL – Following an announcement on May 19th that investment agreements worth US$53.3 billion will be made by China in Brazil, the State if Rio de Janeiro is seeing some impact. At a meeting held on Friday (May 22nd) at the Guanabara Palace, the governor Luiz Fernando “Pezão” met with Chinese representatives to formalize plans for the installation of a train factory, a shipyard and a technical school.

According to a government report, Pezão met with representatives of the Chinese government and the CNR Corporation Limited, CNR Changchun Railway Vehicles Co. Ltd. and China National Import and Export Corporation to agree on the new investments in Rio.

“The partnerships as a result of the visit of Chinese Prime Minister, put Rio as a gateway for Chinese investment in Brazil. This will result in generation of employment and income, and the opportunity to transform our state in the center of professional training for the rail system throughout Brazil.” said the governor.

The company NCC International, one of the largest construction companies and suppliers of heavy equipment in the world, will install a division in Rio de Janeiro to participate in heavy construction and sanitation projects in Brazil. Chinese entrepreneurs showed interest in participating in the financing of sanitation programs that the state intends to develop in the Baixada Fluminense and São Gonçalo.

Already the company China Shipbuilding Industry Corporation, the Chinese group holding company that is providing new barges to operate in Rio’s waterway system proposed to set up a shipyard in the state. The base of operations in Rio may also meet other Brazilian and South American markets.

Regarding the subway-railroad sector, the CNR Corporation, a provider of Chinese compositions for trains and subway Rio, reaffirmed the commitment to install a train factory in Rio de Janeiro. Also a partnership with the Foundation for the Support of Technical School (FAETEC) was also signed for the creation of a technical school focused on training and personnel training for the railway industry. The programs would cover training and qualification of professionals in metro rail area, as well as youth technical training for entry into the sector.

According to the government, the agreement with CNR also includes the company’s participation in the new railway project ES-118 Rio-Victoria in partnership with the states of Rio de Janeiro and Espirito Santo. The CNR also expressed interest in participating in the financing and execution of the renovation of the 270 km rail network of urban trains of the greater Rio area.

“Agreements with China also represent a new opportunity for improvements to mass transit in the metropolitan region and help consolidate the new railway project Rio-Victoria, which is strategic to transform Rio into a large logistics center in the Southeast and consequently from [all of] Brazil,” said State Transportation Secretary Carlos Roberto Osorio, who also attended the meeting.