The Paraguayan government is carrying out pre-feasibility studies to structure a project to build a railway connecting the country with Argentina and Brazil, transport minister Efrain Alegre told BNamericas.
The rail line will connect Paraguay's eastern Ciudad del Este city, Pilar town in Ńeembucu state, Brazil's Itapua department, and Argentine town Formosa.
Brazilian authorities are supporting the initiative by carrying out studies for the Ciudad del Este-Brazil stretch.
One of the factors the studies aim to determine is the impact the railway would have on Paraguay's grain production and trade, the minister said.
Studies will also be carried out to determine the gauge to be used for the railway. Brazil and Argentina use different rail gauges, so the project would have to involve a transfer system.
The type of financing required for the project has also yet to be defined, but it is likely to be a mixed initiative, using public and private funding, Alegre said.