The minister also said that as part of the deal the first rail construction company in Latin America will be installed in Venezuela using 'Venezuelan iron and Chinese technology'.

Factories to build train wagons, sleeper cars, switches and rail-welding equipment also will be set up, all with Chinese technological support.

A series of joint ventures will be set up for the technology transfers, with Venezuela having a 60 percent stake and state-owned China Railway Engineering Corporation a 40 percent stake.

The agreement was signed by the president of the Autonomous Railway Institute of Venezuela, Franklin Perez, and the vice president of the Chinese consortium, Bai Zhong Ren.