The proposed interoceanic railway project has been Brazil's longtime dream, a Brazilian minister said here on Wednesday.

The Brazilian government will study the routes of the transcontinental railway that will connect Peru's Pacific coast with Brazil's Atlantic coast, and minimize its impacts on Brazil's rain forests, Environment Minister Izabella Teixeira told a press conference.

The federal government will discuss, with state governments, about the routes of the railway which is expected to reduce the cost of transportation in Brazil, Teixeira said.

This will be a win-win situation for Brazil and the countries that buy Brazilian products, the minister said.

Highways have a much higher environmental cost than railways, Teixeira said.

"By working with railways, we are hoping to avoid the consequences of highways which lead to deforestation. Railways have a smaller impact when it comes to deforestation," Teixeira said.