The $US 250m railway will serve a new fertilizer plant at Bulo Bulo, which is being constructed by Samsung. Around 20% of the plant's annual output of 1 million tonnes is forecast to be consumed domestically with the rest being exported to Brazil via the border crossing at Quijarro or Argentina via the border station of Pocitos.

The line is being built by Chinese companies, with Spanish contractor Yapilo constructing three major bridges.