Other Logistics

Cascavel to be logistics hub for Nova Ferroeste

Mar, 29, 2021 Posted by Ruth Hollard

Week 202113

Cascavel, Paraná’s main soybean producer in the west of Brazil, will be the logistics hub for Nova Ferroeste. According to preliminary layout and demand studies, the expectation is that more than 8 million tons of grain will pass annually through the transshipment terminal already installed in the city.

The estimate is part of the technical documentation on the modal presented on March 25 for part of the municipality’s productive sector, in a meeting at the headquarters of ACIC (the commercial and industrial association of Cascavel). The railway that will connect Maracaju (MS) to the Port of Paranaguá will be 1,285 kilometers long.

“Because of its geographic location, Cascavel will be the major pole for attracting cargo in Paraná. Not to mention that the municipality already has a structure established with the Cotriguaçu terminal, which handles about 4000 to 5000 containers per month”, highlighted the coordinator of the Railway Work Group of the State of Paraná, Luiz Henrique Fagundes. “For all these reasons, Cascavel is without a doubt the logistics hub of Nova Ferroeste”.

The preliminary study assessed the existence of five terminals along the railroad. In addition to Cascavel, the other 4 terminals are: Aracaju (the project’s ground zero) with the potential for transshipment of approximately 6.5 million tons/year of grains; Amambai (MS), handling 4.5 million tons/year; Guaíra, handling just over 4 million tons/year; and Foz do Iguaçu, handling approximately 2.5 million tons/year.

Ferroeste’s CEO and one of the project coordinators for the new railway axis, André Gonçalves, explained that there is still no definition of the locations where the terminals will be installed. According to him, it is the private entity that finishes the concession that will decide the geographic positioning.

The expectation is to put the railroad up for auction on the Brazilian Stock Exchange (B3), headquartered in São Paulo, by November 2021. The consortium that wins the bid will also be responsible for the works.

“The preliminary study presents some conditions, an analysis of certain locations. But in the end, it is the market that will decide, together with the company that wins the concession ”, he said. “However, one thing is certain: Cascavel will be the protagonist”.

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