Other Logistics

Ferrogrão railway project, spanning 993km, submitted for analysis by court

Jul, 13, 2020 Posted by datamarnews

Week 202028

On July 10, the National Land Transport Agency (ANTT) submitted the Ferrogrão railway project for analysis by the Federal Audit Court. The new railway will link Sinop, in the north of Mato Grosso to Itaituba, in Pará.

On July 7 the plan, accompanied by technical studies and a draft of the public notice and contract, had been signed by the Minister of Infrastructure, Tarcísio Gomes de Freitas. Now, it is up to the court to analyze the documentation before the bidding notice can be published later this year.

“Today, more than 70% of the Mato Grosso harvest is transported via the ports of Santos / SP and Paranaguá / PR, more than two thousand kilometers from the origin. This scenario shows the importance of the project within the country’s freight logistics system, and why it is attractive to potential investors ”, declared Tarcísio Freitas.

The Ferrogrão railway project will be one of the most important roads in the country and one of the most awaited assets by investors. With a length of 933 km, it will serve to provide transportation for corn, soybeans and soybean meal from the state of Mato Grosso, as well as soybean oil, fertilizers, sugar, ethanol and petroleum products. Investments of R$8.4 billion are expected in the concession project.

Its implementation will consolidate Brazil’s new export rail corridor through Arco Norte, connecting Sinop (MT) to the Port of Itaituba (PA). The Santarenzinho branch, between Itaituba and Santarenzinho, in the municipality of Rurópolis (PA), spanning 32 km, and the Itapacurá branch, measuring 11 km, are also planned. The project addresses the expansion of the Brazilian agricultural frontier and the demand for an integrated cargo transport infrastructure. The project will alleviate traffic conditions on the BR-163 / PA, reducing the flow of heavy trucks and the costs of conservation and maintenance.

According to the minister, “the railway strategy intends to rebalance the transport matrix and double the participation of the railway mode in eight years. We are going to bring innovations to the regulatory framework in a way that facilitates more private investment,” he said. Currently, rail transport corresponds to 15% of the Brazilian transport matrix. The goal is to reach 30% in the coming years.

 

 

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