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In an unprecedented initiative, Mato Grosso do Sul is about to inaugurate Brazil's first shortline railway, connecting Arauco's Sucuriú Project to the Malha Oeste. With an investment of US$ 4,6 billion, the project promises to revolutionize cargo transportation and boost the regional economy, positioning the state at the forefront of national logistics.
In the heart of Brazil, where vast expanses of land meet development opportunities, a railway initiative promises to transform logistics and the regional economy.
Although the details are still being defined, expectations are high for a project that could redefine cargo transportation in the country.
The government of Mato Grosso do Sul, in partnership with the Ministry of Transport, is advancing plans for the construction of a 47-kilometer railway section that will connect the Sucuriú Project, owned by the Arauco company, to the Malha Oeste.
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The National Land Transport Agency (ANTT) is analyzing the authorization request, and official approval is expected to occur by the end of March.
Arauco plans to start construction in September this year, with an estimated investment of US$4,6 billion.
This project aims to facilitate the export of cellulose, connecting local production to the main international markets.
The first shortline in Brazil
This new rail stretch has the potential to become the country’s first “shortline,” a concept widely used in the United States to designate short-distance railroads that connect local industries to main rail lines.
The recent regulation of the legal framework for railways in Brazil has paved the way for this type of operation, and Arauco's initiative could serve as a model for future concessions.
Revitalization of the Western Network
In addition to the construction of the new section, the revitalization of the Malha Oeste is a priority.
The plans include the rehabilitating of the section between Corumbá and Porto Esperança, the re-ribbling of the line between Campo Grande, Ribas do Rio Pardo and Três Lagoas, and the construction of a new segment connecting Três Lagoas to Aparecida do Taboado, integrating with Suzano's operations.
The Federal Court of Auditors (TCU) is evaluating the project, and, if approved, investments should begin in the second half of 2025, with completion scheduled for 2026.
Economic and logistical impact
The expansion of railway infrastructure is seen as crucial for the economic development of Mato Grosso do Sul, especially for the pulp and biofuels sectors.
Rail transport is considered a strategic element to guarantee the state's competitiveness, improving the flow of production to the Port of Santos and boosting logistics and the regional economy.
Investments and expectations
The re-auction of the Malha Oeste foresees an investment of R$ 18 billion over 60 years, with the concession of more than 1.600 kilometers of railway between Corumbá (MS) and Mairinque (SP).
The re-bidding notice is scheduled for the first half of 2024, and the expectation is that investments will begin in 2027, with significant improvements in the railway infrastructure.
Challenges and prospects
Although the plans are ambitious, there are challenges to be overcome.
The need for modernization of rail network existing and the guarantee of continuous investments are critical points for the success of the projects.
However, with the support of the state and federal government, in addition to the interest of private companies, the prospects are promising for the transformation of railway logistics in Mato Grosso do Sul.
For experts, the implementation of Brazil's first shortline railway and the revitalization of the Malha Oeste represent significant steps towards strengthening the country's transport infrastructure.
These initiatives not only improve logistical efficiency, but also boost regional economic development, positioning Mato Grosso do Sul as a strategic hub in the national railway scenario.
Rail transport is a major technical advance for developing various sectors of the economy, both regionally and nationally. The country has everything to gain from growing and developing aggregated businesses. Congratulations on the initiative. I hope these projects continue.
With the development of roads, rail transport was left aside. After the privatization of RFFSA, the rail system became even more fragmented (isolated), with abandoned railways and packing stations. Now, with the privatization of railways, private managers have a preference for cargo, for greater profitability. It is necessary to give importance to rail passenger transport, as it is also important. The heavy traffic of trucks and passenger vehicles on the highways is causing many fatal accidents.
18 billion in 60 (sixty)
This does not exist
It will be the “Angra power plant” for all governments to be able to steal from an eternally unfinished project.