An R$800 million railway will connect Arauco's megafactory in Mato Grosso do Sul to the Port of Santos. The project promises to revolutionize logistics and consolidate the state as a powerhouse in the pulp industry. With a length of 46 km, the project will have an unprecedented environmental and economic impact. Find out how this initiative is transforming Brazil!
A mega pulp factory is about to change the course of railway infrastructure in Mato Grosso do Sul.
With an investment of R$800 million, the construction of an exclusive railway branch promises to connect the production of one of the largest companies in the sector to the Port of Santos, consolidating the state as a strategic hub in the national and international market.
But how did this revolution begin? And what does it mean for the local economy?
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Arauco's railway project
Arauco Celulose, a multinational company in the sector, requested authorization from the National Land Transport Agency (ANTT) to build a 46-kilometer railway branch.
The project will connect the company's factory, located in Inocência, to the Ferronorte railway line, enabling direct transport of production to the Port of Santos.
Arauco's intention is to explore this branch for 99 years, as published in the Official Gazette of the Union on January 2, 2025.
This billion-dollar investment is part of a broader strategic plan.
The Arauco unit in Inocência will have the capacity to produce 3,5 million tons of short fiber pulp annually, considered one of the largest in the world.
In addition, the plant will generate more than 400 megawatts of electricity, of which approximately 200 MW will be destined for internal consumption and the surplus will be made available to the national electricity system.
Dispute between industry giants
Arauco is not the only company with railway projects in the state. Other giants in the sector, such as Eldorado Celulose and Suzano, have also presented similar proposals in recent years.
In 2021, Eldorado obtained the license to build an 89-kilometer branch between Três Lagoas and Aparecida do Taboado, with an estimated investment of R$890 million.
In 2022, Suzano requested the construction of a 111,7-kilometer branch line to Aparecida do Taboado.
However, ANTT indicated that only one authorization will be granted for the construction of these branches, which could force companies to share the infrastructure.
According to Jaime Verruck, head of the Secretariat for the Environment, Development, Science, Technology and Innovation (Semadesc), “the projects are fundamental for the flow of production in Vale da Celulose, but they still face challenges to get off the ground”.
Economic and environmental impacts
In addition to strengthening pulp logistics, Arauco's project also promises to generate significant impacts on the economy and the environment.
The government of Mato Grosso do Sul has already granted the installation license for the factory, highlighting the importance of structured industrial and forestry policies in the state.
The company also committed to carrying out environmental compensation and using water from the Sucuriú River in processing raw materials.
The energy generated by the factory, enough to supply a city with more than 800 inhabitants, will also contribute to the sustainability of the project.
This feature reflects Arauco's strategy of aligning industrial growth with environmental responsibility.
Authorization process
Arauco's request has been processed at ANTT since October 2024.
The analysis involves multiple departments, including the Superintendence of Railway Transport (Sufer) and the Railway Project Management (Gepef).
The last movement was recorded on January 8, 2025, indicating progress in the authorization process.
The project was named Sucuriú, in reference to the river near the factory. According to ANTT's deputy superintendent, Jean Mafra dos Reis, the proposal has already received favorable opinions at several stages of the process.
The future of logistics in the state
Mato Grosso do Sul is consolidating itself as one of the largest industrial hubs in Brazil, especially in the cellulose sector.
With the construction of the Arauco railway branch, the state will be able to gain even more competitiveness in the international market.
The Port of Santos, the main destination for production, is already used by other companies in the sector, such as Eldorado and Suzano, which have their own terminals there.
However, there are many challenges. The need to share infrastructure and bureaucratic procedures can delay projects.
Still, the progress of Arauco's initiative signals a promising future for logistics and the region's economy.
Question for readers
Do you believe that these railway investments will transform Mato Grosso do Sul into a new logistics hub in Brazil? Leave your opinion in the comments!
A railway that connects the northeast to the south for passengers, like the ones that exist in Europe, connecting Fortaleza to Porto Alegre.
Brazil is taking a long time to speed up the railway system. It has already been proven that it reduces the cost of transport by 67%. Brazil and the environment should not get in the way of licensing as long as it is well planned. Maintaining the road network is bad for the economy and the environment, and producing cellulose captures carbon. Therefore, Brazil's progress should not be hindered by obstructing railway projects.
After the title of the article, the following highlight appears: “A R$800 million railway will connect the Arauco megafactory, in MS, to the Port of Santos.”
This statement is FALSE!!!!
…because it is immediately clarified: “a 46-kilometer railway branch… will connect the company’s factory… to the Ferronorte railway line”
In other words, it is just a branch line that will connect the factory to another railway and not to the port of Santos.
It's a shame that the journalist doesn't write using logic to convey good information from the beginning of the article.