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Rumo Logística will build a 700 km mega railway that will pass through 16 Brazilian municipalities

Written by Alisson Ficher
Published 05/11/2024 às 18:32
Rumo begins construction of state railway in Mato Grosso to transport grains. Billion-dollar project connects region to the Port of Santos.
Rumo begins construction of state railway in Mato Grosso to transport grains. Billion-dollar project connects region to the Port of Santos.
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Rumo Logística is betting on a mega railway to revolutionize rail transport. A sustainable, billion-dollar project should relieve highways and open up new markets.

The tracks of the Logistics course are about to transform transportation in Brazil, especially for the agricultural sector in Mato Grosso, with an ambitious railway project not seen in decades.

At a time when agribusiness seeks maximum efficiency and sustainable solutions, the construction of this 700 km railway promises to have a profound impact and bring about changes that go beyond the state's borders.

At the heart of this transformation is the State Railway from Mato Grosso, a billion-dollar project that aims to modernize the flow of grains to the Port of Santos, in São Paulo.

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With the first phase scheduled to operate in 2026, the railway becomes a strategic point to ease road traffic and reduce the emission of polluting gases.

Brazil's first state railway in advanced stage

The Mato Grosso State Railway is the first with state authorization in the country and will extend for 730 km, connecting Rondonópolis and Lucas do Rio Verde, passing through Cuiabá.

The estimate is that the complete project will be completed in 2030, but the first 160 km should start operating in 2026, according to information from Rumo Logística.

In an interview on Monday (04), Pedro Palma, CEO of the company, highlighted that this investment is just the beginning of a broader strategy to improve national infrastructure, which already has strategic partnerships, such as the one with the American CHS at the Port of Santos.

To make construction viable, Rumo has already invested more than R$14 billion and continues to invest.

According to Palma, the company aims to connect Mato Grosso's agricultural potential to the global market with greater efficiency and less environmental impact.

Currently, 30 outsourced companies are working on the project and are maintaining around 100 work fronts, employing approximately 4.500 workers.

Reducing bottlenecks and integrating with the Port of Santos

The new railway also connects to the Port of Santos, the country's main export point.

This rail corridor has the capacity to reduce transportation time and logistical costs, providing relief on the state's overloaded highways, which still concentrate the majority of grain flow.

On average, the cost of rail transport is lower than that of road transport, which favors the competitiveness of Brazilian products in the international market.

Another highlight, according to Pedro Palma, is the environmental impact: rail transport reduces the emission of polluting gases by up to six times when compared to road transport.

Furthermore, Rumo is committed to implementing measures that minimize the impact on the local ecosystem and nearby communities, promoting environmental conservation and social responsibility actions.

Advances in construction and infrastructure

Among the works delivered are 19 viaducts and passages, including the construction of a 160-meter viaduct that crosses BR-163/364.

This set of Special Works of Art aims to optimize road flow and increase safety for both workers and the local population.

According to Harley Silva, executive project manager at Rumo Logística, these constructions are fundamental to the efficiency of the project, as they prevent heavy vehicle traffic on the highways.

To further accelerate the project, the installation of 200 km of tracks and the construction of a new cargo terminal were started.

It is estimated that, at the height of the works, more than 5 thousand new jobs will be created in the region, directly benefiting local economies and attracting workers from different parts of the country.

Expansion of the Port of Santos and improvements to the railway network

With the forecast of an increase in the flow of grain exports, Rumo is also investing in expanding its structure at the Port of Santos, in São Paulo.

This expansion allows the railway to meet the growing demand of agribusiness, optimizing the flow of products such as soybeans, corn and cotton to the international market.

In partnership with CHS, the company also seeks to ensure that the Port of Santos infrastructure is ready to avoid future bottlenecks.

In terms of efficiency, Rumo has already doubled its transportation capacity in Mato Grosso in the last ten years, going from 12 million to 25 million tons per year.

This increase occurred without expanding the network, but rather with the recovery and modernization of assets..

According to Pedro Palma, these investments aim to ensure that Brazil is prepared for a future expansion of agribusiness and that producers can count on more reliable and sustainable logistics.

Challenges and next steps

Expectations are high, but the project faces challenges such as the need for public-private partnerships and an economic scenario that demands continuous adjustments.

However, Rumo is optimistic and sees this railway as the starting point for a new era of logistics development in the country.

This unprecedented state concession model in Brazil may inspire other states to invest in their railway infrastructure, especially in areas where transportation depends on road transport.

Will this project be the example that Brazil needs to transform its export logistics and make agribusiness even more competitive in the global market? Follow the news and leave your opinion in the comments.

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Francisco Fortes Filho
Francisco Fortes Filho
05/11/2024 22:48

Brazil was already supposed to have the main railways interconnected, together with the waterways and coastal shipping, connecting the port of Rio Grande to the ports of Santana in Amapá, Manaus, going as far as São Gabriel da Cachoeira, Peru, Colombia and Venezuela. Taking another route, going through the Río de la Plata, Tietê-Paraná, Paragua, in short, interconnecting all of South America.

With these projects and the potential that Brazil has in all areas of the economy, such as minerals, oil, water, arable land, in short, everything that God has blessed our country with the most diverse nature on the planet, no one else could match. In addition to being a power, we would already be a first world country. We would not still be so backward and our population would not still be in a precarious situation and we would still be talking about Bolsa Familia for a large part of the population.

But, on the other hand, since 1980, China has come out of its backwardness to become the second largest economy in the world. Brazil should have observed and followed the example of China and India. However, corruption knows no bounds.

Odilon Pinheiro
Odilon Pinheiro
In reply to  Francisco Fortes Filho
06/11/2024 20:22

Brazil lives under the liberal heel of US imperialism. When Brazil begins to rise up, they come and foment a coup. Then everything goes back to square one.

John jahnes
John jahnes
In reply to  Francisco Fortes Filho
08/11/2024 19:49

Here the left fights to improve the country and its poor people and the right and far right fight to destroy the left and consequently our country.

Richard
Richard
In reply to  John jahnes
09/11/2024 16:51

perfect comment

Eli Goncalves
Eli Goncalves
06/11/2024 06:50

Before investing in more kilometers of highway, the route should invest, at the very least, in maintaining access to the terminal, which is inside the terminal itself, where it is full of holes and mud, damaging the vehicles used to unload the grains. It's horrible. We are asking for help from anyone who can take some action.

Luciano
Luciano
06/11/2024 11:05

All this will happen if the route does not pass through an indigenous reserve, quilombola, native peoples, identitarians and other nonsense from the extreme left that condemns this country to backwardness and underdevelopment.

Jideon
Jideon
In reply to  Luciano
06/11/2024 11:57

The left wants to go back to the time of slavery.

Odilon Pinheiro
Odilon Pinheiro
In reply to  Jideon
06/11/2024 20:18

Is it the left? Isn't it the Agro sector that is caught using work analogous to slavery?

Renato
Renato
In reply to  Jideon
07/11/2024 11:17

Here come the **** comments, late friend, the railroad will ease truck traffic in all regions and make products cheaper because today we pay more for transportation than for the merchandise, this is neither right nor left, this is a joint project between the São Paulo government linked to **** and the rest of Brazil, stop with this imbecility of thinking that everything revolves around politicians E or D, but rather a Brazil moving forward, as for thinking that we would return to the time of slavery, you are simply being extremely racist.

John jahnes
John jahnes
In reply to  Renato
08/11/2024 19:44

Bolsonarists should update themselves before posting their idiocies. They criticize the left and don't even know what that is. They think the right is better but can't name a single work of the government of the Ineligible ****. More culture and less stupidity, please.

Odilon Pinheiro
Odilon Pinheiro
In reply to  Luciano
06/11/2024 20:16

True. The far right is right. We must destroy indigenous reserves, deforest everything, destroy the Amazon. Protecting the natural environment sets the country back. Later, when everything turns into a desert, when global warming really hits, we will blame the left. Is that it? Bunch of ****.

Silvio Ferreira
Silvio Ferreira
06/11/2024 12:57

From Mato Grosso to the port of Santos/SP, there are 16 municipalities?

Manoel
Manoel
07/11/2024 09:24

Well over 50 years late, it still started well.

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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