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With R$14 billion in investments, the Mato Grosso State Railway promises to transform Brazil. Connecting the state to the Port of Santos, it generates almost 150 jobs, reduces transportation costs and contributes to sustainability. This pioneering project marks the beginning of a new era for agribusiness and national logistics.
When it comes to infrastructure and economic development, few projects arouse as much expectation as the Mato Grosso State Railway, also known as the Olacyr de Moraes Authorized Transport Railway (FATO).
Behind this initiative lies an impressive investment of R$14 billion, which will not only transform Brazilian logistics, but also open the doors to a more sustainable and efficient future. But how does this railway promise to change the game?
At the center of this revolution is the state of Mato Grosso, which will be home to the country's first authorized state railway.
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The project, led by Rumo Logística in partnership with the state government, aims to connect the cities of Rondonópolis, Cuiabá, Nova Mutum and Lucas do Rio Verde to one of the largest export hubs in Brazil, the Port of Santos.
There will be 743 km of tracks that promise to solve logistical bottlenecks and boost national agribusiness.
An unprecedented milestone in rail transport
As announced by Rumo Logística, the construction of FATO symbolizes a watershed for the Brazilian railway sector.
Never before has a state railway been authorized in the country, and this project is a pioneer in uniting efforts between the public and private sectors.
The Ministry of Transport also played a crucial role, approving the inclusion of the railway in the Special Incentive Regime for Infrastructure Development (Reidi), which guarantees tax incentives for its implementation.
The structure is also part of the New PAC (Growth Acceleration Program), consolidating itself as one of the main projects in the national infrastructure plan.
This collaboration reflects an integrated approach, capable of meeting the country's logistical demands more efficiently.
Job creation and social impact
One of the most attractive aspects of the project is job creation. During its construction, it is estimated that 105 direct jobs, 41 indirect jobs and another 40 induced jobs will be created.
In total, this represents around 180 job opportunities by 2030.
This direct impact on the population reinforces the project’s commitment to the socioeconomic development of the region.
But the benefits don’t stop there. FATO also seeks to reduce greenhouse gas emissions by shifting a significant portion of freight transportation from highways to rail.
This transition will also contribute to reducing road accidents, making transportation safer and more efficient.
Sustainability in focus with rail transport
The railway route studies were carried out with the support of cutting-edge technologies, such as LIDAR (Light Detection and Ranging) and NIR (Near Infrared), which allow the terrain to be mapped and analyzed with greater precision.
These tools helped to prioritize areas with less environmental and urban impact, ensuring a balance between development and preservation.
Furthermore, the project reinforces Brazil's commitments to the UN Sustainable Development Goals (SDGs).
With the increase in transportation capacity, grain flow is expected to double, rising from 32 million to 60 million tons by 2032.
A railway will also move around 20 million tons of industrial products, consolidating itself as an essential axis for the Brazilian economy.
Institutional support and historical legacy
Several entities, such as the Legislative Assembly of Mato Grosso, the Federation of Agriculture and Livestock of Mato Grosso (Famato) and local universities, are supporting the initiative.
The name of the railway pays homage to Olacyr de Moraes, one of the pioneers of the railway sector in the state, reaffirming Mato Grosso's historic role in logistics innovation.
The choice also reinforces the regional identity of the project, highlighting the importance of cooperation between different sectors for the success of large-scale initiatives.
The future of Brazilian agribusiness
With grain production in the state projected to reach 120 million tonnes in the next nine years, the state railway will be crucial to meeting growing demand.
In addition to optimizing the flow of grains, the project will also facilitate the arrival of consumer goods such as gasoline, diesel and fertilizers, reducing costs and increasing the efficiency of the supply chain.
“IN FACT, we are moving the four corners of Brazil”, stated Rumo Logística, reinforcing its commitment to logistics modernization and sustainability.
How can Brazil expand its railway network?
With the Mato Grosso State Railway consolidating itself as an example of collaboration between sectors, the question remains: What other regions of Brazil could benefit from similar projects? Leave your opinion in the comments!
Good morning, it would be very important for the region from Sao Paulo to Porto Epitacio to be served by cargo and passenger trains. And the passenger train should also be placed on all railways in Brazil, as the passenger and cargo trains are the lifeblood of the railway.
Brazil is far behind first world countries in terms of railways. For example, Spain, with 46 million inhabitants, is already fully connected by railways, not only for freight but also for passengers, with high-speed trains crossing the entire country. Here we are also testing a route from São Paulo to Campinas, which is less than 100 km.
Yes, we are behind due to the policies and privileges given in the past to favor the development of the automobile industry in Brazil.
The comparison with Spain is not very appropriate, considering that Brazil is a country of continental dimensions and with many empty spaces without cities, which makes it very difficult from an economic point of view.
Train must have cargo and/or passengers.