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After Almost Three Decades Without Railway Expansion, A New Line Will Be Built in Mato Grosso do Sul. The Project Promises to Transform the Marketing of Industrial Production, Move Billions in Investments, and Redesign National Logistics with an Unprecedented Project in the Country.
After Almost Three Decades Without New Tracks, the State of Mato Grosso do Sul Is Preparing to Receive a New Railway.
The Construction of a Railway Branch in Inocência, a City 330 km from Campo Grande, Has Been Approved by the National Land Transportation Agency (ANTT), Marking the First Project of Its Kind in 27 Years.
The Initiative Is Led by the Chilean Company Arauco Celulose, Which Received Authorization to Explore the Stretch for 99 Years.
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The 47 km Branch Will Connect the Future Factory of the Company to the North Grid, a Strategic Railway System for Marketing Production.
The Expectation Is That Construction Will Begin in September 2025, with Investments Exceeding R$ 1 Billion.
According to Jaime Verruck, Secretary of the Environment, Development, Science, Technology, and Innovation (Semadesc), this will be the First Railway in the Country to Be Authorized Under the New Authorization Regime of the ANTT, Established to Streamline Infrastructure Projects.
“The ANTT Has Already Authorized the Construction, and Rumo Has Also Confirmed the Connection with the Existing Grid,” Said the Secretary.
100% Railway Export Logistics
The North Grid Is a Brazilian Railway of 755 km that Connects Santa Fé do Sul (SP) to Rondonópolis (MT) and Is Currently Operated by Rumo Logística.
This Same Company Also Manages the West Grid, Which Covers a Significant Portion of Mato Grosso do Sul.
With the New Branch, Arauco Will Be the First Company in the Sector in the State to Make Exportations Exclusively by Train, Without Relying on Road Transport.
“The Train Will Leave Loaded Straight from the Factory and Head to the Port of Santos, Where the Cargo Will Be Loaded at a Dedicated Terminal,” Explained Verruck.
Currently, Other Companies Use Road Transport Combined with Railway Segments, Making Operations More Complex and Costly.
This Change Promises to Reduce Logistics Costs, Increase Efficiency, and Improve Product Competitiveness in the International Market.
The Project Still Depends on the Issuance of the Declaration of Public Utility (DUP), a Document Necessary for the Expropriation of Areas Where the Tracks Will Be Installed.
“All Processes Are Resolved. The Expectation Is That, in September, with the DUP Issued, Construction Can Begin,” Highlighted Verruck.
According to Him, the Estimated Cost of the Railway is Around R$ 1 Billion, Considering the Average Value of R$ 22 Million per Kilometer Built.
In Addition to the Railway, Arauco Is Investing Heavily in the Municipality with the Construction of a New Pulp Factory, Whose Budget Reaches US$ 4.6 Billion (Approximately R$ 25 Billion).
The Groundbreaking Ceremony for the Unit Was Held with the Presence of the Vice President of the Republic, Geraldo Alckmin, Reinforcing the Strategic Importance of the Project.
Other Companies Want Their Own Tracks
Arauco Is Not the Only Giant in the Sector with Ambitious Plans in Mato Grosso do Sul.
Other Companies Are Also Moving to Build Their Own Railway Branches and Facilitate the Export Logistics of Pulp.
Suzano Pulp Has Requested Authorization for a Stretch of 231 km, Connecting Ribas do Rio Pardo to Inocência, with an Expected Investment of R$ 1.77 Billion.
The Company Also Plans to Build a Branch of 24.7 km Between Units Located in Três Lagoas and the Rumo Railway, with an Estimated Investment of R$ 170 Million.
Another Project by Suzano Includes a Railway Between Três Lagoas and Aparecida do Taboado, with an Estimated Cost of R$ 1.1 Billion.
Eldorado Pulp Has Already Received Preliminary License for a Branch of 89 km, Connecting Its Plant in Três Lagoas to Ferronorte, Also in Aparecida do Taboado.
The Investment by Eldorado Is Estimated at R$ 890 Million.
However, According to Verruck, the Projects by Suzano and Eldorado Are Temporarily Halted.
“These Companies Are Awaiting Definitions on the Reconstruction of the West Grid to Move Forward with Their Projects,” He Explained.
West Grid Is a Key Piece for the Future Logistics
The So-Called West Grid, Which Connects Mato Grosso do Sul to São Paulo, Is Viewed as Essential for Consolidating an Efficient Railway Network in the Region.
The State Government Is Betting on the Revitalization of This Railway to Enhance the Marketing of Agricultural and Industrial Production.
“The Logistics of Pulp Directly Depends on the West Grid,” Reinforced Verruck.
“We Want to Connect It to the North Grid, Creating a Railway Corridor that Meets All Local Production.”
The Ministry of Transport Has Already Initiated Negotiations to Renew the Concession of the West Grid While Simultaneously Implementing Improvements to the Layout.
The New Contract Under Discussion Foresees the Return of 650 km of the Railway’s São Paulo Stretch, Which Could Be Adapted in the Future for Passenger Transport.
In Exchange, Rumo Logística Will Maintain Exclusivity Over the South Mato Grossense Stretch and Will Need to Invest in an Additional 137 km of Tracks.
The Complete Project Aims to Integrate the West Grid with the Paulista Grid and Is Estimated at R$ 2.7 Billion.
Today, Mato Grosso do Sul Has About 800 km of Railways Between Corumbá and Três Lagoas, as Well as 355 km in the Stretch Between Campo Grande and Ponta Porã.
However, Much of This Network Needs Modernization to Support the Growth of the Pulp Sector and Other Productive Chains.
A New Era of Tracks in Mato Grosso do Sul
The Arrival of the New Railway Branch Marks a Historic Moment for the State, Which Has Not Seen Significant Investments in This Modality for 27 Years.
With the Expansion of the Railway Network, the State Government Hopes to Transform Mato Grosso do Sul into a National Logistics Hub, Especially Focused on Export.
In Addition to Benefiting the Pulp Industry, the New Tracks Could Boost Agribusiness, Shorten Distances, and Reduce Pollutant Emissions by Replacing Part of Road Transport.
The Railway Modality is Considered More Sustainable, Safe, and Competitive, and It Has Gained Prominence in the Country’s Infrastructure Agenda.
With Billion-Dollar Investments Being Announced and Projects Coming to Life, Mato Grosso do Sul Seems to Be on the Right Track for a New Growth Cycle.
And What Do You Think, Should Brazil Invest More in Railways to Modernize Its Logistics and Reduce Costs in Cargo Transport?
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