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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 flow of industrial production, generate 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, was approved by National Land Transport 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 line will connect the company's future factory to Malha Norte, a strategic railway system for transporting production.
The expectation is that the works will begin in September 2025, with investments exceeding R$ 1 billion.
According to Jaime Verruck, Secretary of Environment, Development, Science, Technology and Innovation (Semadesc), This will be the first railway in the country to be authorized under ANTT's new authorization regime, established to speed up infrastructure projects.
“ANTT has already authorized the construction, and Rumo has also confirmed the connection with the existing network,” said the secretary.
100% rail export logistics
The Malha Norte is a 755 km Brazilian railway that connects Santa Fé do Sul (SP) to Rondonópolis (MT), and is currently operated by Rumo Logística.
This same company also manages the Malha Oeste, which runs through a significant part of Mato Grosso do Sul.
With the new branch line, Arauco will be the first company in the sector in the state to carry out exports exclusively by train, without depending on road transport.
“The train will leave the factory loaded and continue to the Port of Santos, where the cargo will be loaded at its own terminal,” explained Verruck.
Currently, other companies use road transport combined with rail sections, which makes the operation more complex and costly.
This change promises to reduce logistics costs, increase efficiency and improve the product's competitiveness in the international market.
The project still depends on the issuance of the Declaration of Public Utility (DUP), a document required for the expropriation of the areas where the tracks will be installed.
“All processes have been resolved. The forecast is that, in September, with the DUP issued, the works can begin”, highlighted Verruck.
According to him, the estimated cost of the railway is around R$1 billion, considering the average value of R$22 million per kilometer built.
In addition to the railway, Arauco is investing heavily in the municipality with the construction of a new pulp mill, whose budget reaches US$ 4,6 billion (approximately R$ 25 billion).
The cornerstone of the unit was laid in 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 logistics of exporting cellulose.
Suzano Celulose requested authorization for a 231 km stretch, connecting Ribas do Rio Pardo to Inocência, with a planned investment of R$1,77 billion.
The company also plans to build a 24,7 km branch line between units located in Três Lagoas and the Rumo railway, with an estimated investment of R$170 million.
Another Suzano project includes a railway between Três Lagoas and Aparecida do Taboado, with an estimated cost of R$1,1 billion.
Eldorado Celulose received a preliminary license for an 89 km branch line, connecting its plant in Três Lagoas to Ferronorte, also in Aparecida do Taboado.
Eldorado's investment is estimated at R$890 million.
However, according to Verruck, the Suzano and Eldorado projects are currently on hold.
“These companies are awaiting definitions on the reconstruction of the Malha Oeste to move forward with their projects,” he explained.
Malha Oeste is a key piece for the logistics future
The so-called Malha Oeste, which connects Mato Grosso do Sul to São Paulo, is seen as fundamental for the consolidation of an efficient railway network in the region.
The state government is betting on the revitalization of this railway to enhance the flow of agricultural and industrial production.
“Cellulose logistics depends directly on Malha Oeste”, reinforced Verruck.
“We want to connect it to the Malha Norte, creating a railway corridor that serves all local production.”
The Ministry of Transport has already begun negotiations to renew the concession for the Malha Oeste and, at the same time, implement improvements to the route.
The new contract, under discussion, provides for the return of 650 km of the São Paulo section of the railway, which could be adapted in the future for passenger transport.
In return, Rumo Logística will maintain exclusivity over the Mato Grosso do Sul section and will have to invest in an additional 137 km of tracks.
The complete project, which aims to integrate the Malha Oeste with the Malha Paulista, is budgeted at R$2,7 billion.
Today, Mato Grosso do Sul has around 800 km of railways between Corumbá and Três Lagoas, in addition to 355 km in the stretch between Campo Grande and Ponta Porã.
Much of this network, however, needs modernization to support the growth of the cellulose sector and other production chains.
New era of rails in Mato Grosso do Sul
The arrival of the new railway branch marks a historic moment for the state, which has not seen significant investment in this mode 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 exports.
In addition to benefiting the cellulose industry, the new tracks could boost agribusiness, shorten distances and reduce pollutant emissions, replacing part of the road transport.
The railway mode is considered more sustainable, safe and competitive, and has been gaining prominence in the country's infrastructure agenda.
With billion-dollar investments being announced and projects coming to fruition, Mato Grosso do Sul appears to be on the right track for a new growth cycle.
And you, do you believe that Brazil should invest more in railways to modernize its logistics and reduce cargo transportation costs?
