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The Midwest Integration Railroad (Fico), in Mato Grosso, will begin work next month; who will carry out the services will be the mining company Vale
Work on the Midwest Integration Railroad (Fico) in Mato Grosso will begin in May. The railroad, designed more than 10 years ago, will have the project executed by the mining company Vale, which should invest around R$ 2,73 billion in Fico, with an estimated period of four years for its completion. The works range from the state of Goiás to the state of Mato Grosso.
Mining company Vale will carry out works on the railroad
The works project will begin in the city of Mara Rosa, in the state of Goiás, where the tracks will connect to the already operational North-South railway network. From there, the Fico will travel 383 kilometers towards Mato Grosso, until reaching the city of Água Boa.
The mining company Vale will be responsible for carrying out the railway works in Mato Grosso and Goiás. The company closed a contract with the Federal Government at the end of last year and expects to invest BRL 2,73 billion in Fico over the estimated four years of completion.
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Contract between Vale and the Government
The signing of the contract between Vale and the Ministry of Infrastructure is due to the government's decision to allow the country's current railway concessionaires to renew their contracts in advance. The proposal has been studied since 2017, authorizing a 30-year concession in the 1990s – the concession only expires between 2026 and 2028 – and is now extended for another 30 years. On the other hand, these companies, in addition to the so-called “cross-investment”, also undertake to expand the networks they already operate.
The mining company Vale agreed to work on the railroad, after obtaining authorization to renew in advance two concessions already operated by its logistics companies, the Vitória-Minas Railroad, in the Southeast Region of the country, and the Carajás Railroad, in Maranhão . When the company finishes the works, it will deliver the project to the government, which will hold an auction, and the railway operations will be carried out for any company interested in that route.
Vale confirmed, through a statement, that it had started activities related to the pre-implementation of the works, including field exercises, development and implementation of projects and contracting of engineering companies. The mining company said that at the same time, the company is waiting for the responsibility of the Federal Government to transfer the land of the first 30 kilometers of the railroad to start the next phase of the rail infrastructure construction project.
Improved logistics in Mato Grosso
The new rail network should help to reduce some pressure on Mato Grosso's two main grain exports, the BR-163 and BR-158 highways. This year, just like the previous BR-163, the BR-158 made national news, with stretches of ground and endless truck congestion, and today, rail transport accounts for about 15% of the country's cargo volume. .
The current goal of the national logistics plan is to reach a participation rate of 30% by 2025. Brazil's goal is to transport the sector for 0,6% to 0,8% of all products produced in the country each year. To minimize the improvement of current logistical conditions, this proportion should be raised to 2,5% of GDP.
