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Railway Project Worth R$ 14.8 Billion Advances in Santa Catarina, Includes 49 Bridges, 14 Tunnels, and Could Reduce Transportation Costs by Up to 68%

Author profile image Carla Teles
Written by Carla Teles Published on 22/09/2026 at 17:42
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With Basic Project Completed Between Chapecó and Correia Pinto, the Railway Foresees Investment of R$ 14.8 Billion, 49 Bridges and Viaducts, 14 Tunnels, and Connection with Santa Catarina Ports

The railway project between Chapecó and Correia Pinto in Santa Catarina has made an important advancement with the completion of the basic project for the approximately 319-kilometer stretch. The infrastructure plans include 49 bridges and viaducts, 14 tunnels, and an estimated investment of R$ 14.8 billion, while integrating a larger proposal to connect the western part of Santa Catarina to the main railway corridors and port complexes in the state.

According to ND Mais, in a report published on September 22, 2026, the basic project was formally completed and delivered to the State Department of Ports, Airports, and Railways (SPAF) at the end of August. Despite the technical advancement, construction is still dependent on decisions regarding the Southern Network concession, the structure of the Santa Catarina Railway Corridor, and feasibility studies that will be used in the next stages.

The 319-Kilometer Stretch Will Cross Strategic Areas of Interior Santa Catarina

In Santa Catarina, railway advances with Southern Network; rail transport can reduce agroindustry costs.
Image: Disclosure/Ministry of Transport

The route between Chapecó and Correia Pinto passes through a region of the state where some of the main productive hubs of the West and Midwest are located. This proposal includes areas of Chapecó, Xanxerê, Concórdia, Joaçaba, Erval Velho, Correia Pinto, and Lages, forming a rail link between producing areas and the existing network in the Planalto region of Santa Catarina.

The project includes 49 bridges and viaducts and 14 tunnels along the 319 kilometers. The estimated cost of R$ 14.8 billion is equivalent, according to SPAF, to approximately R$ 46.7 million per kilometer. This budget refers specifically to the Chapecó–Correia Pinto stretch and not to the entire corridor planned between the far west and the coastline.

Project Aims to Connect the West to the Ports by Rail

The Chapecó–Correia Pinto railway is part of a larger proposal to create a railway corridor within Santa Catarina. The objective is to ensure that goods produced in the interior can reach the ports as an alternative to road transport, which currently dominates much of the state’s logistics operations.

The planning includes connections with Itajaí and Navegantes, as well as with the Port of Imbituba through complementary links to the Tereza Cristina Railway. In Correia Pinto, the corridor is expected to connect to the Southern Network trunk, creating access to the northern plateau and the state of Rio Grande do Sul.

Basic Project Completed, but Construction Still Depends on New Stages

The completion of the basic project does not mean that the machinery is ready to begin the 319 kilometers of construction. SPAF informs that the implementation depends on the definition of the parameters for the future concession of the Southern Railway Network, which is considered an essential element for economically and operationally structuring the Santa Catarina stretch.

The state government advocates that the Chapecó–Correia Pinto segment be prioritized in this process and is in discussions with the federal government. Negotiations are also underway regarding documents related to the structuring of the Santa Catarina Railway Corridor, while BNDES is expected to hire a company to prepare and oversee the Economic and Social Viability Technical Study.

Railway costs are significantly lower than road transport costs

One of the economic arguments presented by SPAF lies in the cost difference between the two modes. Data from the State Logistics and Transport Plan indicate that railway transport in Santa Catarina has an average cost of R$ 296.81 (about US$56.90) per thousand ton-kilometers, a unit known as TKU.

In road transport, this cost reaches R$ 923.37 (about US$182.40) per thousand TKU. Based on these differences, state studies suggest that shifting long-distance freight to rail could reduce the unit cost of transport by up to 68%, depending on the supply chain analyzed, particularly for operations involving grains.

Corn supplying the agro-industry travels over 1,500 kilometers

The logistics of corn helps explain why the railway project is receiving attention in the western region of Santa Catarina. A significant portion of the grain used in feed production comes from the Central-West region of the country and travels distances exceeding 1,500 kilometers to reach the main consumption hub in Santa Catarina.

This movement currently occurs largely via highways. SPAF indicates that the railway could be utilized to bring corn and soybean meal to agro-industries and, in the opposite direction, transport meat and processed products intended for export. This back-and-forth flow is among the factors considered in the logistical structuring of the corridor.

Soybeans, fertilizers, and meats are among the anticipated cargoes

Corn, soybeans, and meals are among the products identified by the department as the most suitable for railway transportation. These cargoes have a large volume and cover sufficient distances for the use of trains to be considered in the state logistics studies.

Fertilizers also appear as a potential return cargo, while frozen and chilled meats, animal feed, and dairy products complete the list of goods with potential for utilizing the new infrastructure. The design, therefore, aims to serve both the supply of the production chain and the outflow of Santa Catarina’s production.

Millions of tons could leave the highways in simulated scenarios

State studies consider transferring long-distance cargo to railways as one of the alternatives to reduce the concentration of transportation in Santa Catarina’s roads. Currently, major highways such as BRs 101, 282, 163, and 153 account for a significant portion of goods transportation, as the existing railway network has limited reach.

Simulations for scenarios after the new infrastructures are implemented suggest that terminals in the interior could handle millions of tons of cargo annually that currently only travel by highway. The Transloading Yard in Chapecó is highlighted as one of the examples considered in these projections.

Current railway network in Santa Catarina remains restricted

According to SPAF, only two railway systems are operational in the state: the Mafra–São Francisco do Sul stretch and the Tereza Cristina Railway. This limitation helps explain why economically significant regions remain heavily reliant on trucks for receiving supplies and shipping goods.

The new railway aims to change part of this structure by creating a cross-connection between the West and existing lines. In Correia Pinto, integration with the Southern Network would open new possibilities for rail transport, while the complete corridor would add connections towards the ports and other railways.

Complete corridor aims to reach the Extreme West

The R$ 14.8 billion stretch represents only a part of the proposal. In the comprehensive design of the Santa Catarina Railway Corridor, the connection would be extended to the Extreme West, including municipalities like Dionísio Cerqueira, São Miguel do Oeste, and Pinhalzinho before reaching Chapecó.

A connection with the Southern stretch of the North-South Railway is also planned in Chapecó. According to SPAF, this configuration could create a transloading corridor involving the Midwest, Paraná, and Santa Catarina, establishing new routes for cargo that currently travels long distances on highways.

Investment of R$ 14.8 billion covers only Chapecó–Correia Pinto

The estimated cost for the 319-kilometer stretch is R$ 14.8 billion, but this figure does not represent the total budget necessary to build all the connections proposed for the Santa Catarina corridor. The amount specifically corresponds to the connection between Chapecó and Correia Pinto.

The cost of the complete project from the Extreme West to the coast will depend on the completion of feasibility studies. The EVTEA, Technical, Economic, and Environmental Feasibility Study, should provide the necessary elements to estimate costs, evaluate alternatives, and structure the next stages of the corridor as a whole.

Fewer trucks are one of the projected effects by the department

The Secretary of Ports, Airports, and Railways lists among the possible benefits of the railway the reduction of freight costs for agribusiness, greater security in grain supply, and the removal of thousands of trucks used for long-distance transport from Santa Catarina’s highways.

The department also links the project to potential gains in road safety, road maintenance, and the environmental performance of cargo transportation. These effects depend on the implementation of the infrastructure and the effective transfer of volumes currently transported by trucks to the railway mode.

Next advancement depends on regulatory approval and feasibility studies

With the basic project completed, the Chapecó–Correia Pinto railway moves beyond the engineering stage and enters a phase where regulatory, financial, and institutional decisions become crucial. Defining the concession for the Southern Network and the studies conducted with participation from BNDES are among the necessary steps to transform the proposed route into a structured project for implementation.

The project that is already being planned is noteworthy: 319 kilometers, 49 bridges and viaducts, 14 tunnels, and R$ 14.8 billion (about US$2.7 billion) just for the Chapecó–Correia Pinto stretch. The expectation presented by SPAF is that the railway will provide a new alternative for cargo from the West and reduce reliance on long-distance road routes. Now, progress depends on upcoming decisions regarding concession, feasibility, and integration of the Santa Catarina corridor.

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Carla Teles

I produce daily content on economics, diverse topics, the automotive sector, technology, innovation, construction, and the oil and gas sector, with a focus on what truly matters to the Brazilian market. Here, you will find updated job opportunities and key industry developments. Have a content suggestion or want to advertise your job opening? Contact me: carlatdl016@gmail.com

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