Rumo Logística Estimates to Create Up to 200,000 Jobs in Important Brazilian State with Implementation of 730-Kilometer Railway, Company Will Invest R$15 Billion

Written by Geovane Souza

Published on 04/11/2022 at 14:32

Créditos: Reprodução www.metrocptm.com.br

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On the last Thursday (3rd), Rumo Logística, the largest railway concessionaire in the country, announced that it will begin construction of a 730-kilometer railway in the state of Mato Grosso, with an investment that may exceed R$ 15 billion. For the concessionaire’s executives, the railway project will provide new job opportunities, increase the potential for demand flow in the region, reduce logistical costs for cargo transport, and allow for cargo diversification.

When completed, the railway will feature 11.5 kilometers of bridges, totaling 22 bridges, 21 overpasses, and a total of two kilometers of tunnels. It will also pass through sixteen different cities in the state. A total of 1.4 million sleepers and 108,000 tons of railway tracks will be needed along its length.

The railway is a result of cooperation with the government of Mato Grosso, which established its own rules for the works to be carried out by Rumo and collaborated with the private initiative in building the tracks. Rumo will be the sole investor in this new railway. Mato Grosso is the largest grain exporter in the country, but the state currently has only 300 kilometers of railroads. This means that when construction is finally completed, which Rumo estimates will happen in 2030, the state will have more than triple its current railway extension.

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New Railway by Rumo Logística in Mato Grosso Is Expected to Generate Approximately 200,000 Direct and Indirect Jobs in the Interior of the State

In addition to generating jobs, the project will also encourage the establishment of new industries, increase the potential for agricultural demand flow in Mato Grosso, and reduce logistical costs for cargo transport.

According to João Alberto Abreu, president of Rumo, the new railway project in Mato Grosso represents a chance to bring growth to the more rural parts of Brazil, decentralizing things, as seen in developed nations, taking steps toward economic growth and job creation. Abreu further states that in this initial phase, over two hundred thousand jobs are expected, consisting of one hundred thousand direct jobs and another one hundred thousand indirect jobs.

Rumo already has preliminary environmental licensing for one hundred percent of the new railway in Mato Grosso and has signed an agreement to allow the works with the MPF (Federal Public Ministry), the government of Mato Grosso, the Public Defender’s Office, and indigenous communities. Additionally, the hearings requested by the MPF are being conducted parallel to the works.

Rumo Logística Estimates to Create Up to 200,000 Jobs in Important Brazilian State with Implementation of 730-Kilometer Railway, Company Will Invest R$15 Billion

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New Railway by Rumo Logística in Mato Grosso Is Expected to Generate Approximately 200,000 Direct and Indirect Jobs in the Interior of the State

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