Brazil's Rumo invests 5 billion reais in new 162-km railway now operational
2026-06-21 14:28
Favorite

en.Wedoany.com Reported - Brazilian railway logistics operator Rumo stated that it is closely monitoring the new portfolio of railway concession projects launched by the federal government, focusing particularly on projects that can enhance integration with the company's existing logistics network. Rumo's Commercial Vice President, Altamir Perottoni Jr., made these remarks in an interview after the inauguration ceremony of the BR-070 railway terminal and the first section of the Mato Grosso State Railway.

Perottoni stated that the company is carefully analyzing railway projects currently underway in the country, especially those that can connect to the existing network and enhance cargo absorption capacity in Rumo's operational areas. He said that as Brazil's largest railway logistics operator, Rumo always monitors all opportunities, and any project connected to the company's network is under consideration. These projects of interest include sections of Fico (Central-West Integration Railway) and Fiol (East-West Integration Railway), both of which connect to the North-South Railway. The executive also mentioned that the EF-118 railway, connecting the states of Rio de Janeiro and Espírito Santo, is also under consideration, although its impact on the company's business is considered smaller.

The Brazilian government is currently advancing a portfolio of eight railway projects, with plans to release all tender documents to the market by 2026. Four of these projects are already under review by the Federal Court of Accounts, and the other four will be submitted to the body in the coming months. The government's goal is to sign investments totaling approximately 160 billion reais. Transport Minister Jorge Santoro stated at the inauguration ceremony that the growth of Brazil's production requires a significant expansion of logistics infrastructure in the coming decades. Santoro said that decisions on the four projects currently under review by the Federal Court of Accounts should be made between July and early August, while the other four projects will be submitted in the coming months, with the aim of publishing all tender documents within this year. Meanwhile, some auctions may ultimately be held only in 2027, particularly the Malha Sul (Southern Railway Network) and the Açailândia-Barbacena section projects, which may be affected by regulatory timelines. Santoro added that the government is seeking to expand foreign investor participation in concessions.

These remarks were made on the occasion of the inauguration of the BR-070 railway terminal and the completion of the first phase of the Mato Grosso State Railway. This project is currently considered the largest railway construction project underway in Brazil. Authorized by the Mato Grosso state government, the railway is part of the federal government's new PAC (Growth Acceleration Program) and has received bond financing structured by the Midwest Development Authority and the Brazilian National Development Bank. With Rumo's private investment of over 5 billion reais, the first phase built a new 162-kilometer railway line in a region that previously had no railway infrastructure. Construction began in November 2022 and was completed this month, including the construction of 11 overpasses and bridges. Upon full completion, the Mato Grosso State Railway will have a total length of over 700 kilometers, connecting Rondonópolis and Lucas do Rio Verde, with a branch line to Cuiabá. The railway system will connect to the Northern and Paulista networks, ensuring access to the Port of Santos and passing through 16 municipalities in Mato Grosso state.

This inauguration also marks the start of operations at the BR-070 railway terminal in Dom Aquino. The complex covers a total area of 200 hectares, with 56.1 hectares of built-up area and an additional 16.5 hectares of buildings. The terminal has an annual handling capacity of up to 10 million tons of grain. Operations will begin this month, entering a commissioning and testing phase, with gradual scaling expected in the second half of 2026, and a more significant role from 2027 onwards. The remaining two phases of the railway still await environmental licensing to proceed, with a projected completion deadline of 2034. The expansion of Malha Norte (Northern Railway Network) aims to bring the railway closer to production areas in Mato Grosso, reduce logistics costs, and enhance the competitiveness of Brazilian agriculture.

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com