Brazil readies US$3.1bn grain railway tender

25.08.2016

Brazil's federal government is preparing a tender to build a graintransport railway between the cities of Sinop in Mato Grosso state and Miritituba in Pará state, calling for some 10bn reais (US$3.11bn) in investments.

According to agriculture and livestock minister Blairo Maggi, the 930km railway has sparked the interest of agricultural companies Cargill, Bunge, Louis Dreyfus Commodities and Amaggi, as well as local infrastructure company Estação da Luz Participações (EDLP), Brazilian paper DCI reported.

These companies represent 70% of Brazil's soybean exports, the report said.

Construction should start in 2019 and take five years. Once up and running, the new route should bring down freight cost in the region by some 40%, according to the report.

Economic, technical and environmental feasibility studies have already been approved by the transport ministry. Environmental regulator Ibama will also make an evaluation regarding the viability of the initiative.

The project is one of many planned under the country's 198bn-real logistics investment program, PIL.


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