Jul 01, 2021

Bids for the Operation of Highway BR-163 due in Early July

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

On July 8th, bidding for the operation of 1,000 kilometers of Highway BR-163 between the city of Sinop in northern Mato Grosso and the port city of Itaituba in the state of Para will be conducted at the Bolsa de Valores in Sao Paulo. The highway will be converted to a toll road, and BR-163 is considered probably the most important highway in Brazil for the movement of grain to Brazilian ports.

The concession to operate the highway is for ten years with an option for two additional years. This concession is shorter than normal because the Ferrograo Railroad (Grain Railroad) between the same two cities is expected to be completed within ten years. The total investment is estimated at R$ 3 billion with R$ 1.2 billion for operational costs and the rest for mandated highway improvements. Bids are expected from both domestic and international investors and the winning bid will be the company that can offer the lowest tolls while completing the required improvements.

The National Land Transportation Agency (ANTT) requires the winning bidder to maintain the existing roadway while implementing a series of required improvements. For starters, the company will be required to build three toll plazas. Within the first five years of operation, the company will be required to add 42.87 kilometers of passing lanes, 30.24 kilometers of service roads, 340 kilometers of highway shoulders, 8 new intersections, 7 pedestrian overpasses, and access to the Port of Miritituba.