Nov 09, 2022
Construction Inaugurated on New Railroad in West-Central Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
On Monday, the Governor of Mato Grosso was joined by the Brazilian Minister of Infrastructure and the CEO of Rumo as well as other local officials, in the city of Rondonopolis, Mato Grosso to inaugurate the construction of a new railroad that will link Rondonopolis with the state capital of Cuiaba and the cities of Nova Mutum and Lucas do Rio Verde in central Mato Grosso. The 743-kilometer railroad will extend the Ferronorte Railroad from the southeast corner of the state into the heart of soybean and corn production in the state of Mato Grosso.
The Ferronorte Railroad was built to connect the state of Mato Grosso with an existing railroad in the state of Sao Paulo. The railroad now connects the two states and the Port of Santos in southeastern Brazil with a cargo terminal in the city of Rondonopolis in southeastern Mato Grosso. Construction on the Ferronorte Railroad started in 1991 and the first Ferronorte train arrived at the city of Rondonopolis on September 19, 2013. The 1650-kilometer railroad was originally operated by ALL Logistica and later by Rumo.
This extension will be the first Brazilian state railroad and Rumo is investing R$ 11.2 billion in the project that will require the construction of 68 bridges, two viaducts, and special works in the Serra de Sao Vicente. The railroad is expected to reach the state capital of Cuiaba during the second half of 2025 and Lucas do Rio Verde by late 2028.
In Rondonopolis, Rumo operates the largest agricultural cargo terminal in Latin America around which an industrial district was built with activities geared toward agro-industrialization. In 2020, the grain terminal in Rondonopolis shipped 18.2 million tons of agricultural commodities in 1,585 trains with 120 cars each, with a capacity of 11,500 tons. On a daily basis, approximately 1,100 grain trucks arrive at the Rumo terminal in Rondonopolis. It is estimated that the extension of the railroad will handle an additional 12 million tons of grain. Construction will start in Rondonopolis and work its way north.