Jun 21, 2023

North-South Railroad Now Connects Northern and SE Brazil

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

The Brazilian government inaugurated last week the North-South Railroad which now connects the northern Port of Itaqui in the state of Maranhao with the Port of Santos in the state of Sao Paulo. This long-anticipated 2,257-kilometer railroad will serve as the backbone of Brazil's rail system.

The northern section will link to the existing Carajas Railroad that transports much of Brazil's iron ore to the Port of Itaqui. The southern section will link to the existing Malha Paulista railroad which transports grain from Mato Grosso to the Port of Santos. This railroad will facilitate the movement of soybeans, soybean meal, and corn produced in central Brazil to either northern or southern ports. It will also facilitate the movement of imported fertilizers into Brazil's interior.

Other proposed railroads will link into the North-South railroad reducing the cost of transportation for grain produced in the cerrado region of central Brazil. The Port of Itaqui on the northern Atlantic Coast, is the largest port in Brazil's "Northern Arc" of ports. The Port of Santos in southeastern Brazil is Brazil's largest port.