HomePublicationsInsights'Soy Railroad' should only be ready in 2020

'Soy Railroad' should only be ready in 2020

With an initial investment of BRL 6,4 billion, the Midwest Integration Railroad (Fico) is the first part of the Transcontinental Railroad project (EF-354) and should reduce logistics costs for exporting agricultural products by 25%. . Currently, a large part of the production is transported by truck and problems such as the stoppage on the Tietê-Paraná waterway make transport even more expensive.

Last week, the Minister of Transport, Paulo Sérgio Passos, told journalists that the first phase of the Fico, known as Ferrovia da Soja – which runs from Lucas do Rio Verde, in Mato Grosso, to Campinorte, in Goiás – is already ready for bidding.

The executive director of Movimento Pró Logística, Edeon Vaz Ferreira, says that the agricultural sector has been putting pressure on the government since 2009, when studies for the construction of the railroad began, so that the idea could get off the ground. Pró Logística is an organization composed of several entities from Mato Grosso, chaired by the Association of Soy and Corn Producers of Mato Grosso (Aprosoja-MT).

Almost five million tons of grains are transported by truck to the North-South railroad that goes to the city of Barcarena, in Pará, to the Port of Belém. At least another 1,7 million tons only reach rail transport between Araguari, in Minas Gerais, and Espírito Santo, to the Port of Vitória, explains Ferreira.

In addition, the director highlights about one million tons that passed through São Simão, in São Paulo, to reach the Port of Santos, through the Tietê-Paraná waterway, which has been paralyzed since May of this year. The reason is the lack of rain in the Southeast, which prevents part of river navigation with no return forecast.

The project

According to the ministry, Fico will be 1.638 km long when complete, up to the Vilhena Pole (RO). Its first phase corresponds to 1.040 km. The project will contemplate one of the most prosperous regions of the country in the production of grains and meat, but very lacking in terms of transport logistics, it says in a note.

The completion of the project was initially scheduled for 2014, with an initial investment of R$ 4,1 billion. However, according to the minister's last presentation, this figure has already risen to R$ 5,4 million.

Although ready for the bidding process, according to the Brazilian Logistics Company (EPL), there is still no date for the auction.

The studies were approved by the TCU [Tribunal de Contas da União], but the government is providing more time for potential concessionaire companies to analyze the studies and later prepare proposals to be presented at auction. The government's objective is to ensure that there is competition between the largest number of companies in the bidding process, completes the Ministry of Transport.

The director of the Movimento Pró Logística says that Fico was expected to be tendered last year. Then in the first half of 2014 and now it should happen this half. We still have a year of projects involving environmental licensing. Then at least another four years for construction. However, I imagine that the railway will be in operation, in fact, in mid-2020, says Ferreira.

With the first phase of the project ready, according to the director, it is estimated that around ten million tons of grain will be shipped, which will follow the North-South Railway, passing through Tocantins, to the municipality of Açailândia, in Maranhão. From there, production follows the Carajás railroad to the Port of Itaquí, in São Luís. With the second phase completed, capacity increases by five million tons.

Source: DCI

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