BRAZIL’s National Bank for Economic and Social Development (BNDES) is to support two rail projects in Matto Grosso state by providing total funding of Reais 3.05bn ($US 515m).
The bank has agreed a funding package worth Reais 2bn to assist freight operator Rumo with the completion of the first phase of its Mato Gross State Railway (FMT) project. This involves the construction of 162km of new line between Rondonópolis and Dom Aquino in the central Brazilian state. Completion is expected in the second half of this year.
The FMT project aims to build a total of 743km of new line in five phases to link major grain-producing regions to the rail network. A new logistics terminal near the BR-070 highway is expected to have capacity for up to 10 million tonnes of grain each year, strengthening Mato Grosso’s export competitiveness.
Private line
BNDES has also approved a Reais 1.05bn finance package for a private project led by Eldorado Brasil Celulose in southern Mato Grosso. This involves the construction of an 86.7km line to connect the company’s pulp mill in Três Lagoas with itsterminal in Aparecida do Taboado, where the rail network provides access to the port of Santos.
According to BNDES, the project will enhance reliability and competitiveness for Brazilian pulp exports and deliver environmental benefits by reducing carbon emissions.
“Rail is a more sustainable mode of transport, aligned with the government of president Lula’s policy of transitioning to a greener economy,” says BNDES president, Aloizio Mercadante.
For detailed data on rail projects across Latin America, subscribe to IRJ Pro.
