Brazil revises technical terms of Ferrogrão rail project

The Brazilian government has revised the technical terms for the 1142km Ferrogrão rail project in an attempt to reduce costs and make the concession more attractive for private sector bidders.

Through the amendment of the technical requirements, the government hopes to reduce the overall cost of the project from Reais 12.7bn ($3.6bn) to about Reais 10bn. Private companies interested in participating in the project have previously expressed concerns over the costs involved.

The line will run from Sinop in Mato Groso state and Itaituba in Pará state to the port of Miritituba on the right bank of the Tapajós river. The railway will create a new export corridor linking the Midwest grain-producing region with the port, and two of the main traffics will be soya and corn. Total rail freight demand on the corridor is forecast to exceed 25 million tonnes by 2020, and could reach 42.3 million tonnes by 2050.

It has been reported that work is unlikely to begin before the mid-2020 due to environmental assessments.

For more information, visit: www.brasil.gov.br

7th May 2018