December 17, 2017

Tendering of Brazil’s Ferrogrão project to start in early 2018

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BRAZIL’s federal government plans to start the tender process for the 1142km Ferrogrão rail project in the first quarter of 2018, leading to an auction in the second quarter.


The concession will run for 65 years. The estimated value of the contract is Reais 14bn ($US 4.2bn) at March 2015 prices.

 

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.

Ferrogrão is one the federal government’s Investment Partnership Programme (PPI) projects.

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