Railroad linking four Brazilian regions unveiled after 35 years

Brazilian President Luiz Inácio Lula da Silva is to participate Friday (Jun. 16) in the inauguration ceremony of the Rio Verde terminal, of company Rumo, the concessionaire controlling the North–South Railroad. Located in Goiás state, the city is one of the main centers for agribusiness in Central-West Brazil.

The event celebrates a major connection in the backbone of Brazil’s rail network, as it links together the ports of Itaqui, Maranhão, to that of Santos, São Paulo. Construction began late in the 1980s. Stretching for 2,257 km, the railroad runs across four regions.

“The conclusion gives three states with strong production of commodities—such as soy, corn, and cotton—a sea outlet. Goiás, Mato Grosso, and Minas Gerais should boost their competitiveness in exports both by the coast, in the Southeast, and the North. In practical terms, this means development and new jobs for the length of this logistics corridor,” the government stated in a note.

Started in 1986, the building of the North–South Railroad saw little progress in its first decades, and did not pick up momentum until 2007, after it received funding from the federal infrastructure program PAC, during Lula’s second term in office.

Potential

Even though Brazilian railroads have received investments adding up to over BRL 141.9 billion over the last decades, as per national association ANTF, the sector still represents 21.5 percent of cargo transportation in the nation, thus below other vast countries like Russia (81%), Canada (34%), the US (27%), and Australia (55%).

By 2021, upwards of 93 percent of the iron ore exported had reached Brazilian ports by rail. The North–South Railway accounts for the transportation of more than 49 percent of the agricultural bulk solids exported. For sugar, the index stands at nearly 53 percent. For corn, the railroad carries 58 percent of production and, compared to over 46 percent for the soybean complex (soy and meal).