Stage 1: Initial Government Announcement
Government Sponsor
Ministry of Transportation, Ports and Civil Aviation and National Land Transportation Agency (ANTT)
Form of project announcement
Inclusion in infrastructure plan/strategy document
Project Rationale
The EF-170, also called Ferrogrão, seeks to entrench the new railway corridor of exports from Brazil through Arco Norte. The railroad is 1,142 kilometers long, connecting the grain producing region of the Midwest with the State of Para, ending at the Miritituba Port (in the Northern region of Brazil).
Industry surveys highlight that estimates by local businesses is to drain up to 20 million tons of Mato Grosso grain through the ports in the Amazon Basin. There are already several investments being carried out in transshipment cargo terminals in waterways and port terminals, with some equipment already operating. By the end of this decade, it is estimated that investments in building these transfer stations, warehouses, terminals and vessels will be more than BRL 3 billion.
When installed, the EF-170 will offer high transport capacity and competitiveness to the corridor - a corridor already consolidating through the BR-163 highway. The project will also ease traffic conditions on that highway, reducing the flow of heavy trucks transporting grain and lowering the costs of preservation and maintenance for the existing highway infrastructure.
The corridor that will include the EF-170 and BR-163 highway will open a new route for the export of soybeans and corn in Brazil. Today, more than 70% of crops from the state of Mato Grosso pass through the Santos Port (in the state of São Paulo), and Paranaguá Port (in the state of Paraná) – more than 2,000 kilometers apart from the origin. These circumstances make this an extremely important project within the system of cargo logistics in the country, a differential for its attractiveness to potential investors.
Indicative timetable of project development
Studies under review. Bidding on the project is scheduled for the 2nd half of 2017.
Project looking for additional PPF assistance
No
Project looking for additional MDB assistance
No
Is project multi jurisdictional?
No
