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). The envisaged investments in the venture, a "greenfield" project, are estimated at BRL 12.6 billion, including earth-moving, waterway structures and drainage, railway superstructure, complementary construction, special engineering structures, environmental compensation, expropriation, rail signaling systems and energy, railway equipment, offices and facilities, job site, engineering and rolling stock.
It is anticipated that the total railway cargo demand will reach 25 million tons by 2020, a figure that will rise to 42.3 million tons in 2050. The estimated time for the concession is 65 years. Those with potential interest in the project would be trading companies in the agricultural sector that use the corridor for the export of their products.
Expand to read more Collapse to see less
Project stage info
Stage 1: Initial Government Announcement
Ministry of Transportation, Ports and Civil Aviation and National Land Transportation Agency (ANTT)
Form of project announcement
Inclusion in infrastructure plan/strategy document
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.
Please outline any studies (for example environmental, engineering etc.) that will be completed prior to a full business case development
Engineering and environmental studies, Demand Estimate, Revenue Projection, Total Capital Expenditure Forecast