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Programa de Parcerias de InvestimentosPPI

EF 170 – MT/PA - Ferrogrão Railroad

EF 170 – MT/PA - Ferrogrão Railroad 

Home > Projects > EF 170 – MT/PA - Ferrogrão Railroad

Project's progress

Studies

Public Consultation

TCU Assessment

Bidding Documents

Auction

Contract

05/19/2017
05/07/2020
07/10/2020 (start)
2nd quarter 2021
3rd quarter 2021
4th quarter 2021
  • Completed
  • In progress
  • To be performed
  • CLASSIFICATION BY MEETING

    1st Meeting

  • SECTOR

    Railroad

  • ASSET

    Greenfield Project

  • PROJECT STATUS

    In progress

  • TYPE OF PARTNERSHIP

    Common Concession

  • UF

    MT,PA

  • CAPACITY

    42 millions ton

  • DEMAND

    20.7 millions ton (2030) and 48.6 millions ton (2060)

  • BASE DATE

    10/2018

  • INVESTMENT CAPEX

    BRL 8.4 bi (implementation) + BRL 13.1 bi (recurring)

  • MAJOR AGENCIES INVOLVED

    ANTT, Minfra

  • TERM (YEARS)

    69 years

  • AWARD CRITERIA

    Best price offer for the concession (highest grant)

  • MINIMUM GRANT FEE

    BRL 18 million

Project Summary


The EF-170, also called Ferrogrão, was qualified in the Investment Partnership Program (PPI) at the 1st Meeting of the PPI Council, through Resolution No. 2, of 9/13/2016, converted into Decree 8,916, of 25 / 11/2016.


The project aims to consolidate Brazil's new export rail corridor through Arco Norte. The railway has a length of 933 km, connecting the grain-producing region of the Midwest to the State of Pará, ending at the Port of Miritituba. The Santarenzinho branch, between Itaituba and Santarenzinho, in the municipality of Rurópolis / PA, with 32 km, and the Itapacurá branch, with 11 km, are also planned.


When completed, Ferrogrão will have high transport capacity and competitiveness for export production through the Arco Norte, a role that today is played by the BR-163 highway. The corridor to be completed by the EF-170 and the BR-163 highway will consolidate a new route for the export of soy and corn in Brazil. The railway will alleviate traffic conditions on this highway, with the aim of reducing the traffic of heavy trucks and the costs of conservation and maintenance. By relieving truck traffic on the BR-163, rail freight transport has a high potential for reducing carbon emissions from burning fossil fuel. This reduction potential makes it possible for the project to meet premises guided by the Climate Bonds Initiative - CBI to allow future green bond issues via credit instruments.


The project addresses the expansion of the Brazilian agricultural frontier and the demand for an integrated cargo transport infrastructure.


The project is an important factor in the development of the logistical infrastructure of agricultural areas located in the State of Mato Grosso, enabling the region to be more efficient in transporting production, at a lower logistical cost, promoting significant productivity gains and reducing the need of opening new areas.


The stretch will play a structuring role for the outflow of the production of corn, soybeans and soybean meal from the State of Mato Grosso, also providing for the transport of soybean oil, fertilizers, sugar, ethanol and petroleum products.


Today, more than 70% of the Mato Grosso harvest is transported through the ports of Santos/SP and Paranaguá/PR, more than two thousand kilometers from the origin. This scenario shows the relevance of the project within the country's freight logistics system, being a differential for its attractiveness with potential investors.


For the modeling of the concession, the vertical railway exploration model is being adopted, in which a single company is responsible for managing the infrastructure and providing the transportation service.


As a project planned to be implemented in parallel to BR-163, the railway may fulfill an important inhibiting factor against deforestation, since it blocks the opening of branches to BR (fishbone effect) on this side of the highway, when implemented.


Along its proposed route, the railroad does not intercept conservation units or indigenous lands. The closest indigenous lands are the Praia do Meio and Praia do Índio Indigenous Lands, located in the final portion of the route, close to the city of Itaituba (left bank of the Tapajós River). These legally protected areas are respectively 4 and 7 km from the end point of the project, in Miritituba (right bank of the Tapajós river).


In relation to the conservation units, the Jamanxim National Park is the one in which the enterprise is closest to its limits, located in the area excluded from the Conservation Unit limits when it was created (decree of 02/12/2006) or in the alteration of the limits (law nº 13.452 / 2016), which expanded the range of the BR-163 to establish the railroad layout. Another integral protection unit present in the area of direct influence of the enterprise is the Nascentes da Serra do Cachimbo Biological Reserve, located approximately 2.3 km away from the proposed route guideline.


 

  • Project Current Situation

    ANTT is preparing the final report of the public consultation. 

Files

  • 11 de maio de 2020

    Ferrograo Booklet - may/2020

     PDF (544,75 KB)
  • 07 de agosto de 2020

    Presentation Ferrograo railroad - july/2020

     PDF (1,75 MB)
  • 21 de dezembro de 2020

    Ferrogrão Roashow 2020 - Executive Summary

     PDF (209,11 KB)

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