Plans Presented For New Rail Project in Brazil

This article has been reprinted from the Dec. 7 Grain Transportation Report.

According to the International Railway Journal, the government of the Brazilian state of Paraná presented plans last week for a new freight railway that will improve the flow of agricultural products from the midwest of Brazil through the port of Paranaguá. 

The line (about 620 miles) will link the region of Dourados in Mato Grosso do Sul with the Paraná coast and could boost the competitiveness of Brazil’s agricultural exports. 

The project is estimated to cost $3.1 billion. A September USDA Foreign Agricultural Service GAIN report (#BR 1715) highlighted infrastructure developments in Brazil’s Northern Arc, noting “…Brazil’s infrastructure still
lags behind other countries. 

"Many of its main grain transport roads are still partially unpaved and very few railways are available for agricultural transport. 

"Improvements to infrastructure are slowly being made and transportation costs have dropped in recent years, but there are still many areas that need to be improved for Brazil’s exports to remain competitive, especially in Brazil’s north and center-west regions.” 

For more information on Brazil’s soybean transportation, see AMS’ quarterly report and annual guide.