Brazil Approves Arauco Railway Project, Construction to Begin in September

Construction will begin in September on the 47-kilometer railway branch connecting the Chilean company Arauco’s pulp production facility in Inocência to the Port of Santos. On April 8, Brazil’s National Land Transport Agency (ANTT) approved the railway under an authorization regime.

The green light was given during a meeting of ANTT’s Board of Directors, authorizing the construction and operation of the railway branch for 99 years. The project is estimated to cost R$1 billion (approx. USD 200 million) and will be used to transport an annual pulp output of 3.5 million tonnes.

On April 9, during the official launch of the factory’s construction in Inocência, Jaime Verruck, head of the State Secretariat for Environment, Development, Science, Technology and Innovation (Semadesc), stated that the railway project is now entering the DUP (Declaration of Public Utility) phase. This document enables the expropriation of land required for the infrastructure.

“When the DUP is issued, affected landowners have no choice—the company compensates them,” Verruck explained. Once bureaucratic procedures are finalized, construction is expected to begin in September.

According to the secretary, the railway branch will enable the full transportation of pulp to the Port of Santos, marking the first direct rail link for the pulp industry in Mato Grosso do Sul.

Other pulp companies, Suzano Papel e Celulose and Eldorado Brasil have also applied for railway authorization. However, according to Verruck, the application is currently on hold due to a contractual review process involving the Malha Oeste railway network, which is under examination by the Federal Court of Accounts (TCU).

The TCU is reviewing a proposal to restructure the network, connecting Campo Grande with Ribas and Três Lagoas and extending north to Aparecida do Taboado.

The Factory — In Inocência, Arauco completed earthworks in 2024 and is now starting construction of the facility. The company already manages eucalyptus plantations in the region to supply the factory with raw materials, with approximately 400,000 hectares planted.

As previously announced, the factory is expected to create 1,000 direct jobs, 2,000 logistics positions, and 3,000 forestry operations positions.

Source: Campo Grande News

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