Brazil’s North-South Railroad launch rescheduled as bad weather calls off presidential visit

President Luiz Inácio Lula da Silva has called off his scheduled trip to Rio Verde, located in the interior of Goiás, due to adverse weather conditions that would hinder the safe landing of his aircraft. The announcement was made by the Planalto Palace, the official seat of the Brazilian presidency.

The purpose of the president’s visit was to attend the long-awaited launch ceremony of Brazil’s North-South Railroad, which commenced construction 36 years ago. The government has indicated that the event will be rescheduled; however, the new date for the event has not yet been disclosed.

The North-South Railroad, spanning an impressive 2,257 kilometers, is the backbone of Brazil’s rail transport system, connecting major ports and facilitating the export of key commodities like soy, corn, and cotton. The construction, initiated in the late 1980s, traverses four different regions.

This landmark achievement brings significant benefits to three states known for their robust commodity production—Goiás, Mato Grosso, and Minas Gerais—by providing them with efficient access to maritime exit points. The Southeast Region’s coastline and the northern parts of Brazil now serve as gateways for their exports, fostering regional development, and generating job opportunities along the newly established logistics corridor, according to a statement from the federal government.

Initially slow to progress, the North-South Railroad gained momentum in 2007 when it received investment support from the Growth Acceleration Program (PAC) during Lula’s second term as president.

Back then, VLI Logística was awarded the right to operate the rail stretch between Açailândia (Maranhão state) and Porto Nacional (Tocantins). At the same time, Rumo assumed responsibility for the central-southern section, which spanned from Porto Nacional to Estrela D’Oeste in São Paulo, covering a distance of 1,537 km. In São Paulo, the railway connects seamlessly with the Paulista rail network, extending all the way to the Port of Santos.

Since 2019, logistics operator Rumo has overseen the railroad’s southern section, investing a staggering BRL 4 billion in infrastructure, terminals, and rolling stock. Notably, the company invested in three new terminals in São Simão, Rio Verde, and Iturama.

Moreover, the railroad required the construction of several bridges and the installation of tracks across hundreds of kilometers, as well as numerous rail yards, highlighting the extensive efforts involved in this massive infrastructure project.

Great potential

Despite significant investments totaling over R$ 141.9 billion, the railway transportation sector in Brazil still accounts for only 21.5% of cargo transport in the country. This percentage falls behind other large countries like Russia (81%), Canada (34%), the United States (27%), and Australia (55%), emphasizing the great potential for further development in Brazil’s rail industry.

According to the National Railway Association (ANTF), over 93% of the country’s iron ore exports relied on rail transport to reach Brazilian ports. Additionally, the railway sector transported more than 49% of solid bulk exports and nearly 53% of sugar exports. Regarding corn transportation, the rail modal accounted for 58% of the production, while more than 46% of the exported volume of the soy complex (soybeans and bran) was transported by rail.

Source: Agência Brasil

To read the original news piece, go to: https://agenciabrasil.ebc.com.br/politica/noticia/2023-06/lula-inaugura-terminal-da-ferrovia-norte-sul-em-goias

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