Construction of state railway responsible for 62% of infrastructure jobs in Mato Grosso

The construction of the state railway in Mato Grosso now accounts for approximately 62.1% of job creation in the state’s public construction segment for infrastructure projects during the first quarter of 2024. According to data from Caged (General Register of Employed and Unemployed Persons), 1,666 jobs were created in this segment across the state during this period. Of these, around 1,035 jobs are dedicated to the railway works of Rumo, the country’s largest railway operator.

In April alone, the railway concessionaire was responsible for 41.4% of the construction segment’s employment balance in the state. Official data shows that throughout Mato Grosso, 1,478 people were employed, with the state railway project employing 612 workers.

The railway, named Senador Vicente Emílio Vuolo, received state authorization for construction in 2021, allowing Rumo to proceed. The project will span over 700 kilometers of new tracks, connecting Rondonópolis to Lucas do Rio Verde, the country’s largest soybean and corn-producing region. The first phase, with an investment estimate between R$4 billion and R$4.5 billion, includes more than 200 kilometers of tracks reaching the BR-070 region where the first terminal will be built.

Rumo’s vice president of regulation, Guilherme Penin, stated that the coming months should see the workforce peak at over 5,000 direct jobs. “In the first three months of the year, we experienced a period of rain in the region. From May onwards, the tendency is to accelerate the work during the dry period, which lasts until October. This project is boosting the state’s economy,” he emphasized.

Silvio Rangel, president of the Federation of Industries of Mato Grosso System (Fiemt), noted that the progress of railway works in Mato Grosso could have significant impacts on the state’s industry. One major consequence is the reduction in transport costs, which will make local products more competitive in national and international markets. Additionally, improved railway infrastructure could attract further investment to the region, further enhancing job creation.

“The increase in employment not only improves the living conditions of the local population but also stimulates domestic consumption, boosting various sectors of the economy such as retail, construction, and services. This increase in consumption, in turn, can lead to higher tax revenues, benefiting both the state government and municipalities. These funds can then be reinvested in infrastructure, health, education, and other essential public services. This positive cycle of employment, consumption, and revenue can significantly contribute to the state’s sustainable economic growth in the long term,” said Rangel.

Fiemt also estimates that the railway construction will create over 200,000 jobs in the state, with 114,000 direct jobs, 44,000 indirect jobs, and 44,000 induced jobs.

Sustainability

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