Mato Grosso do Sul to build BRL 2.8 billion rail link for pulp exports

Brazil’s leading pulp-exporting state, Mato Grosso do Sul, has taken another step to strengthen its logistics network and boost competitiveness in global markets. On Feb. 6, Transportation Minister Renan Filho attended a ceremony in Inocência, in the eastern part of the state, marking the start of construction on a new shortline railway dedicated to freight operations.

“Railways are synonymous with new development routes, and this shortline — the first authorized in Brazil — represents an important step forward for the sector. In addition, we will auction the revitalization of the West Rail Network, which will reintegrate Mato Grosso do Sul into the national rail system,” the minister said.

The project includes the construction of a 47-kilometer rail spur linking Arauco’s future pulp mill to the North Rail Network (Malha Norte). From there, trains will head to the Port of Santos (SP) for export to international markets, particularly the United States, Europe and Asia. The line is designed to move up to 3.5 million tonnes of pulp per year, operating trains of up to 100 railcars.

“We knew that Arauco’s project in Brazil would require robust and innovative logistics solutions, and the railway whose foundation we are laying today is an essential part of that vision. It is not a complement to the project; it is one of its core structural pillars,” said Carlos Alberto Altimiras, president of Arauco Brasil.

Construction is expected to be completed by the second half of 2027, with total investment estimated at BRL 2.8 billion. During the construction phase, the project is expected to generate around 1,000 direct jobs.

According to the Federation of Industries of Mato Grosso do Sul (Fiems), the state accounted for 35% of Brazil’s total pulp export value in 2025. Nearly 7 million tonnes were shipped to 40 countries, generating US$ 3.11 billion in revenue — a 17% increase from 2024.

Multimodal Integration

The Inocência rail project is part of a broader federal strategy aimed at optimizing and diversifying Brazil’s transport matrix, reducing logistics bottlenecks and improving cargo flow efficiency.

National Secretary for Rail Transport Leonardo Ribeiro said coordination between rail and road networks is critical to strengthening the country’s competitiveness.

“Railways move cargo more efficiently and with lower emissions, while also helping reduce congestion and accidents on highways,” he said.

In May 2025, the Transportation Ministry auctioned the so-called “Pulp Corridor,” a BRL 10.1 billion highway concession covering federal highways BR-262 and BR-267, as well as state roads MS-040, MS-338 and MS-395.

The corridor is strategic for moving agroindustrial output from Brazil’s Center-West and crosses key municipalities including Água Clara, Bataguassu, Campo Grande, Nova Andradina, Ribas do Rio Pardo, Santa Rita do Pardo and Três Lagoas.

At the end of 2025, Brazil’s development bank BNDES approved BRL 1.05 billion in financing for Eldorado Brasil Celulose to build a new 86.7-kilometer railway linking its mill in Três Lagoas (MS) to the company’s terminal in Aparecida do Taboado (MS), connected to Rumo’s rail network.

“Mato Grosso do Sul had pressing infrastructure needs, but we made the state a top priority and significantly expanded investment overall. For 2026 alone, we will invest BRL 850 million to build access roads to the Brazil–Paraguay bridge and to rebuild the road between Porto Murtinho and Carmelo Peralta,” Renan Filho said.

Source: Informativo dos Portos

Sharing is caring!