Strategic railway: Malha Oeste project includes R$3.6 billion and link to Port of Santos

Brazil’s National Land Transport Agency (ANTT) has approved the technical studies, legal documents and concession plan for the Malha Oeste railway. The decision was made on Thursday, May 21, during a meeting of the regulator’s board.

With the approval, the railway project, which crosses Mato Grosso do Sul and São Paulo, now moves to the next stages of review by the Ministry of Transport and the Federal Audit Court (TCU). The auction will only be authorized after that process is completed.

Malha Oeste spans 1,625 kilometers and crosses strategic cities such as Campo Grande and Três Lagoas, in Mato Grosso do Sul. The route connects Mairinque, in São Paulo, to Corumbá, in Mato Grosso do Sul, serving as a logistics corridor for cargo from Brazil’s Center-West and as a trade integration route with Bolivia and Paraguay.

According to ANTT, the plan includes connecting the railway to the Port of Santos, in São Paulo. The official document also mentions a “possible future integration” with ports in Rio de Janeiro and Espírito Santo through the Ferroanel rail ring, considered an additional investment.

The contract provides that the winning concessionaire may take over the Ponta Porã branch line, assuming the financial risks of the operation.

The approved model establishes R$3.6 billion in federal investment to restore the network and resume operations. Federal transfers will be made annually, capped at R$500 million, providing budget predictability and continuity for the works.

The public funds, however, are conditional on full operation of the stretch between Corumbá and Mairinque or as far as Bauru, in São Paulo. If the concessionaire operates only the segment between Corumbá and Três Lagoas, no federal funds will be released.

After review by the Ministry of Transport and the TCU, the process will enter its final stage. The federal government expects to hold the auction still in 2026.

Source: Folha de Campo Grande

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