VLI Breaks Record for Railway Transport in Brazil’s Northern Corridor

In 2023, VLI set a new milestone in railway transport in its Northern Corridor, reaching the 14.5 billion TKU (tonne-kilometers) mark. Such achievement was enough to beat the company’s previous record set in 2022 (14.1 billion TKU). On a different note, VLI also saw its highest-ever cargo throughput at the São Luís Port Terminal (Itaqui Port), handling 5.6 million tonnes compared to the previous year’s 5.4 million.

“These record results are the outcome of our focus on meeting our customers’ demands, meticulous planning, and operational stability, coupled with recent investments that have allowed us to expand our freight capacity,” said Alessandro Gama, VLI’s Executive Director of Operations.

VLI’s Northern Corridor helps transport products from various sectors including agribusiness, mining, pulp and paper, and fuel. It covers significant production areas in Brazil, notably the Matopiba region and the states of Mato Grosso, Pará, and Goiás. Its infrastructure includes the northern stretch of the North-South Railway, controlled by VLI, and the Carajás Railway, where VLI operates maintains a right-of-way deal to access the ports in São Luís.

Additionally, the rail corridor features three strategically positioned multimodal terminals in Palmeirante and Porto Nacional, Tocantins, and Porto Franco, Maranhão. These terminals facilitate cargo transshipment from trucks to train cars, on top of providing storage for producers.

The chart below the most exported goods through the Port of Itaqui between January and December 2023. Many of these products reach the shores of Maranhão state after a train journey operated by VLI. The data is from DataLiner.

Top Exports | Itaqui Port | Jan 2023 – Dec 2023 | WTMT

Source: DataLiner (click here to request a demo)

Investments and New Projects

In 2023, VLI commenced transporting fertilizers along the Northern Corridor through a partnership with Copi – then operator of Itaqui Port. This project, the result of joint investments totaling over R$400 million, is equipped to handle 1.5 million tonnes annually.

The corridor’s inauguration marks the initial phase of a significant regional transformation that facilitated the establishment of a major industrial hub at the Palmeirante Multimodal Terminal and surrounding areas. This development offers opportunities for land leasing to fertilizer players, agribusiness traders, and other sectors. The primary advantage lies in enhanced efficiency due to proximity to railway operations and available storage capacity. Last year, Mosaic and Ultracargo announced investments for setting up operations at the site.

Furthermore, in 2023, VLI invested in rolling stock to enhance its cargo transport capacity within the corridor. In the latter half of the year, the company announced the purchase of 168 Hopper HTT wagons and three locomotives, representing a transaction totaling approximately R$200 million.

Sharing is caring!