China may build railroad in Brazil

6 September 2011

Cuiabá, Brazil, 6 Sept – China may build a railroad between the capital of the Brazilian state of Mato Grosso, Cuiabá and the city of Santarém, in Pará state, according to the Brazilian press.

For this purpose, a mission from National Machinery Import & Export Corporation (CMC) including engineers, geologists and economists is in Cuiabá in order to gather data to judge the feasibility of building the railroad, which may cost 10 billion reals (US$6 billion).

Construction of this line aims to improve transport of soy and other agricultural products to cities such as Lucas do Rio Verde, Sorriso and Sinop, in northern Mato Grosso, which is currently carried out by road to Santarém, from where the products are directly transported to China.

The extraordinary secretary for Accompaniment of Intermodal Transport Logistics for Mato Grosso, Francisco Vuolo, said that the railroad would be almost 2,000 kilometres long.

This section of the railroad had been awarded to América Latina Logística (ALL) until 2010, but the concession was cancelled due to a lack of interest from the company, and thus there are preliminary studies available for construction of the railroad.

According to the secretary, CMC may build this branch-line as part of a public-private partnership (PPP) or another type of concession.

The Chinese state company, which has already signed a protocol of intentions to do the work, owns over 90,000 kilometres of railroads in China and other countries. (macauhub)