Northern Network extension expands grain transportation from the Midwest Region to the Port of Santos

The 160-km project consists of a 130-wagon train set designed to transport larger cargo volumes to the Port of Santos (Ministry of Transport/Disclosure)

The inauguration of the first phase of the Northern Network (Malha Norte) extension and the new BR-070 rail terminal in Dom Aquino (MT) last Saturday will help expand grain transportation from Brazil’s Midwest Region to the Port of Santos. Spanning 160 km, the project is served by a 130-wagon train set.

The project is part of the Federal Government’s New Growth Acceleration Program (Novo PAC) and has received more than BRL 5 billion in private investments at this stage. Funding was secured through financing provided by the Superintendência de Desenvolvimento do Centro-Oeste (Sudeco) and through debenture issuances supported by the Banco Nacional de Desenvolvimento Econômico e Social (BNDES).

“Mato Grosso produces more than 150 million tonnes, and it is very important that we prepare ourselves for the continued growth of this production. Developing new solutions is essential. One of these solutions is the launch of a dedicated BNDES financing line exclusively for railway construction and the acquisition of rolling stock”, said the Minister of Transport, George Santoro.

The project represents one of the country’s main railway developments currently under construction, integrating different transportation modes and contributing to lower logistics costs, greater operational efficiency, and regional development.

The Northern Network extension is part of the Mato Grosso State Railway (FMT), a project that provides for an additional 743 km of rail infrastructure between Rondonópolis (MT) and Lucas do Rio Verde (MT), including a branch line to Cuiabá (MT). The railway will pass through 16 municipalities and connect Mato Grosso’s agricultural production to the national railway network.

Investments

Between 2023 and 2025, investments in Brazil’s railway infrastructure totaled BRL 30.54 billion, “reflecting a growth cycle that is driving expansion projects, modernization efforts, and increased logistics capacity in the sector”, according to the Federal Government.