Brazil\u2019s 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 Inoc\u00eancia, in the eastern part of the state, marking the start of construction on a new shortline railway dedicated to freight operations.<\/p>\n
\u201cRailways are synonymous with new development routes, and this shortline \u2014 the first authorized in Brazil \u2014 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,\u201d the minister said.<\/p>\n
The project includes the construction of a 47-kilometer rail spur linking Arauco\u2019s 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.<\/p>\n
\u201cWe knew that Arauco\u2019s 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,\u201d said Carlos Alberto Altimiras, president of Arauco Brasil.<\/p>\n
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.<\/p>\n
According to the Federation of Industries of Mato Grosso do Sul (Fiems), the state accounted for 35% of Brazil\u2019s total pulp export value in 2025. Nearly 7 million tonnes were shipped to 40 countries, generating US$ 3.11 billion in revenue \u2014 a 17% increase from 2024.<\/p>\n
The Inoc\u00eancia rail project is part of a broader federal strategy aimed at optimizing and diversifying Brazil\u2019s transport matrix, reducing logistics bottlenecks and improving cargo flow efficiency.<\/p>\n
National Secretary for Rail Transport Leonardo Ribeiro said coordination between rail and road networks is critical to strengthening the country\u2019s competitiveness.<\/p>\n
\u201cRailways move cargo more efficiently and with lower emissions, while also helping reduce congestion and accidents on highways,\u201d he said.<\/p>\n
In May 2025, the Transportation Ministry auctioned the so-called \u201cPulp Corridor,\u201d 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.<\/p>\n
The corridor is strategic for moving agroindustrial output from Brazil\u2019s Center-West and crosses key municipalities including \u00c1gua Clara, Bataguassu, Campo Grande, Nova Andradina, Ribas do Rio Pardo, Santa Rita do Pardo and Tr\u00eas Lagoas.<\/p>\n
At the end of 2025, Brazil\u2019s 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 Tr\u00eas Lagoas (MS) to the company\u2019s terminal in Aparecida do Taboado (MS), connected to Rumo\u2019s rail network.<\/p>\n
\u201cMato 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\u2013Paraguay bridge and to rebuild the road between Porto Murtinho and Carmelo Peralta,\u201d Renan Filho said.<\/p>\n