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Study highlights that Nova Ferroeste will decrease Brazil Cost by 27%

Paraná and Mato Grosso do Sul took another significant step in consolidating the Nova Ferroeste project, a route that will connect Maracaju (MS) to Paranaguá (PR), also called the Western Export Corridor. Technical groups from both governments (GTFerrovias) presented on Monday (22) the preliminary study of demand and layout, considered a key element in attracting investors. Among the highlights is the forecast that the work may reduce the cost of exports by 27%.

The ceremony, at the headquarters of the Governor of Mato Grosso do Sul, in Campo Grande, was attended by Governor Carlos Massa Ratinho Junior and Governor Reinaldo Azambuja, from Mato Grosso do Sul.

Still without defining the final value precisely because it is in the preliminary conclusion phase, the expectation is to put the railway up for auction on the Brazilian Stock Exchange (B3), headquartered in São Paulo, until November 2021.

“A very important meeting. Another step we take in consolidating a joint dream between Paraná and Mato Grosso do Sul. A logistical corridor that will change the infrastructure of this entire region, but with a great concern for the environment, with sustainable development ”, he said. Junior Mouse.

The project seeks to implement the second largest grain and container transport corridor in the country, uniting two of the main export hubs of Brazilian agribusiness. Only the São Paulo network would have greater capacity. “The potential of this axis is enormous. With the investments that we are already making in the port and the creation of this railway line, we will serve the Brazilian productive sector with even more conditions ”, stressed the governor of Paraná.

The new railway network will have a total length of 1,285 kilometers. The package includes the construction of a railway between Maracaju and Cascavel; a new route between Guarapuava and Paranaguá; a multimodal branch linking Cascavel and Foz do Iguaçu; in addition to the revitalization of the current section of Ferroeste, between Cascavel and Guarapuava.

“It is an innovative project, which will allow Mato Grosso do Sul to open an export outlet. The states are very tuned, which helps to guarantee the development of the project ”, commented Azambuja. “It will further boost this area, which is so important for national agribusiness. Less costs and more profitability for producers ”.

IMPACT – According to the technicians responsible for the study, the construction of the railway will have an immense impact within the national logistics, reducing costs and expanding the export capacity.

The area of ​​indirect influence covers 925 municipalities in three countries. There are 773 from Brazil, 114 from Paraguay and 38 from Argentina. In Brazil, it directly impacts 425 cities in Paraná, Mato Grosso do Sul and Santa Catarina, totaling about 9 million people. The area represents 3% of the Brazilian Gross Domestic Product (GDP).

The document points out, among other advantages, the estimate of a 40% increase in grain and cellulose exports to Paraguay.

Figures that, in the view of the coordinator of the Railway Work Group of the State of Paraná, Luiz Henrique Fagundes, reinforce the high demand for the export corridor. “This work is important for collaborating with the reduction of infrastructure costs in the country. This increases the productivity and competitiveness of the economic sectors, with an immediate impact on the growth of Brazil”, he said.

TRACE – The route drawn up by the GTFerrovias team foresees a logistical savings of US $ 13 per ton, with a direct impact on the reduction of the so-called Brazil Cost on exports, of around 27%. In the first year of operation of the railroad, this would represent a decrease of R $ 2.4 billion in the logistics package. Savings that would reach R $ 5.2 billion in the year 60.

“It is not just a project in Paraná or Mato Grosso do Sul. It is a national project that will change the structural reality of the country, substantially increasing efficiency,” said Thiago Caldeira, secretary of the Partnerships and Investments Program (PPI) of the Federal Government. The agency is assisting states in preparing the concession process.

The expectation, according to the technicians, is that through Nova Ferroeste it is possible to transport 54 million tons per year – or approximately 2/3 of the region’s production. 74% would be of cargo destined for export.

“There will be a reduction in the cost matrix in food production precisely because of the drop in logistics costs. Something around 27%, which will be reflected in the final price of the product for the population ”, explained Fagundes.

Jaime Verruck, Secretary of Environment, Economic Development, Production and Family Agriculture of Mato Grosso do Sul, said that the technical groups will stay until Thursday (25) covering the route of the new railway, from Maracaju to Cascavel. “The schedule is going well, on time. This layout was well thought out, studied to avoid problems and always respecting all environmental standards ”, he said.

TRAVEL TIME – There will also be a significant reduction in travel time when compared to the route currently in operation. The group estimates that the Cascavel / Paranaguá route through the new network will take around 18 hours, against the current 100 hours.

With that, said Ratinho Junior, the Western Export Corridor will solve a historic infrastructure problem in Paraná, with an impact for Brazil and Mercosur. The new route, he said, will connect Paraná to the national railway network, benefiting the main powers of national agribusiness, in addition to Paraguay, which is today one of the main world producers of grains.

“Expansion of capacity and logistics in conjunction with sustainable development. This will generate more jobs and income for our people, ”said Ratinho Junior.

OTHER STUDIES – The forecast, according to GTFerrovias, is that the Technical, Economic, Environmental and Legal Feasibility Studies (EVTEA-J) will be ready in September and the Environmental Impact Study and Environmental Impact Report (EIA / Rima) will be finalized in November, so that the railroad can then be privatized.

“Another step in the evolution of this very ambitious project, which has always been dreamed of, but never left the paper. We want to be together in November, beating the hammer at B3 in this new concession ”, commented the Secretary of State for Infrastructure and Logistics, Sandro Alex.

The future railway will take advantage of the current route of Ferroeste, between Cascavel and Guarapuava, and modernize the descent of Serra do Mar, whose stretch currently used was built in the 19th century.

Nova Ferroeste is strategic for the country, and the project was qualified as a priority in the Federal Government’s Investment Partnership Program (PPI). Inclusion guarantees speed in the articulation with the intervening entities, those that end up involved in the licensing processes, such as Ibama, Funai, ICMBio and Incra.

“It is strategic within the Paraná development project designed by Governor Ratinho Junior. Even more so when we consider the potential of Paraná’s agribusiness. The role of the State is to provide adequate logistics for the productive sector ”, said the director-president of Ferroeste, André Gonçalves.

The studies take into account all these variants, and are being designed to have the least possible impact on indigenous communities, quilombolas, settlements and preservation units. Another concern is with urban areas, avoiding stretches that cross cities. In Curitiba, for example, the tracks will all be diverted, without passing trains through intersections that can lead to accidents.

ATTENDANCE – Juliano Rodrigues, advisor to the Railway Working Group, also participated in the presentation of the study; the Logistics advisor of the Ministry of Environment, Economic Development, Production and Family Agriculture of the MS, Lucio Lagemann; as well as politicians and business leaders from Mato Grosso do Sul.

Ferroeste breaks records and returns to positive results

Ferroeste returned to positive results in 2020. For the second consecutive year, the company broke historical records for total cargo, grain, container handling and also had the highest operating profit since its creation in 1996. Through the rail network agricultural production from the west of Paraná to Guarapuava, to be exported through the Port of Paranaguá.

The good numbers that had already been achieved in 2019, the first year of history in which the railway closed in the blue, were all surpassed last year. Operating profit, after depreciation, was R $ 1.27 million in 2020, almost three times more than in the previous year, when Ferroeste made a profit of R $ 453 thousand. The Ebitda, which calculates the company’s operational management, rose 5.88% in the period.


Source: Agência de Notícias do Paraná



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