Investors plan a R$ 16 billion railway and port in Pará

Foreign investors plan the building of a 1,2 thousand kilometres railway in Pará and of a big port near the northeast region of the State, aiming at draining minerals and agricultural products, a project of 16 billion reais, said this Monday the State Government and the company responsible for the work.

The state’s railway, that might be a private concession, would follow a route parallel to the northern route that has never been concluded by the North-South Railway, a federal concession.

The Secretaria Estadual de Desenvolvimento Econômico (Sedeme or State Secretary for Economic Development ) granted Pavan Engineering, from São Paulo, the authorization for performing the preparation studies that are able to prove the viability of a railway connecting the southern and northern regions of Pará up to the northeast bay of the State, accordingly to a report released this Monday.

The future railway has already been titled Fepasa. It might connect mineral-extraction and agricultural-production areas up to a port that will be built in the city of Colares, in the northern region of Belém, passing through the port of Vila do Conde, in Barcarena.
Private investments expected for the railway are equivalent to 8 billion reais, plus 6 billion for the port and other 2 billion for building an industrial pole near the port.

“There are already Chinese, German investors interested on it because everyone is searching for infrastructure”, said to Reuters Renato Pavan, director of Pavan Engenharia, responsible for the studies and relationship with investors.

The region of Colares has been chosen because it has a deep natural draught, which allows the docking of large ships that nowadays are not able to access terminals in Santos (SP) and Paranaguá (PR), for example.

“When the railway of the State of Pará is ready, it will be able to get connected to the North-South railway, like in the State of Paraná, where the state railway gets connected to the federal one. One is able to complement the other”, said the Economic Development secretary Adnan Demachki, in a communication.

Accordingly to the State Government, the expectation is a demand of 30 million tons right in the first operation year, especially for ores and grains, with a volume increasing to 48 million annual tons within a five-year period.

Accordingly to Pavan, one of the mines that will be made feasible with the railway, in the city of Redenção, will be able to produce 30 million iron ore tons per year, with a high percentage of iron (67%).

“The railway will turn feasible the exploitation of iron, nickel and copper mines in the southern region of Pará, which nowadays are not being explored due to a lack of logistics. It would also make feasible, trough branches, the operations of other enterprises, such as Votorantim Metais, which has a project ready for being settled in Rondon do Pará”, said the secretary.

After the conclusion of studies, a public competition will be settled for the concession of the railway, accordingly to the state government.

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