Two years after being auctioned by the federal government, the Norte-Sul railroad is beginning to consolidate as a major logistics corridor. Vale, which runs the railway on the section that goes from Açailândia (MA) to Palmas (TO), has signed a major agreement with the multinational Bunge to transport 200 million gallons of ethanol per year by the Port of Itaqui in Maranhao.
The 11-year contract should further increase the total freight moved by rail. Until September of last year, Vale had carried 7% more than all 2008 freight, totaling 1.5 million tons. According to the Director of Marketing Logistics of the company, Marcello Spinelli, the agreement with Bunge will prevent the movement of 700 trucks per month on Brazilian highways.
The ethanol will leave the multinational terminal in the city of Tupirama (TO) to Guaraí (TO), at the beginning of the Norte-Sul. From there, it will continue by train through Norte Sul and the Carajás Railroad (also owned by Vale) to São Luís (MA), where it will be exported through the Port of Itaqui. “The cost of transport becomes much cheaper because of the proximity to the United States,”, said Spinelli.
Mitsui Rail Capital (MRC) will order and then lease 25 tank cars to Bunge. All equipment will be manufactured in Brazil. The transport of 200 million liters will begin this year, but has no starting date. “The volume will grow along the demand”, says Spinelli. In his view, the Norte-Sul is one of the most modern railways in the country, with very good alignement, allowing a speed of up to 80 km per hour.
Although the section bought at auction by Vale is not built yet (the track to Palmas shoud be completed in May), the company has managed to sign important contracts, besides Bunge. In December, the company signed an agreement with Ceagro Agronegócios for 240 tons of grain per year.
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In this case, Ceagro will rent 30 cars from Ferrolease for the operation. The grains will be transported from Porto Franco (TO) and Colinas do Tocantins (TO) to São Luis (MA), where it will be loaded on ships at the Ponta da Madeira terminal, belonging to Vale. Besides Bunge and Ceagro, Norte-Sul has other clients such as Cargill, Multigrain, Algar, Iara Fertilizantes and Spa Construtora. “Today we are very focused on grain and fertilizer. But when we get to Palmas we will also explore the container market”, says Spinelli.
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