The Government of Mato Grosso do Sul and Rumo Logistica have signed the contract for the development of the railway PPP project in Mato Grosso, Brazil. It is the first state railway in the country. 

The private partner is responsible for the construction, implementation and operation of a 730 kilometers railway, connecting the municipalities of Rondonópolis to Cuiabá, as well as Rondonópolis with Nova Mutum and Lucas do Rio Verde. The project will also connect these municipalities with the national railway network in the direction of the Port of Santos. The operation period is 45 years.

The railway project has an estimated investment of BRL11.2 billion (US$2.12 billion). The State Agency for the Regulation of Delegated Public Services (Ager) will be responsible for monitoring progress. During the construction phase, more than 230,000 jobs will be created. The stretch between Rondonópolis and Cuiabá is planned to be operational in 2025, while the Cuiabá to Lucas do Rio Verde stretch will be in operation in 2028.

Governor Mauro Mendes said: “The railroad will be fundamental for the expansion and competitiveness of agribusiness. In addition, it will be a runner for the industry. We are going to connect Mato Grosso to the main consumption centers in the Southeast.”