NOVA FERROESTE

Railways are described by the World Bank as “the climate-smart and efficient way to move people and freight". Brazil, the 5th largest country and one of the biggest commodities producers in the world, lacks of an efficient infrastructure.

The southwest region of Brazil, including the State of Paraná (Project Owner of Nova Ferroeste), Mato Grosso do Sul, Santa Catarina and Rio Grande do Sul, is responsible for almost 1/3 of the country’s agriculture production. The very same region has a rail mesh that is either abandoned or limited due to its century design. It’s important to emphasize that the southwest region also faces limitation on water transportation. Rivers are not compatible for transportation as they flow inland and south, rather than towards the east coast. The current transport solution for all this is diesel trucks.

Considering the World Bank’s definition; the current infrastructure situation; the State of Paraná’s sustainable goals; and the new regulatory framework, the NOVA FERROESTE project comes as a sustainable solution for the southwest of Brazil.

Located in the States of Paraná and Mato Grosso do Sul, the new track will become the 2nd largest exporter and importer corridor in Brazil. The corridor is supported by the most efficient port in South America, the port of Paranaguá (Paraná). In 2022, the port expects to move 60 million tons of products; in 2030 the port is expected to move near 100 million tons.

The NOVA FERROESTE project is expected, but not restricted, to:

• Diminish fuel consumption (around 24 billions of diesel liters over 65 years)

• Substantial reduction in road accidents and road deaths

• Reduction in transport costs

• Provide decent work and economic growth

• Reduce poverty and inequalities

Feasibility studies were designed at the same time as the environmental studies were. This “simultaneous engineering” guaranteed that the project is robust and respects all the Federal environmental guidelines. For this reason, Nova Ferroeste will be the first project to go auction with the environmental license.

With the new regulation framework, the project team has developed a contract that benefits new entrants, respecting all government goals and legislations.

Project Impact

In line with the articles of the Terra Carta, this project aims to:

Create Sustainable Industries

Making a sustainable future the growth story of our time.

Encouraging innovative financial instruments in order to scale and accelerate transition efforts across business, industries and countries.

Default Sustainable

Making sustainability the responsibility of the entire management team.

Sustainable Innovation at Scale

Scaling up new investments in green/sustainable infrastructure recognizing the financing gap for green energy, water, sanitation, transport and other infrastructure.

Reviewing and updating financial analysis, including valuations to incorporate the risks and opportunities of the climate transition.

Project Timeline

2022 – Auction

2023 – Contract signature

2023 – Projects and railway implementation

2030 – Beginning of Operation