Dec 02, 2025

Bidding on Brazil's Ferrograo Railroad Scheduled for September

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The Brazilian government announced last week that bidding for the construction of the Ferrograo Railroad (Grain Railroad) that will link the city of Sinop in northern Mato Grosso with the Port of Miritituba on a tributary of the Amazon River, will be held in September of 2026. The railroad has been tied up in court for years due to objections from indigenous and environmental groups. They contend that the railroad will impact their lifestyle and encourage deforestation for additional agricultural production.

The announcement comes amid the trial in the Brazilian Supreme Court over the constitutionally of the original bill authorizing the railroad. Supreme Court judge Alexandre de Moraes has already voted for the validity of the law that reduced the area of the Jamanzim National Park for the construction of the railroad. However, the trial has been suspended since October, awaiting the votes of the other nine judges.

The Ferrograo project, with 933 kilometers of extension, is among the priorities of the National Rail Concessions Policy that includes 8 railroads totaling more than 9 thousand kilometers and investments of R$ 140 billion (US$ 26.5 billion).

Below are concrete ties being laid for a railroad project in Brazil.

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Concrete railroad ties being laid in Brazil. Photo courtesy of SoNoticias.

It is estimated that the railroad will take approximately six years to build due to the difficult terrain and numerous bridges. Many of the large infrastructure projects in Brazil have cost overruns and they run out of money before completion. Therefore, there is no certainty that the railroad will be completed within the scheduled timeframe.

The railroad will parallel Highway BR-163 so it will cause very little deforestation since the government already has the right-of-way. Critics contend that it will result in deforestation in Mato Grosso as farmers expand their grain production.