Mar 16, 2026
Grain Railroad in Northern Brazil Runs into New Roadblocks
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The Brazilian Institute of the Environment and Renewable Natural Resources (Ibama) ordered a new review of environmental studies concerning the construction of the 933-kilometer Ferrograo Railroad (Grain Railroad) between the city of Sinop in northern Mato Grosso to the Port of Miritituba on the Tapajos River. Ibama justified the review because the environmental studies were conducted in 2020 and the licensing process has been suspended since then making it necessary to review socioeconomic information, land use and occupation, demographic and territorial dynamics.
Ibama also mentioned that independent technical opinions had already pointed out flaws in the studies, especially in the analysis of cumulative impacts in the projection of deforestation with combined effects on territory, forest, and traditional peoples. Last month, the Union Court of Auditors (TCU) recommended the stoppage of the licensing process to ensure time for public hearings to discuss the modifications of the project before progressing with the grant.
Ferrograo is designed to transform the flow of agricultural products from the center west of Brazil to the Northern Arc of ports, creating a more efficient logistics corridor, with reduced transport costs and decreased pressure on Highway BR-163. In November of last year, the government announced that bidding on the project would be held in September 2026, but that schedule may now be in doubt.
Bottom Line - Environmental and indigenous groups have been fighting this project from its inception years ago and these new environmental reviews are part of their stalling tactics. They feel that any reduction in transport costs will encourage farmers to expand their farming operations in the southern Amazon region, which they are categorially opposed to. Ironically, the railroad would have a much smaller carbon footprint by eliminating thousands of trucks that transit Highway BR-163 every day.