Brazil's US$500mn FICO freight rail line 30% complete

Construction of the Ferrovia de Integração Centro-Oeste (FICO EF-354) freight rail line in Brazil’s Goiás and Mato Grosso states is 30% complete.

"As of October 2024, construction of the FICO reached 29.78% completion, with a projection to close the year at 32%. In October last year, the figure was 9.87%. This fast progress is seen as a collective victory, the result of continuous work between the federal government and the private sector," land transport regulator ANTT said in a statement.

The 383km stretch will connect the municipality of Mara Rosa in Goiás with Água Boa in Mato Grosso.

The works are led by Brazilian mining firm Vale, which is building the line as part of an investment agreement with the government, allowing it to obtain early renewal of its Estrada de Ferro Vitória a Minas rail concession.

Investment in the project is estimated at 2.73bn reais (US$476mn) and work is expected to be concluded in the next five years, ANTT said.

Despite the advances so far, the project faces various challenges.

"The complexity of the FICO goes far beyond the construction of tracks. The execution of the project involves extensive engineering work, land and environmental management, as well as special care with archaeological heritage. Along the 383km of the railway, 33 archaeological sites have been identified, of which 23 have already been preserved, ensuring the protection of historical heritage and compliance with regulations," said the regulator.

"One of the major challenges has been expropriation and land clearance, with more than 244km already cleared and 278 areas still under negotiation. In 2024, the ANTT and its partners conducted three conciliation efforts, speeding up processes and avoiding legal disputes to ensure that the project moves forward with legal security and transparency," it added.