Rail project to start in Brazil as port agreement signed

The CEO of Eurasian Resources Group, Benedikt Sobotka and the Governor of the State of Bahia, Rui Costa, signed an agreement for the construction of Porto Sul, the new port complex in the State of Bahia, Brazil, which will include the development of a railway line serving the iron mine in southern Bahia. Works at the port are expected to start in the second half of 2019.
The project is a key component on the implementation of Bahia Mineração (Bamin) project, which is ERG’s integrated 20 million tonnes iron ore mining per year and logistics greenfield project in the country.
Earlier, the State of Bahia and Bahia Mineração, subsidiary of ERG, signed the agreement on the unification of the terminals of Porto Sul, Ilhéus, signals the start of construction works for the new port, which aims to provide extensive storage and transport capacity for key commodities including iron ore, grain and fertilisers. Specifically, the capacity for iron ore will be for up to 41.5 million tonnes per year.
The agreement paves the way to deliver an investment programme of more than USD 2.5 billion in Bahia.
“The project only stands with the three assets together: the port, the railways and the mining. That is why we are traveling to different parts of the world, so that investors can participate in the project and provide economic feasibility and bring jobs to the south, to the region of Jequié, Brumado and Caetité [ironstone reserves],” Governor of the State of Bahia, Rui Costa, said.
Brumado and Caetité are being developed by the Bahia Mineração, and after the project will be completed, the 20 million tonnes of cargoes will be exported through Porto Sul, using a 525 km line planned by the government, under the West-East Integration Railway (FIOL, Ferrovia de Integracão Oeste-Leste) project.
FIOL is a 1527-km railway connecting the States of Bahia and Tocantins, allowing iron ore transport which will be exported through Porto Sul. The railway line comprises three sections. The first one, with a length of 537 km will connect Ilhéus to Caetité, from Caetité to Barreiras, 485 km is the section’s length, and from Barreiras to Figueirópolis in the state of Tocantins, encompassing 505 km. Each stretch has several different consortia in charge and the implementation rates are different along the railway project.
The cargo flow will be done primarily through the Private Use Terminals (TUPs) South Port and Bahia Mineração S.A. (Bamin), both located in the region of Aritágua, municipality of Ilhéus. The two projects will constitute the South Port Complex, with a retro area of 1,224 ha, a sea access bridge and a pier with a breakwater at 3,500 meters from the coast.


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