Brazil seeks rail integration to slash logistics costs

Brazil rail integration logistics cost reduction Ferrovia Norte‑Sul Minas Gerais road accidents George Santoro

The Ferrovia Norte‑Sul project, begun in 1987, was designed to link Brazil's agricultural and mining regions with major export ports, aiming to lower transport costs and reduce reliance on highways. It remains a strategic backbone for national competitiveness despite decades of delays and changing contracts.

In Minas Gerais, which hosts the country's most extensive road network, 9,559 road accidents were recorded in 2025, resulting in 764 deaths and an estimated economic loss of R$2.21 billion. Trucks were involved in 3,140 of those incidents, highlighting the safety and financial burden of heavy‑vehicle traffic on the state's highways.

Transport Minister George Santoro told NeoFeed that Brazil's rail system comprises about 35,000 km of track, but roughly 25,000 km are abandoned or unused. With 60% of cargo still moved by road, logistics costs amount to around 15% of GDP. The government plans to create a greenfield railway pipeline, introduce rail authorizations that do not require concessions, and promote open‑access standards so that lines such as the Ferrovia Centro‑Atlântico can handle diverse cargoes. The goal is to cut logistics costs to about 6% of GDP by expanding multimodal corridors that combine rail, road and waterways.

Entities: Ferrovia Norte‑Sul · George Santoro · Minas Gerais

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[○ 1 SOURCE] Approximately 60% of cargo in Brazil is transported by road. (b4651aa6-9188-486f-b9b7-a212b235a4e2)
[○ 1 SOURCE] In 2025, Minas Gerais recorded 9,559 road accidents, 764 deaths, and a cost of R$2.21 billion. (20b86623-c6fb-47b3-a710-46e452c34391)
[○ 1 SOURCE] The Ferrovia Norte‑Sul project was created to link Brazil's agricultural and mining regions to export ports and reduce dependency on road transport. (a5cc5ef8-71df-484e-b9ee-80d3c0ff1a64)
[○ 1 SOURCE] Of the accidents in Minas Gerais, 3,140 involved trucks. (20b86623-c6fb-47b3-a710-46e452c34391)
[○ 1 SOURCE] The government is creating a greenfield railway pipeline and authorizations that allow companies to operate rail sections without concessions. (b4651aa6-9188-486f-b9b7-a212b235a4e2)
[○ 1 SOURCE] Logistics costs represent about 15% of Brazil's GDP, and the government aims to reduce this to 6% through rail integration. (b4651aa6-9188-486f-b9b7-a212b235a4e2)
[○ 1 SOURCE] Brazil's rail network totals about 35,000 km, with roughly 25,000 km abandoned or without regular traffic. (b4651aa6-9188-486f-b9b7-a212b235a4e2)
[○ 1 SOURCE] The Ferrovia Centro‑Atlântico (FCA) is the only Brazilian railway line that regularly carries a diverse mix of cargoes. (b4651aa6-9188-486f-b9b7-a212b235a4e2)