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Brazil's environment regulator Ibama has granted an environmental permit for the construction of the EF-354 railroad, also known as the Integração Centro-Oeste railway (FICO), running through the states of Goiás, Mato Grosso and Rondônia, federal news service Agência Brasil reported.
Aimed at improving the transport of grain and mining commodities, the railroad will stretch 1,641km between the municipalities of Uruaçu in Goiás and Vilhena in Rondônia. Federal rail company Valec will implement the line.
EF-354 is part of a larger initiative to build a rail network that will eventually connect Brazil with Peru, creating a Pacific-Atlantic link.
Brazil's federal government is currently preparing a 5.4bn-real (US$2.2bn) tender to concession a shorter 883km segment of the railway between the city of Campinorte in Goiás and Lucas do Rio Verde in Mato Grosso.
It is expected to be the first tender under Brazil's national logistics investment program, PIL, which involves a total of 11,000km in railway construction throughout the country.
BNamericas will host its 5th South America Infrastructure Summit in Colombia on October 22-23.