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Cargill, Archer Daniels, Bunge and Ammagi may bid together for $4.3 billion railway

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Luiz Pretti, chairman of Cargill Brazil, said on Monday (Dec. 4)  that its company is in negotiations to  form a consortium to bid for $4.3 billion (Ferrograo) railway project that would unite grain-growing regions in central Brazil with northern ports.

Its prospective partners in this consortion would be Archer Daniels Midland Co, Bunge Ltd, and Brazil’s Amaggi.

The line will connect Sinop in Mato Grosso with the river port of Miritituba in the neighbouring state of Pará, with traffic expected to include corn, soybeans, fertilisers, sugar, ethanol, and petroleum products.Total rail freight demand on the corridor is forecast to exceed 25 million tonnes by 2020, and could reach 42.3 million tonnes by 2050.