The project will be implemented as a private concession and includes the construction of a 1200km railway at an estimated cost of Reais 8bn. The project also includes a Reais 6bn port and Reais 2bn industrial facility near Colares.
The Fepasa rail project has already attracted interest from potential investors in China and Europe.
Pará's state minister for economic development has commissioned Pavan Engenharia, Brazil, to carry out feasibility studies for the new line, which connect the south and southeast of Pará with the coast in the northeast. When completed, the line will also be linked to the North-South Railway, which is operated by Vale.
The new line is projected to carry 30 million tonnes of freight in the first year of operation, increasing to 48 million tonnes within five years.
The state government says it plans to launch a tender for the railway concession following the completion of feasibility studies.