Hydro has signed an agreement with Government of Pará in support of the planned railroad project in the state of Pará (FEPASA). Under the agreement, Hydro has committed to contract an annual cargo of 5 million tonnes of bauxite on the planned railway.
Before signing the agreement, Hydro has supported the preliminary feasibility study for a railroad project in the state of Pará, aiming to establish a railroad in the region. For Hydro, a railroad would provide an alternative means of transportation of bauxite from Hydro Paragominas bauxite mine to Hydro Alunorte alumina refinery. This distance is currently served by the world’s first bauxite slurry pipeline. Hydro’s commitment is conditioned to the railroad being competitive to alternative transportation solutions.
FEPASA is the railroad project proposed by the Government of Pará and intends to provide logistical solutions to minerals and agriculture businesses in Pará. FEPASA is intended to cover the distance from the south of the State of Para, interconnecting with the North/South federal railroad under construction to Barcarena and the port of Vila do Conde. FEPASA will have two sections where the northern part, with a branch to Paragominas, will be required for transportation of bauxite to Barcarena. Based on the current schedule the FEPASA North will be approx760 km long including the branch to Paragominas.
Preliminary timeline targets the railway to be available to Hydro in Paragominas post 2025.