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Cargill, Bunge, ADM, Amaggi in Talks for $4.3B Brazilian Rail Project

Cargill’s Brazilian unit is currently in talks with rivals Archer Daniels Midland (ADM), Bunge, and Amaggi to create a consortium that would back a $4.3 billion rail project in Brazil that would connect grain producing regions in the center of the country with ports in the north.

The Ferrogrão railway would extend for 684 miles, and would have the capacity to transport 42 million tons of grain to the river port of Miritituba per year, enabling Brazil’s farmers to avoid transporting their crops by trucks on underserved roads, while creating a more efficient system than transporting grain to the Santos or Paranaguá in the south.

The Cargill consortium is not the only party interested in bidding for the project - a Brazilian government official told Reuters that a Chinese consortium of state-owned entities is also planning to bid.

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