Chilean Cellulose Firms Bolster Brazil Infrastructure

Major Chilean pulp companies are investing in infrastructure in Brazil, amid ambitious projects linked to the sector in the largest country in Latin America.

The producers Arauco and CMPC are moving forward with logistics investments to support new pulp mills in Brazilian territory, strengthening railways and port terminals focused on exports.

Arauco has begun construction of a 47-kilometer railway line in the state of Mato Grosso do Sul. The company plans to invest 2.8 billion reais (US$540 million) in the project.

"The project calls for the implementation of a new 47‑kilometer railway section, which will connect Arauco’s future factory to the Malha Norte. From this connection, the trains will continue to the Port of Santos, in São Paulo, bound for international markets, especially the United States, Europe, and Asia. The infrastructure has been designed to handle up to 3.5 million tons of pulp per year, through the operation of trains with up to 100 wagons", said Brazil’s Ministry of Transport in a statement.

The construction work must be completed by the second half of 2027.

The railway line is part of Arauco’s Sucuriú Project.

Last year, the company’s board of directors approved an investment of US$4.6bn for the construction of the Chilean group’s first pulp mill in Brazil, to be installed in Mato Grosso do Sul, with capacity to produce 3.5 million tons of eucalyptus fiber per year. The funds cover both the construction of the mill and the associated logistics infrastructure.

In January, Chilean pulp and paper producer CMPC announced the kick off of a 1.5bn reais investment for the construction of a port terminal in the state of Rio Grande do Sul.

The project is part of the Natureza Project, which includes the construction of a new pulp mill in Barra do Ribeiro, with a total investment of more than 27bn reais.

The terminal, under a 25-year concession contract, will have two berths for ship docking, two berths for barges, and a warehouse with a static capacity of 194,000t of cellulose. The construction will be carried out through a joint venture between CMPC and Neltume Ports.

The Brazilian pulp sector has attracted significant investments from local and international companies, driven by the high productivity of the country’s land for eucalyptus cultivation, the main input of the industry.