Arauco to Hold Groundbreaking Ceremony for Railway Branch to Serve New Pulp Mill in Mato Grosso do Sul, Brazil

Jan. 24, 2026 - Arauco on Feb. 5 will hold a groundbreaking ceremony for a railway branch line that will serve its new pulp mill being built in Inocência, Mato Grosso do Sul state in Brazil.

The new mill, known as “Sucuriú Project”, will be the world's largest single-phase pulp mill project with a production capacity of 3.5 million tonnes per year of eucalyptus pulp.

On April 9, 2025, Arauco celebrated the laying of the cornerstone at the site of the mill. Start-up is expected in the second half of 2027.

The new railway branch line is being built exclusively for the pulp mill and represents an investment of US$4.6 billion. It will have the capacity to transport 3.5 million tons of pulp per year. The mill’s production will be transported to the RMN (Rumo Malha Norte) yard, from where the trains will go directly to the Port of Santos (SP) for export to international markets.

In addition, Arauco has signed a R$770 million contract for the acquisition of railway wagons, which will be supplied by Randoncorp with operational participation from Rumo. Manufacturing and deliveries of the rail equipment is scheduled between May 2026 and November 2027. The exact number of units was not disclosed.

The new branch line construction is expected to be completed in the second half of 2027.

SOURCE: Campo Grande News