Ultracargo Expands Rail Logistics for Biofuels Between Brazil’s Midwest and Southeast

BRL 95 million investment strengthens ethanol transport corridor, cuts costs, and improves rail efficiency between MT and SP

Ultracargo has started operations of a new rail siding at its terminal in Rondonópolis, Mato Grosso, reinforcing one of Brazil’s most strategic logistics corridors for biofuels and petroleum products. The BRL 95 million investment strengthens integration between the Midwest and Southeast regions and significantly expands the company’s operational capacity.

The four-kilometer rail siding connects the terminal directly to the regional rail network and allows the operation of trains with up to 80 railcars. The project improves the flow of biofuels,  especially corn ethanol produced in Mato Grosso, toward major consumption and distribution hubs in São Paulo.

The new infrastructure enables a highly efficient return-freight model. Trains that deliver petroleum products to Mato Grosso now return to the Southeast loaded with biofuels, reducing empty runs and lowering overall logistics costs. The shift also supports the partial migration from road to rail transport, increasing reliability and efficiency over long distances.

With the project, Ultracargo’s Rondonópolis terminal now has an annual handling capacity of up to 3 million cubic meters. The investment also included the expansion of storage capacity by 15,000 cubic meters with two new ethanol tanks, as well as upgrades to rail and truck loading platforms. These improvements have reduced the logistics cycle between Mato Grosso and São Paulo by up to two days.

The rail expansion also brings environmental gains. By reducing long-haul trucking, Ultracargo estimates a reduction of approximately 51,000 tons of carbon emissions per year, around 35% lower emissions along the corridor.

The project gains further relevance through its connection with Ultracargo’s rail siding in Paulínia, São Paulo, completed in June 2025. The integration links Rondonópolis directly to the Opla terminal, a joint venture with BP, supporting the growing demand of Brazil’s sugar-energy sector and ensuring continuous fuel supply.

Ultracargo is Brazil’s largest independent liquid bulk storage company, operating integrated logistics solutions for fuels, biofuels, chemicals and vegetable oils across multiple transport modes nationwide.