LAST MONTH Brazilian federal investment bank BNDES was expecting to complete a deal to take a 31% stake in Ferronorte, by converting debt and providing new resources, with the aim of increasing capacity on the soya export corridor between Alto Araguaia and the port of Santos.

Under the terms of an agreement signed in October last year by BNDES, Ferronorte’s parent Grupo Brasil Ferrovias and its pension fund shareholders Funcef and Previ, initial investment of R540m is planned in the broad gauge Santos - Alto Araguaia route and the metre gauge route from Santos to Corumb