Brazil will double its railroad expansion from 5,000km of railways worth R$18bn ($10bn), to 10,000km in the next ten years, Deputy Transport Minister Paulo Sergio Passos said.
The aim is to increase the use of rail for cargo transportation from 25% to 32% by 2025, according to Bloomberg.
This is expected to reduce transportation costs and make the country's goods more competitive abroad.
According to Brazil's Institute of Logistics and Supply Chain, transporting a tonne of goods 1,000km cost $27 by rail compared to $117 by road.