Brazilian mining major Vale (NYSE: VALE) will invest some US$7.8bn in logistics infrastructure in Maranhao state by 2015, national transport federation CNT reported in a release.

 

Work includes expanding the state's Carajas railroad and building a new dock at Ponta da Madeira port in Sao Luis municipality, which handles most of the company's iron ore.

 

The new dock will cost US$1bn, and will be 25m deep. Work is scheduled for completion in 2H13.

 

As for the railroad, a 100km extension will be built and 605km of tracks will be doubled, the release said.

 

Vale's investment is almost three times what the federal government will invest in the region through phase II of its growth acceleration plan (PAC), according to the release.

 

The improvements will go hand in hand with Vale's new Carajas Serra Sul iron ore project, which is forecast to have a production capacity of 90t/y.