Brazilian mining giant Vale will invest 3.5 billion reais (US$2.25 billion) to improve rail and port infrastructure over the next three years, according to local news reports.

A company spokeswoman confirmed the amount to Reuters, saying the company board still had to approve the total, but declined to offer more details.

The company's new chief executive Murilo Ferreira is expected to speak about the planned investments which will be part of Vale's total 2011 $24 billion capital expenditures budget.

The 3.5 billion reais will go to increase capacity in the Ferrovia Centro-Atlantica railroad and the Ultrafertil fertilizer terminal at Santos, Latin America's biggest port, according to the Valor Economico newspaper.

Vale last week announced a joint venture agreement for concession rights at Ultrafertil.

Marcello Spinelli, the company's director of logistics, told Valor Economico that the plan is to invest in four railroad terminals in the states of Sao Paulo and Minas Gerais, acquire more trains and expand the Ultrafertil terminal with the addition of three more berths to the current one.

Space at Santos port is at a premium due to increased global demand for Brazilian agricultural commodities and minerals, particularly from China. (Reuters)