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$9 BILLION highway impresses, but rail plans are even more 'ambitious' in Brazilian state

Written by Alisson Ficher
Published 02/11/2024 às 23:39
Santa Catarina expects R$12 billion in new railways, surpassing the R$9 billion Via Mar highway, but faces uncertainties in raising funds.
Santa Catarina expects R$12 billion in new railways, surpassing the R$9 billion Via Mar highway, but faces uncertainties in raising funds.
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With a projected investment of R$12 billion, the new railways aim to improve state logistics, connecting production areas to ports and facilitating exports.

When one thinks about large infrastructure projects in Brazil, the exorbitant cost and the socioeconomic impacts involved immediately come to mind.

But in Santa Catarina, a R$9 billion project for a new highway is already starting to share attention with an even bolder proposal: the construction of two new railways, estimated at a value much higher than that of Via Mar.

Those railways promise to transform the state, but the viability of its costs and deadlines remains a big unknown, especially in a scenario where there is a lack of clarity about private investment.

TECHNOLOGY AND SMARTPHONES – FREE MARKET

TECHNOLOGY AND SMARTPHONES – FREE MARKET

Billion Estimate to Improve Logistics

According to NSC Total portal, the Federation of Industries of Santa Catarina (Fiesc) states that the Via Mar project, a highway parallel to BR-101, could cost up to R$9,2 billion, attracting attention due to its magnitude.

However, plans for railways exceed this figure, with planned investments of around R$ 12 billion.

According to Fiesc, this projection includes high costs for executive projects that are already underway to define the route and technical feasibility.

These railways should serve strategic regions: the first route would connect Chapecó to Correia Pinto, and the second would connect Araquari and Navegantes, optimizing cargo transportation and promoting regional development.

Both projects are in the final stages of development, with completion scheduled for March 2025..

The projects in detail: connections with the Southern Network and the ports

The rail link between Chapecó and Correia Pinto has an estimated cost of around US$ 2 billion and is 319 kilometers long.

This route is essential for the flow of production from the West of Santa Catarina and nearby regions, improving access to the state's ports.

According to information from the state government, the objective is to reduce logistical costs and promote more efficient and sustainable transportation.

The second project, which will connect Araquari to Navegantes, will require an investment of approximately US$ 300 million.

This railway branch will be important for connecting port complexes: Araquari already has a line with São Francisco do Sul, which facilitates the transportation of cargo between ports and other regions, both for import and export.

Challenges to making projects viable: where will the resources come from?

Despite the planning and initial investments in the executive projects, there is still no defined financial model for carrying out these works.

The role of the private sector is considered essential, but remains uncertain.

As Fiesc highlighted, ensuring private sector participation in infrastructure projects of this magnitude is a complex task and requires attractive and robust financial proposals, especially in times of economic instability.

The executive projects, which total a state investment of R$33 million, began in 2022 and are underway to define the technical and financial specifications.

These studies are crucial to attract private sector partners and define the appropriate financing model..

According to state sources, to date, there are no guarantees as to how these resources will be obtained, which raises doubts about the future of the projects.

Impacts on the logistics and economic sector of Santa Catarina

As Railways are seen as a solution to improve the transportation of goods, reduce traffic on highways and minimize freight costs.

This logistical development is considered essential to strengthen the competitiveness of Santa Catarina's production, expanding export routes and facilitating access to ports.

For the agro-industrial sector in the West of Santa Catarina, for example, the new railway route could represent a logistical revolution, ensuring faster and more efficient transportation.

The expectation is that railways can help reduce dependence on overloaded highways, such as BR-101.

For experts, these projects offer the chance to restructure the state's transportation system and reduce the environmental and economic impacts caused by road transportation.

Strategic investment or financial risk?

Given the high costs and uncertainty regarding obtaining resources, new railways are seen as a risky investment by many.

Despite the optimism of businesspeople and the state government, there are those who question the viability of these projects, especially considering the scenario of financial uncertainty.

The logistical complexity and costs involved are the main challenges for these plans to come to fruition..

Will Santa Catarina be able to make these billion-dollar railway projects viable, guaranteeing private participation and the promised economic benefits?

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Edson Monteiro de Moraes
Edson Monteiro de Moraes
03/11/2024 05:22

How about talking to the Chinese? Regardless of ideology, they are certainly the ones who have the money and are willing to take on big challenges.

Christian
Christian
03/11/2024 11:28

The project is ready. We just need to know where the money will come from. It seems like a joke. I just hope it doesn't come from more taxes that will lead to more stagflation.

Carlos Souza
Carlos Souza
In reply to  Christian
04/11/2024 03:27

Trust that the private sector will pay for it, and this is not April 1st. A fairy tale.

Alex Oxley
Alex Oxley
03/11/2024 15:24

Comedy! “Private investment” Just like the Florianópolis bypass road that, even though it collected tolls, was only 13 years late and Lula needed to send resources to finish it? All this because there is no corruption here!!!! Hahahaha

Eduardo Oliveira De Castro
Eduardo Oliveira De Castro
03/11/2024 19:33

There is a deactivated railway between Araxa and Uberaba, wouldn't it be viable to activate it again!!

Carlos Souza
Carlos Souza
04/11/2024 03:26

You can count on private investment. Trust us.
This site believes in fairy tales.

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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