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Bahia could lose MORE than 2 THOUSAND KM of railways after company chooses to invest 24 BILLION in other states

Written by Alisson Ficher
Published 19/10/2024 às 20:04
Updated 20/10/2024 às 01:50
Piauí faces the need to qualify almost 85 thousand workers for the industry by 2027, including requalification of professionals.
Piauí faces the need to qualify almost 85 thousand workers for the industry by 2027, including requalification of professionals.

The future of Bahia's railway network is at risk, and the situation appears to be even more complicated than many imagine.

The concession of the Ferrovia Centro Atlântica (FCA), which crosses important states such as Bahia, Minas Gerais and Espírito Santo, is about to undergo a major transformation.

With more than R$24 billion in planned investments, the company VLI Logística may be about to abandon a vital stretch for the state of Bahia, leaving more than 2 thousand kilometers of tracks out of operation.

But what is behind this decision, and how could it affect the region's economic future?

According to information released by the National Land Transport Agency (ANTT), the FCA situation will be debated in a public hearing in Salvador, scheduled for the 18th.

The proposal revolves around extending VLI's contract for another 30 years, which involves the management of 7,8 km of railways in several states.

However, there is an impasse: the company wants to return 2,1 km of tracks, of which 291 km are from Bahia, according to the Federation of Industries of the State of Bahia (Fieb).

Discontinuity threatens Bahian economy

FCA's concession agreement with VLI expires in August 2026.

However, the renewal proposal includes the discontinuation of the section that connects Minas Gerais to Bahia, known as the Minas-Bahia corridor.

This corridor, essential for the transportation of cargo in the state, has already been the target of criticism from the Bahian government and entities in the productive sector, which for decades have denounced the “abandonment” of the rail network. Now, with the possible departure of VLI, uncertainty takes over the local economy.

The management of VLI in the section that goes from Corinto (MG) to Campo Formoso (BA) and Candeias, in the Metropolitan Region of Salvador, is a point of great concern.

Without this corridor, Bahia could face serious logistical problems, harming strategic sectors such as commerce and industry.

Political mobilization grows

The imminent loss of part of this rail network united Bahians and Minas Gerais residents in an unprecedented mobilization.

State Deputies of the Legislative Assemblies of Bahia and Minas Gerais (Alba and ALMG) have been working together to try to prevent the interruption of the Minas-Bahia stretch.

According to information from ANTT itself, there are four options for the future of this operation: keep VLI at the forefront with a new management format, transfer the concession to a new operator, or make a public call to find another solution.

For the Bahian side, the strategy of putting pressure on the federal government has already been put into practice.

A letter was sent to President Luiz Inácio Lula da Silva requesting that the operation be maintained until a new operator is defined, in addition to the modernization of the state's railway network and the creation of a Public-Private Partnership (PPP) for the Minas-Bahia corridor.

Meanwhile, miners are also organizing.

During a public hearing held in September at the Minas Gerais Assembly, mayors, deputies and other local leaders demanded the continuation of the operation.

The consensus is that the decision should take place at the federal level, with pressure being exerted by the benches of both states in the National Congress.

The future of the Central Atlantic Railway

VLI, in a note, reaffirmed that operations in the Minas-Bahia corridor will continue until ANTT defines the future of the concession.

Meanwhile, the company presented four possible paths: maintain the operation as is, with adjustments, or carry out a new bidding process to transfer the concession to another operator.

This process has been closely monitored, and the decision will have a direct impact on cargo transportation between states.

The Ferrovia Centro Atlântica plays a crucial role in the country's logistics, connecting different regions and driving economic growth.

However, the discontinuity of part of this railway network could represent a major setback, especially for Bahia.

With VLI's imminent exit from operations in Bahia, the regional economy runs the risk of being seriously harmed.

What lays ahead?

With the public hearing scheduled for Salvador, the expectation is that the government and society can find a solution to guarantee the continuity of the operation of the Minas-Bahia corridor.

Bahia, which already suffers from logistical problems, cannot afford to lose such an important structure for the flow of its production.

The question remains: will the state be able to prevent this discontinuity, or will VLI's billion-dollar decision have irreversible impacts on the Bahian economy?

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Alexandre Theodoro
Alexandre Theodoro
23/10/2024 12:21

Country of 'M' management of 'M' results in this eternal sleeping giant. Regrettable

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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