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Bahia is at risk of losing 2 km of railways due to the lack of renewal of the concession of the Ferrovia Centro Atlântica (FCA), operated by VLI. The public hearing revealed discontent with the abandonment and lack of investment in the stretch.
Government and businesspeople demand modernization and evaluate alternatives to save the railway infrastructure and avoid economic losses.
The situation of the Bahian railway network has reached its limit.
With a concession about to expire and a stalemate between the concessionaire VLI and the government of Bahia, the state is on the verge of losing 2 kilometers of railways.
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Meanwhile, the future of Railway Centro Atlântica (FCA), vital for the transportation and flow of goods, remains suspended, generating intense public debates and strong opposition from various sectors in Bahia.
The public hearing held in Salvador revealed widespread dissatisfaction among Bahians regarding the performance of VLI, responsible for granting the FCA.
Businessmen, politicians and experts expressed their discontent, highlighting the disregard with which VLI treats the railway sections that cross Bahia.
According to unanimous opinions, the renewal, without substantial changes, would reward the concessionaire, despite its history of abandonment and lack of investment in local railway infrastructure.
Challenges and demands for modernization
The Federation of Industries of Bahia (Fieb) also spoke out, emphasizing the need to include a project to modernize the corridor rail between Minas Gerais and Bahia.
VLI, however, claims that the stretch does not have enough load to justify new investments..
This argument was challenged during the hearing, where several companies reported that they could use the railway, but hesitated due to the instability in the renewal process, which has been dragging on since 2015.
Studies by the Dom Cabral Foundation show that the potential load on the stretch could make it economically viable, disproving the VLI justification.
According to the newspaper Valor Econômico, four alternatives are being considered for the operation of the railway:
- Keep VLI as operator, following the current format;
- Maintain VLI with a modified operational format;
- Bid the section to a new company;
- Make a public call to attract new operators.
Despite these options, VLI, controlled by Brookfield and Vale, remains resistant.
The company stated that the modernization of the Bahian stretches would cost R$25 billion, a figure that analysts consider to be overestimated.
According to independent estimates, modernizing the 795 km stretch between Corinto (MG) and Campo Formoso (BA), including switching to broad gauge, would cost around R$6 billion, a more realistic value.
Positions of Bahian authorities and experts
Economist and former planning secretary of Bahia, Armando Avena, argues that VLI must be responsible for the modernization and operation of the Corinto-Campo Formoso section.
For him, a new bidding process would cause significant delays, in addition to removing Bahia from the railway map being developed for the Northeast-Southeast axis.
He suggests that the continuation of VLI with a contractual renewal requiring improvements in the Bahia section would be the most practical and beneficial solution for the state.
Antônio Carlos Tramm, former president of the Bahian Mineral Research Company (CBPM) and responsible for commissioning the study from the Dom Cabral Foundation, reinforced the criticisms.
Tramm stated that VLI is responsible for the deterioration of the Bahian railway network and suggested compensation to the state government of around R$10 billion, an amount that could finance a Public-Private Partnership (PPP) to begin construction of a new railway.
Bahian government and economic impacts
The position of the government of Bahia is also clear.
During the public hearing, the Chief of Staff of the Jerônimo Rodrigues government, Afonso Florence, highlighted the economic and social damage caused by the poor management of VLI in the Minas-Bahia railway corridor.
Florence emphasized that investments in Bahia's railway infrastructure are urgent and must be a condition for the renewal of the concession.
For the secretary, updating and requalifying the railway network are essential measures to compensate for the economic losses that the state has suffered due to the abandonment of railway transport.
Florence believes that Bahia cannot accept a new contract without robust guarantees that the stretch will be modernized and expanded to meet the region's logistical and economic demands.
The future of the railway: between resistance and negotiation
VLI remains firm in its position, and tension between the company and the Bahian government increases as the deadline for the decision on the concession approaches.
The next steps will define the future of a major rail network that connects states and drives local economies.
If the concession is not renewed or if the government of Bahia fails to reach an advantageous agreement, the state could lose a vital infrastructure that connects the Northeast to the Southeast of the country, with profound impacts on freight transport and economic development.
Do you think the state should seek new partners to modernize its railway network? Is VLI capable of transforming Bahia's railway system? Leave your opinion in the comments.
Vli equal or worse than via bahia
The disregard and nefarious purpose of VLI regarding the Bahian railway network is clear. Its intention is to bring the state to its knees in the name of exorbitant profits only in the section that interests it. The pure and simple intention is to isolate the state from the SE and NE, since the Alagoinhas-Propria branch line is closed. I hope the government stands firm and collects the 10 billion reais fine and uses this money to take the initiative to renew our entire network. And never make the same mistake again.
I traveled along this stretch of Bahia Minas Gerais at the time of the Brazilian East to M. Azul. From there it was the Minas Gerais stretch. Today this railway network is completely worn out. The investments are really high to make it viable.
It is necessary to analyze the costs. The interesting thing would be to negotiate with FCA itself. Another concession will probably be more expensive.