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Brazil is preparing for one of the largest investments in railway infrastructure in its history. But will these billions really make a difference?
The Central-Atlantic Railway (FCA), which already occupies the position of the largest railway line in the country, is about to undergo a transformation that promises to increase the rail transport to a new level.
The early renewal of the concession, which involves an impressive amount of R$30 billion, is not just a financial commitment; It is a bet on modernizing a vital sector for the national economy.
Billion-dollar investment in infrastructure
According to information from VLI Multimodal, controller of FCA, 80% of this amount, or approximately R$24 billion, will be allocated to the railway infrastructure, including the acquisition of new wagons and locomotives.
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The promise is that these resources will generate significant impacts on transport capacity, with a 46% increase in cargo volume, something that could directly benefit industries such as agribusiness, steel and civil construction.
Concession renewal: what is at stake?
With the signing of the new contract, scheduled to take place after public consultations that will run from September 30th to October 7th, Brazil's railway scenario should enter a new era.
This renewal, which guarantees the concession for another 30 years, includes fundamental improvements to 7,8 kilometers of tracks that cross eight states, from Minas Gerais to São Paulo, to the Federal District.
Popular participation and project updating
According to ANTT (National Land Transport Agency), there are no significant obstacles that could block this process, and the reopening of the popular participation process is seen as a crucial step to update the project according to local needs.
Additionally, we bring VLI highlights that another R$5 billion will be allocated to concessions and compensation, with part of the resources directed to resolving urban conflicts in 35 cities and improving rail access to the Port of Aratu, in Bahia.
Modernization of tracks and expansion of railway capacity
This modernization doesn't stop there. Investments are planned in new tracks in the Minas-Bahia and Minas-Rio corridors, which should strengthen the connection between strategic regions of the country.
The construction of new railway yards This is another measure that promises to increase operational efficiency, preventing trains from having to wait for trains to transit in the opposite direction, ensuring greater safety and agility in transport.
Economic impact and job creation
According to information released by the controller VLI, in addition to the direct benefits for cargo transportation, these investments should generate around 10 thousand direct jobs, boosting socioeconomic development in the regions served by the railway.
The impact of these billions of reais will still be felt in the coming years, as the works progress and the new systems come into operation. The question that remains is: will the modernization of this railway be sufficient to meet the growing demands of the Brazilian economy over the next 30 years?
VLi is located in a large region that produces coffee, soy, corn and wheat, less than 800 meters from the other largest railway in the country, MRV, in the city of Andrelândia, where a Dry Port can be built to store grains from the South of Minas Gerais and Campos das Vertentes for export to the Ports of Angra dos Reis and Sepetiba, Rio de Janeiro.
Yes. Railways are the logistics solution for any country.
The right thing to do was to take the train from the north of the country to the south, and arriving at the country's ports, to be transported by ship 🛳️ to other countries.
It took a while!