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A new railway is about to transform Brazil's logistics! With an investment of R$3,28 billion, Railway 118 promises to connect Rio de Janeiro to Espírito Santo and pave the way for a new cycle of growth. The auction is expected to take place by the end of this year, and construction is scheduled to begin in 2026. Get ready for the future!
A large-scale railway project is set to transform logistics between Rio de Janeiro and Espírito Santo, with a significant impact on the economy and freight transport in Brazil.
The auction for the construction of the Railway 118Also known as Victory-Rio ou Southeast Railway Ring, is scheduled to take place in 2025, with construction starting in 2026.
This project will have a total investment value of $ 3,28 billion of the federal government and promises to improve the connection of the ports of Espírito Santo with other railways in the country.
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What is Railroad 118?
A Railway 118 It will be an essential railway to integrate the states of Rio de Janeiro and Espírito Santo with other important railway networks in Brazil.
According to a Leonardo Ribeiro, national secretary of Railway Transport of the Ministry of Transport, the railway aims to improve the logistics and cargo transportation.
The project was detailed at the Infrastructure and Logistics Seminar, promoted by LIDE Espírito Santo, on March 18th.
The railway will have three main sections, ranging from construction of new roads to modernization of old branches.
With this, the government hopes not only to improve the flow of products, but also boost the economy of the entire southeast region and the country as a whole.
The work schedule
The schedule for carrying out the project EF-118 was detailed by the secretary Leonardo Ribeiro, who mentioned that the auction should take place at the end of 2025.
After the auction, the contract will be signed and works will begin the following year, in 2026.
Ribeiro stated that the objective of the Ministry of Transport is to adopt an innovative concession model, where the winner of the auction will be the one that demands the lowest government participation, seeking as much private investment as possible.
"The idea is to have an efficient partnership between the government and the private sector, so that we can carry out the projects and transform the country's logistics”, said the secretary, highlighting the collaboration of MRS Logística, which has already signaled interest in investing in the construction of this new railway.
The importance of the project
O federal investment of R$ 3,28 billion will be one of the largest in the railway sector in recent years, with a direct impact on the economic development of the southeast region.
The project will mainly benefit the state of Espírito Santo, connecting ports such as the Port of Victoria e Port of Acu, other logistics centers in Brazil, speeding up the transportation of minerals, steel and other industrial products.
The layout of the Railway 118 was divided into three segments: North, Central e Sul, with distinct construction and investment characteristics and requirements.
The first section, the Northern Section/Anchieta Branch, will be a partnership between the government and the OK, who has already committed to a investment of BRL 6 billion for the construction of the section between Santa Leopoldina and Anchieta.
Railway segments and their impacts
Northern Section (Anchieta Branch)
This section will be 80 kilometers long and will be built by OK in return for the early extension of their concessions.
The mining company has already defined an investment of $ 6 billion for this section, which will be integrated into the contract Vitoria-Minas Railway (EFVM).
Central Section
With about 170 km, this new segment will connect the Port of Acu (in Rio de Janeiro) until Anchieta (in the Holy Spirit).
This section will have a major impact on the movement of cargo from the interior to the coast, in addition to improving the region's logistical infrastructure.
Southern Section
This segment, with 325 km, will connect Sao Joao da Barra (RJ) the New Iguaçu (RJ) and will be carried out with additional investments from the federal government.
A Central Atlantic Railroad (FCA) will be used in part of this section, which will optimize costs and execution time.
This section is considered brownfield, that is, it will use existing infrastructure for construction.
Bidding for the Central-Atlantic Railway (FCA)
A Central Atlantic Railway (FCA) will also go through a bidding process.
The current contract with VLI Logistics, controlled by OK and the background Brookfield, ends in 2026.
The federal government, however, is considering rebid the section, aiming to obtain better financial and operational conditions.
Leonardo Ribeiro explained that a study is being carried out to determine the best solution, and the decision must be made by April 2025.
"We are evaluating the possibility of a new tender or even a renewal of the contract with VLI Logística. The study that is currently underway will be completed by the end of this month and will give us a solid basis for making the final decision., explained Ribeiro.”
Criticism of Vale
During the event, the vice-governor of Espírito Santo, Ricardo Ferraço (MDB), made harsh criticisms of OK, which, according to him, did not fulfill its commitments regarding the renewal of the Vitoria-Minas Railway.
In 2020, the mining company committed to executing the section of the EF-118 between Cariacica e Anchieta, but, according to Ferraço, the company did not meet the established deadlines, which caused delays in the execution of the project.
In response, the superintendent of ANTT Rail Transport, Alessandro Baumgartner, stated that the additional investment of OK is still being analyzed by the regulatory agency and that the pressure from the state government It is essential for the mining company to fulfill its commitments.
Expectations for the future
The new project of Railway 118 is seen as a great opportunity for Brazil to improve its logistics infrastructure and reduce cargo transportation costs, especially in the cargo sector. mining and steel industry.
With the adoption of a model innovator of concession and collaboration between the government and the private sector, the project is expected to begin transforming the country logistics, creating new development hubs and generating jobs throughout its implementation.
The expectation is that new railway become a key player in connectivity between the Southeast and Midwest from Brazil, optimizing the distribution of goods and improving Brazil’s competitiveness in the international market.
