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Does the railway industry still have a chance to prosper in Brazil? Rail transport is a much cheaper, safer and more sustainable logistical method, butโ€ฆ it is moving slowly, despite the efforts of the previous administration

Written by Paulo Nogueira
Published 23/06/2024 ร s 16:48
Freight train '3' traveling along tracks in the Brazilian countryside, with a truck nearby, symbolizing intermodal logistics.
A modern freight train, designated as '3', transports diverse loads through the Brazilian rural landscape, demonstrating the efficiency of logistical intermodality in the country

Parliamentary Front is trying to continue the legacy of the PRร“-TRILHOS program to reestablish the Brazilian railway industry, increase competitiveness and generate jobs

On June 19th, in Brasรญlia, an important step was taken towards the advancement of the railway industry in Brazil with the launch of the Parliamentary Front for the Strengthening of the Brazilian Railway Industry. This initiative, which already has the support of 209 deputies, marks a decisive moment for the national railway industry, demonstrating a robust legislative commitment to the development and modernization of this strategic sector.

Context and Importance of the Parliamentary Front

The event was more than a formal ceremony; It represented a collective commitment to addressing the critical needs of a sector that is fundamental to the country's logistics and economy. Federal deputy Pedro Uczai (PT/SC), president of the Front, highlighted the group's dual mission: improving legislation and strengthening dialogue between the railway industry and the government. The intermodality, safety and sustainability of rail transport were highlighted as essential for the country's development, a vision shared by industrial leaders and parliamentarians present.

Parliamentary Front for Strengthening the Brazilian Railway Industry is launched with the membership of 209 deputies
Photo: Josรฉ Eduardo Guidi, director of Railway Infrastructure at DNIT;
Vicente Abate, president of ABIFER; Federal Deputy Denise Pessรดa (PT/RS), second vice-president of the Front;
Federal Deputy, Pedro Uczai (PT/SC), president of the Front; Leonardo Ribeiro, National Secretary of Transport
Railway of the Ministry of Transport and
Massimo Giavina, first vice-president of SIMEFRE and Advisory advisor to ABIFER.
(Abifer disclosure)

The Strategic Role of the Railway Industry

Massimo Giavina, first vice-president of SIMEFRE, and Vicente Abate, president of ABIFER, reinforced the importance of engaging the entire society in strengthening the railway industry, which is strategic not only for cargo transport, but also for passenger transport. They emphasized the need for high quality products and adequate technical support, contrasting the robustness of the national industry with the problem of importing low quality products.

Expected Economic and Sustainable Impacts

The Parliamentary Front is committed to replacing the fleet of old wagons and locomotives with technologically advanced and sustainable models, promising significant reductions in fuel consumption and CO2 emissions. This renovation aims not only to improve energy efficiency, but also operational safety, increasing dealership productivity by at least 30%.

A The introduction of new sustainable technologies in the railway industry is one of the main pillars of the Parliamentary Front for the Strengthening of the Brazilian Railway Industry. Advanced technologies promise not only significant fuel savings, but also a considerable reduction in greenhouse gas emissions, aligning the railway sector with global sustainability guidelines.

Challenges and Legislative Proposals

Federal deputy Mauro Pereira (MDB/RS) and other members highlighted the robust support that the Front has already received, indicative of a significant potential to advance legislative proposals that resolve labor, social and environmental obstacles that currently limit railway development. The proposed legislation aims to harmonize the sector's needs with existing regulations, ensuring continuous and sustainable growth.

The Parliamentary Front for the Strengthening of the Brazilian Railway Industry seeks to create a legislative environment that promotes the sustainable development of the railway industry. This includes the harmonization of legislation to avoid the interruption of railway projects due to labor, social or environmental issues, allowing the railway industry to develop continuously and sustainably.

Future Goals and Sustainability

Among the Front's goals is the increase in railway participation in the Brazilian freight matrix from 27% to 40% by 2035, which reflects an ambitious state policy by the Ministry of Transport. Other objectives include the inclusion of the railway industry in the MDIC's โ€œMOVERโ€ program, seeking financing and incentives from BNDES and the Climate Fund to further promote sustainable development.

The inclusion of the railway industry in the MDIC โ€œMOVERโ€ program is one of the priorities of the Parliamentary Front for the Strengthening of the Brazilian Railway Industry. The objective is to obtain financing and incentives from BNDES and the Climate Fund, which will allow for an even more sustainable development of the railway industry, promoting technological innovations and job creation.

PRO-TRILHOS Program of the Bolsonaro Government

Prรณ-Trilhos Program encourages train transport in the country | NOW CNN

In addition to the Parliamentary Front's initiatives, the PRร“-TRILHOS Program, launched during Jair Bolsonaro's government, represents an important milestone in Brazil's railway development. Established by Provisional Measure No. 1.065/21, PRร“-TRILHOS aims to increase the attractiveness of the private sector to carry out investments in railways, whether new (greenfields) or using existing infrastructure (brownfields). This program allows private companies to build and operate railways, significantly expanding the Brazilian railway network.

By the end of 2022, PRร“-TRILHOS had received 76 applications for the construction and operation of railways, totaling more than 19 thousand kilometers of new private railways and investments in excess of R$224 billion. These investments are 100% private and have the potential to generate millions of direct and indirect jobs, in addition to reducing logistics costs and CO2 emissions. The expectation is that the increase in railway infrastructure will not only improve the competitiveness of the sector, but also promote more sustainable and balanced development in the country.

PRร“-TRILHOS also highlights the importance of railways in the Brazilian transport matrix. With the increase in the railway network, greater efficiency in freight transport is expected, reducing dependence on road transport and associated costs. This program complements the goals of the Parliamentary Front by seeking greater integration and efficiency in the Brazilian transport system.

Employment, Income and Competitiveness

Another fundamental aspect of the front is the generation of jobs and income, in line with the inclusion of the railway industry in the MDIC's โ€œMOVERโ€ program, with access to financing and incentives from BNDES and the Climate Fund. This aims not only to boost the competitiveness of the national industry, but also to ensure an adequate supply of spare parts and technical assistance, differentiating national products from low-quality imported ones.

The launch of the Parliamentary Front for the Strengthening of the Brazilian Railway Industry, together with the Bolsonaro government's PRร“-TRILHOS program, represents a testimony to the growing recognition of the strategic importance of the railway industry for the future of Brazil. With a clear action plan and significant support from Congress, there is a promising path ahead for developing a rail infrastructure that is both robust, efficient, and sustainable. This is a moment of transformation that could very well define the next era of rail transport in the country, boosting the national GDP and improving the quality of life of Brazilians through more effective and sustainable logistics.

The Parliamentary Front not only aims to solve current problems, but also plans for the future. With the increase in the railway share in the Brazilian freight matrix, a significant reduction in logistics costs and greater energy efficiency are expected. In addition, the implementation of ESG policies in the railway industry's production chain will help achieve greater environmental sustainability.

The harmonization of legislation is crucial to ensure that railway projects are not paralyzed due to labor, social or environmental issues. The Parliamentary Front for Strengthening the Brazilian Railway Industry works to create a legislative environment that promotes the sustainable development of the railway industry, allowing it to grow continuously and sustainably.

With significant support from Congress and a clear action plan, the Parliamentary Front for Strengthening the Brazilian Railway Industry is positioned to transform the country's railway industry. This is a moment of transformation that could very well define the next era of rail transport in Brazil, boosting the national GDP and improving the quality of life of Brazilians through more effective and sustainable logistics.

In summary, the Parliamentary Front for the Strengthening of the Brazilian Railway Industry, together with the PRร“-TRILHOS program, represents a significant commitment to the development and modernization of the country's railway infrastructure. With a focus on innovation, sustainability and efficiency, the team is prepared to face challenges and take advantage of opportunities that arise, ensuring a prosperous and sustainable future for the Brazilian railway industry.

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Antonio
Antonio
24/06/2024 03:53

Passenger rail transport has become a challenge, as the private sector prefers cargo, which is more profitable. Granting railway concessions could compromise the mobility of passenger transport.

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Paulo Nogueira

An electrical engineer graduated from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), I worked for several years in the areas of offshore oil and gas, energy and construction. Today, with over 8 publications in magazines and online blogs about the energy sector, my focus is to provide real-time information on the Brazilian employment market, macro and micro economics and entrepreneurship. For questions, suggestions and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes for this purpose.

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