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Promises of R$10 billion to renew concessions and expand railways in Brazil are gaining momentum. The government wants to end the monopoly in the sector, restore abandoned tracks and diversify the cargo transported. Will the project come to fruition this time?
Behind the scenes of national transportation, an old project is once again gaining prominence: the federal government plans to resume railway expansion in Brazil.
Promises, challenges and billion-dollar figures are part of an audacious package that could transform the country's logistics scenario, but will it come to fruition this time?
Railway package and regulatory changes
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The Ministry of Transport is preparing a package of measures that aims to modernize and expand the Brazilian railway network.
Among the main points, according to the newspaper Folha de S. Paul, is the regulation of the right of way, allowing different companies to use the tracks operated by private concessionaires.
This measure, according to experts, has the potential to end the cargo transportation monopoly exercised by large corporations.
Another new feature is the introduction of the “rail freight transport agent”, an independent figure who will be able to operate in so-called “rail slots”.
This change, according to the government, will enable more efficient and competitive management of rail transport.
Resumption of the northern section of the North-South Railway
One of the highlights of the package is the resumption of the northern section of the North-South Railway, a 477 km stretch that connects Açailândia, in Maranhão, to the port of Vila do Conde, in Barcarena, Pará.
This work, which was already part of the former Growth Acceleration Programs (PACs), was never completed.
The new axis will allow the flow of various cargoes, including soybeans, corn, ethanol and sugar, in addition to iron ore.
The diversification of cargo represents a significant opportunity for exporters and national producers.
Restoration of abandoned tracks
Another focus of the government is the recovery of 11,1 km of abandoned tracks, currently scrapped and unusable. This impressive number is equivalent to 36% of the national railway network.
For this to be possible, concessionaires wishing to renew their contracts must compensate the public coffers, generating resources for reinvestment in the sector.
Billion-dollar investments and partnerships
The government intends to make the works viable through auctions, with the participation of public and private resources.
The idea is that the companies that win the auctions depend minimally on public financing. According to sources linked to the Ministry of Transport, the renegotiation of existing concessions will be the main strategy to obtain resources.
For example, a company offering the renewal of the concessions of the Carajás Railway and the Vitória-Minas Railway, operated by Vale, should generate transfers of more than R$10 billion.
These amounts will be used to expand and modernize the railway sector.
Review of the Pro-Trilhos program
During Tarcísio de Freitas's management at the Ministry of Infrastructure, the Pró-Trilhos program promised to revolutionize the sector with more than R$258 billion in planned investments.
However, after three years, few projects have come to fruition. Currently, the only significant progress is from the company Rumo, which is building a railway in Mato Grosso.
The Ministry of Transport, in partnership with the ANTT (National Land Transport Agency), is reviewing permits to identify viable projects and eliminate duplication of applications.
Impacts on the future of Brazilian logistics
With these initiatives, the government seeks to reduce dependence on road transport, which currently accounts for around 65% of cargo flow in Brazil.
The expansion and modernization of the railway network will not only relieve the burden on roads, but will also reduce logistics costs and carbon emissions.
But will these promises be fulfilled? Despite the ambitious plans, implementation challenges, such as bureaucracy, lack of resources and political obstacles, are still significant.
And you, do you think Brazil will finally have a competitive railway infrastructure? Or will it be just another project that remains on paper? Leave your opinion!
Work that begins and never ends!! In the PT governments we know very well how it works, lots of bribes for the comrades and unfinished works!!!
What happened during ****'s government was better: not a single one started!
Change the grass.
The publications on this PETROLEO & GAS website seem to me to be somewhat boastful, with a bias towards the “Great Brazil” of the 70s. Always with figures in billions… I think a more realistic editorial line would be prudent.