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Railroad 118 (EF-118), known as Vitória-Rio, will receive an investment of R$3,28 billion from the federal government. The project aims to connect the ports of Espírito Santo and Rio de Janeiro to the national rail network, using an innovative concession model that promises to transform cargo transportation in the country.
In an initiative that promises to revolutionize national logistics, the federal government is preparing a billion-dollar investment in a new railway, aiming to integrate strategic regions and boost economic development.
This ambitious project, awaited for decades, is finally taking shape and promises to transform the railway transport scenario in Brazil.
Railway 118 (EF-118), also known as Vitória-Rio or the Southeast Railway Ring, is about to become a reality.
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With an investment of R$3,28 billion from the federal government, the railway will connect the ports of Espírito Santo and Rio de Janeiro to the national railway network, strengthening the transport infrastructure in the Southeast.
According to federal government, the concession auction is scheduled for the first quarter of 2026, with the contract being signed in the third quarter of the same year.
Innovative concession model
The EF-118 project presents an unprecedented concession model in the Brazilian railway sector.
The federal government will contribute R$3,28 billion to the construction of the railway, with most of these resources being transferred to the winner of the bid in the first four years.
The selection criteria will be the greatest reduction in the aid amount predetermined by the government, that is, the company that offers the greatest discount on the expected contribution will win.
Marcelo Fonseca, superintendent of Infrastructure Concessions at the National Land Transport Agency (ANTT), highlights that this approach aims to make the project viable and attract private investment, increasing the project's internal rate of return.
The concession will last 50 years, ensuring stability and security for investors.
Division of the railway route
The EF-118 route is divided into three main segments:
Northern Section/Anchieta Branch: Approximately 80 km long, this section between Santa Leopoldina and Anchieta will be built by the mining company Vale as compensation for the early extension of its railways, forming part of the Vitória-Minas Railway (EFVM) concession contract.
Central Section: New route of approximately 170 km connecting São João da Barra (RJ), passing through Porto do Açu, to Anchieta (ES).
Southern Section: Approximately 325 km long, it will connect São João da Barra to Nova Iguaçu (RJ) and could be implemented as an additional investment, if activated by the federal government. This section foresees the use of existing parts of the Ferrovia Centro-Atlântica (FCA).
Economic and operational impact
It is estimated that the implementation of the EF-118 will require investments of R$4,6 billion, in addition to R$4,4 billion in operational costs, such as personnel expenses.
The railway is expected to start operating in 2033, after eight years of construction work starting in 2025.
With a total length of 475 km, the EF-118 will cross 23 municipalities in the states of Rio de Janeiro and Espírito Santo, promoting regional and national integration.
The main cargoes to be transported include hot briquetted iron (HBI), pig iron, iron ore destined for export and coking coal, products of great importance to the Brazilian economy.
Unprecedented participation of the Union
Leonardo Ribeiro, National Secretary of Rail Transport, highlights that the direct participation of the Union in the provision of resources is a novelty in the railway sector.
According to him, this model guarantees transparency and security for investors, allowing for more agile project execution.
“We are adopting a model that we hope mark the beginning of a new era for the country's railways, integrating logistics and increasing efficiency in cargo transportation”, says Ribeiro.
Next Steps
After the public hearings held in January 2025, ANTT will analyze the contributions received, with the announcement expected to be published in the fourth quarter of 2025.
The auction will take place in the first quarter of 2026, and the contract is scheduled to be signed in the third quarter of the same year.
With the implementation of EF-118, Brazil takes a significant step towards modernizing its transportation infrastructure, promoting national integration and sustainable economic development.
Do you believe that the EF-118 will mark a new era for Brazilian railways, revolutionizing cargo transportation in the country? Leave your opinion in the comments!
Unfortunately, public-private partnerships in the railway sector and others, with project execution contracts without clearly defined dates for completion of works, with few inspections by contractors and without strict requirements and dates in the concession projects, such facts open gaps and mean that, in most of these railway network expansion programs, they are doomed to failure, due to non-completion of what was promised. For example, the North-South Railway took 25 years to complete its main section.
Let us remember the glorious times in Brazil of the government of President JK, whose government alone, without partnerships or concessions, in the distant 50s, built and inaugurated Brazil, DF, and built the main paved roads, connecting several state capitals to the Federal Capital, in just 03 years.
The only thing missing is not having passenger transport together.
Government that does not end Transnordestina. PT government. Born in Pernambuco. City of cadets. Terrible government. Unemployment and hunger, Lula out