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With unfinished works and blocked resources, the Transnordestina Railway continues to be a promise for the economic development of the Northeast, but faces bureaucratic and financial challenges.
The Transnordestina Railway is one of those megaprojects that bring with it great promises of economic development, especially for the Northeast of Brazil. However, this project, which began in 2006, continues to face a series of delays and challenges, being a clear example of the so-called unfinished projects of the Transnordestina. With 18 years of promises and little concrete action, the railway has become a sensitive issue for governments and for the population that awaits the long-awaited progress that it should bring.
What is the Transnordestina railway?
The Transnordestina Railway was designed as one of the main solutions to boost the development of the Northeast region, connecting the interior of the country with the ports of Pecem (CE) e Suape (PE). The idea is simple: to facilitate the flow of agricultural and mineral production, reduce transportation costs and, of course, attract new investments to the region. With a planned extension of approximately 1.753 km, the railway passes through important cities in the Northeast, promising to transform the region's logistics scenario.
However, the reality is far from being as simple as the original project suggested. To this day, much of the work remains unfinished, facing difficulties ranging from the release of funds to logistical and bureaucratic problems.
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R$1 billion in funding is delayed and works on the Transnordestina Railway megaproject remain at a standstill in some sections
Recently, the Transnordestina Railway megaproject was once again the subject of discussions due to the delay in the release of R$1 billion in funding to speed up construction. This amount would be used to start sections in important cities in Ceará, such as Aracoiaba, Baturité, Caucaia, Itapiúna and Pecém. However, the funds, which should have been released between September and October 2023, remain tied up in bureaucratic processes.
According to the Superintendence for the Development of the Northeast (Sudene), the amount is being analyzed by the Banco do Nordeste (BNB), and there is no exact forecast for when this stage will be completed. This slowness has been one of the biggest obstacles to the advancement of the project, leaving many parts of the railway at a standstill and contributing to the increasing frustration of the population and investors.
The R$3,6 billion addendum and the future of the railway
The R$1 billion is part of a larger addendum, worth a total of R$3,6 billion, intended to finally complete the unfinished works of Transnordestina. The project is divided into eleven lots, four of which have not yet begun. Meanwhile, the works continue to advance slowly in the municipalities of Acopiara, Piquet Carneiro, Quixeramobim and Quixadá, all in Ceará.
During a visit to Ceará in August 2023, the Minister of Transport, Renan Filho, demanded agility from Transnordestina Logística S/A (TLSA), the company responsible for the construction. In response, the company stated that it depends on the release of funds to speed up the work.
To try to resolve the issue, the federal government set up a task force involving several bodies, such as the Presidency of the Republic, the Ministry of Transport, Banco do Nordeste and the Companhia Siderúrgica Nacional (CSN).
The role of the government in completing the megaproject
The federal government, together with Sudene and other agencies, is working to make the completion of this megaproject possible. The national secretary of Funds and Financial Instruments of the Ministry of Integration and Regional Development (MIDR), Eduardo Corrêa Tavares, stated that the release of the funds is being treated as a priority by the Lula government. The expectation is that the addendum will be signed by the end of October 2023, but, as we have seen over the years, promises and deadlines are not always fulfilled when it comes to the Transnordestina Railway.
Sudene also reported that, after signing the addendum, the federal government will work to raise additional funds through the Northeast Development Fund (FDNE), one of the main sources of financing for major projects in the region. However, the release of this funding still depends on the analysis of Banco do Nordeste, which has not yet given a clear forecast of when the process will be concluded.
The Impact of the Transnordestina Railway on the Northeast
When (or if) the Transnordestina Railway is completed, the impact on the Northeast could be enormous. The railway will facilitate the flow of agricultural produce, such as soybeans and corn, as well as mineral products, such as iron. The direct connection with the ports of Pecém and Suape will reduce logistics costs, increasing the region's competitiveness on the national and international scene.
The completion of the railway could attract new investment to the Northeast, helping to create empregos and boost the region’s economy. Efficient transportation infrastructure is one of the main factors that large companies consider when deciding to invest in a state. Therefore, the completion of the Transnordestina Railway could be a turning point for the development of one of the most deprived regions in Brazil.
The megaproject that still dreams of getting off the ground
The Transnordestina Railway is undoubtedly one of the largest infrastructure projects ever planned for the Northeast. However, the reality of the unfinished works on the Transnordestina shows how much the country still faces challenges in completing large-scale projects. With the release of funds tied up in bureaucratic processes and the lack of speed in decision-making, the future of the railway remains uncertain.
While the federal government, together with companies and banks, tries to unlock the resources needed to complete the project, the population of the Northeast continues to wait for the development promises that this megaproject represents to be fulfilled. It remains to be seen whether the coming months will bring the long-awaited speed so that the Transnordestina Railway can finally be completed and begin to bring the promised benefits to the region.
