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With billion-dollar investments, the largest railways under construction in Brazil are gaining momentum and show a promising future for national logistics

Written by Rafaela Fabris
Published 31/10/2024 às 01:40
With billion-dollar investments, the largest railways under construction in Brazil are gaining momentum and show a promising future for national logistics
High investments in the Brazilian railway network (Image: Reproduction)

In a country where most heavy cargo still travels on potholed and crowded highways, the railways under construction in Brazil are proving to be true “heroes” waiting for their moment to shine. With billions of reais in investments and ambitious projects such as the West-East Integration Railway (FIOL) and the Transnordestina Railway, the stage is set for a logistics revolution that promises to relieve highways, reduce costs and reduce the carbon footprint of transportation operations.

Currently, around 65% of all Brazilian cargo is transported by trucks, while only 15% uses railways. This road model, although essential for the economy, brings high costs and environmental impacts. This is where the railways under construction in Brazil come in as a sustainable and strategic alternative, with the potential to transform the flow of goods and reduce logistical bottlenecks.

West-East Integration Railway (FIOL)

FIOL, one of the largest undertakings The FIOL, one of the largest railway bridges in Brazil, is designed to cross the states of Bahia and Tocantins, connecting Porto Sul in Ilhéus to the North-South Railway in Figueirópolis. With a length of 1.527 km, the FIOL aims to open a strategic corridor for the flow of commodities, especially grains and minerals. This project has an impressive landmark: the largest railway bridge in Latin America, 2,9 km long over the São Francisco River, between Serra do Ramalho and Bom Jesus da Lapa.

Started in 2011, the FIOL 1 section is already 75% complete and is expected to be completed by 2027, while FIOL 2, which started shortly after, is progressing slowly, with around 67% completed. Under a 35-year concession, the company BAMIN is allocating R$13,13 billion to complete the work, which has an average cost of R$6,4 million per kilometer.

Central-West Integration (FICO)

FICO is essential for the flow of agricultural products from the central-west region. With a length of 888 km, the railway is designed to connect grain-producing areas in Mato Grosso to the national railway system. The first section, from Mara Rosa (GO) to Água Boa (MT), received an investment of R$2,5 billion, and the works are expected to be completed by 2028.

This project was started in 2010 and, despite slow progress, represents an important connection between the central states and Brazilian ports, especially benefiting the export of soybeans and corn.

Transnordestina Railway

With a planned extension of 1.753 km, Transnordestina aims to connect the northeastern hinterland to the ports of Pecém, in Ceará, and Suape, in Pernambuco. Although promising for the economy in the northeast, the project has faced numerous challenges over the years, such as stoppages and financing problems. Currently, the project is undergoing a strategic reassessment, focusing primarily on the stretch between Eliseu Martins (PI) and Pecém, with completion scheduled for 2027.

The project, estimated at R$6,7 billion, is crucial for the integration of the backlands into the national transport infrastructure, facilitating the export of grains and minerals from the northeast.

North-South Railway

Considered the “backbone” of Brazil’s railway network, the North-South Railway currently covers more than 4.000 km, from Açailândia (MA) to Estrela D'Oeste (SP). Designed to facilitate the transportation of cargo throughout the country, the North-South Railway is operated by VLI and Rumo Logística, which have invested in improvements and new technologies to increase efficiency.

The project, which began in 1985, has faced a history of delays and revisions. New sections are currently in the planning phase, with plans to expand to the north, as far as Pará, and to the south, as far as Rio Grande do Sul, consolidating one of the most important transport axes in Brazil.

The future of rail transport in Brazil

Railways under construction in Brazil bring robust promises of cost reduction, highway relief and environmental benefits, such as reduced carbon emissions. With more than R$241 billion in investments, the national railway sector is beginning to chart a new route for the flow of cargo, especially agricultural and mineral cargo, meeting a growing demand for sustainable alternatives.

For Brazil, these works are more than just tracks, represent a commitment to efficient infrastructure and long-term connectivity. Completing these railways is still a major challenge, but if the deadlines are met, the positive impact on the Brazilian economy and export competitiveness will be immense. After all, with each kilometer of railway that is completed, the country moves closer to a more integrated, efficient and sustainable logistics future.

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Fernando
Fernando
31/10/2024 06:59

Let's not stop there, we need to compare the speed of expansion of railways in China since 1980, this was one of the drivers of cost reduction and improvement in export capacity that they had

Jose Zortéa
Jose Zortéa
01/11/2024 21:32

From Curitiba to Porto Alegre, we have had the Southern Trunk railway ready for years. Why not use it since it cost us an arm and a leg and passes through a highly developed region?

Alexander S. D
Alexander S. D
In reply to  Jose Zortéa
02/11/2024 18:44

Because the profits from the road transport system are shared with positive externalities that ensure gains for the community and not just for the railway company’s controller. These gains translate into fewer accidents, reduced environmental damage, easier monitoring, etc. In other words, part of the “profit” created by the railway system does not stay with the owner of the capital and this is definitely not in his interest. Here in my region, after taking control of the network, guaranteeing benefits for having acquired part of the network with low traffic density, the concessionaire announced that the section was in deficit and abandoned the lines under its care. As expected, the railways were invaded, destroyed and part of the material stolen. This happened in 1996. After that, nothing was done by the Granting Authority. All the governments that have passed have remained silent. The Judiciary has done nothing and the Legislature has remained silent. And no one has been arrested!

Joseilton
Joseilton
01/11/2024 21:54

Rio Grande do Norte to Paraíba why not use the abandoned line

Antonio
Antonio
01/11/2024 22:07

That they are not just for cargo.

Jorge Hafner
Jorge Hafner
03/11/2024 08:41

IT TOOK A WHILE BUT WE ARE WAKING UP TO THE FUTURE

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Rafaela Fabris

It discusses innovation, renewable energy, oil and gas. With over 1.200 articles published in CPG, it provides daily updates on opportunities in the Brazilian job market.

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