The Mega Railway That Will Change Brazil! Lula Announces BILLION-Dollar Investment to Resume Transnordestina Works, Leaving Northeasterners Celebrating!

Written by Ruth Rodrigues

Published on 06/08/2024 at 17:50

Foto: Canva

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Last Friday, (02/0), a new phase for the Transnordestina railway was initiated with the sanction of the Social Infrastructure Investment Fund (FIIS) by President Luiz Inácio Lula da Silva. The ceremony took place at the Port of Pecém, in São Gonçalo do Amarante, Ceará, and marks the return of the railway expansion works, which will receive a significant investment of R$ 3.6 billion from the government.

Creation of the FIIS and Resources for the Transnordestina Railway

The FIIS, the result of a collaboration between the Government and the National Congress, aims to finance various infrastructure projects, including the completion of the Transnordestina railway.

The new law allocates R$ 3.6 billion for this project, with the aim of resuming and accelerating the works.

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History and Challenges of the Transnordestina Railway

The Transnordestina railway has a long history, marked by various challenges and stoppages.

The project began to be discussed in the 20th century, when economist Celso Furtado highlighted the need for a railway that connected the Northeast region to the rest of Brazil.

Since then, sections have been built and abandoned, and the project has faced several interruptions.

President Lula mentioned that the project came onto his personal radar in 1989, during his first presidential campaign, after a conversation with former Pernambuco governor Miguel Arraes.

Lula recalls that during his first term, he attempted to initiate the works but faced difficulties due to differing interests and political interpretations.

After a series of meetings and legal milestones, the project gained some momentum but suffered new delays.

Structure and Administration of the Fund

The FIIS was created to ensure that resources are allocated efficiently and transparently.

The law establishes that the fund will be funded by budget allocations, loans, and agreements.

The administration of the fund will be handled by a management committee coordinated by the Civil House.

The expectation is that the FIIS will raise about R$ 10 billion, with R$ 3.6 billion earmarked exclusively for the Transnordestina.

In addition to financing the railway, the fund will also allow for the renegotiation of loans with the Northeast Bank (BNB) and permit new disbursements.

Between 2024 and 2026, the fund is expected to release R$ 1 billion per year for the project, with an additional R$ 600 million in 2027.

These resources will allow for the completion of over a thousand kilometers of tracks, essential for connecting Ceará, Piauí, and Pernambuco.

Impact and Future Perspectives

The Transnordestina is considered one of the largest infrastructure projects in Northeast Brazil.

The completion of the railway is seen as a priority for the Government, which intends to integrate it into the Low Carbon Hydrogen Legal Framework project, sanctioned at the same ceremony.

This project aims to adapt the Port of Pecém for the production of green hydrogen, connecting it to the Transnordestina and potentially transforming the region.

Minister Renan Filho emphasized that the completion of the Transnordestina will significantly contribute to the economic development of the region, improving the transport of grains, fertilizers, cement, fuels, and ore.

The delivery of Phase 1 is scheduled for 2027, with Phase 2 completed by 2029. The project is crucial for the Brazilian trade balance and for the development of the northeastern states.

The Transnordestina project has a total extension of 1,209 kilometers, connecting Eliseu Martins, in Piauí, to the Port of Pecém, in Ceará, passing through Salgueiro, in Pernambuco.

A 548-kilometer branch that departs from Salgueiro towards Pernambuco will also be built.

This branch was initially excluded from the concession contract but was reintegrated into the New PAC, with a forecast of R$ 450 million for its construction.

The Ministry of Transport published a notice for hiring the company responsible for the executive project of the Pernambuco branch in April this year.

This stretch is crucial for the flow of products from the region and will have a significant impact on the local economy.

The Mega Railway That Will Change Brazil! Lula Announces BILLION-Dollar Investment to Resume Transnordestina Works, Leaving Northeasterners Celebrating!

Creation of the FIIS and Resources for the Transnordestina Railway

History and Challenges of the Transnordestina Railway

Structure and Administration of the Fund

Impact and Future Perspectives

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The Mega Railway That Will Change Brazil! Lula Announces BILLION-Dollar Investment to Resume Transnordestina Works, Leaving Northeasterners Celebrating!

Government Announces R$ 3.6 Billion to Resume Works on the Transnordestina Railway with the New Social Infrastructure Investment Fund.

Creation of the FIIS and Resources for the Transnordestina Railway

History and Challenges of the Transnordestina Railway

Structure and Administration of the Fund

Impact and Future Perspectives

The Soviet Union spent 22 years drilling into the Earth’s crust and reached a depth of 12,262 meters — they found water where it was thought impossible, hydrogen bubbling from the rock, granite that is 2.7 billion years old, and temperatures of 180 degrees that melted the drill bits.

Egypt wants to draw 10 million cubic meters of water from the Nile per day into the desert, irrigate a new agricultural frontier, and build a city where there is currently only sand.

Norway is drilling 27 kilometers of rock 392 meters below the bottom of a fjord to build the world’s largest and deepest underwater road tunnel — when completed, a 21-hour journey will be reduced to 10.

An astronaut spent 340 days in space while his twin brother stayed on Earth, and NASA found a “rejuvenating” effect, genes, microbiome, cognition, and immune system that revealed the biological cost of living outside the planet.

Xiaomi launches new smart stove with titanium sensor and automatic shutdown that detects an open flame without supervision.

China has just successfully tested the world’s first ground effect maritime vehicle, a craft that flies up to 6 meters above the water at 200 km/h, uses quantum technology and 6G communication, and can rescue patients in the middle of the ocean.

The largest railway under construction in the Northeast will complete 20 years of construction in June — spanning 1,206 km, with R$ 14.9 billion invested, 727 km completed, and 53 cities that waited 67 years to see the first cargo train cross the sertão towards the sea.

While in Brazil the Transnordestina has been waiting for 67 years, China began drilling 29 tunnels through the mountains of Central Asia to build the first railway connecting three countries — it’s 523 km, US$ 4.7 billion, and 5,000 workers cutting rock at 3,000 meters of altitude

While the São Paulo-Rio high-speed train has never left the drawing board, the largest railway under construction in Brazil is advancing 1 km per day in Mato Grosso — 73% of the 743 kilometers are already completed and R$ 5 billion have been invested.

While in Brazil the São Paulo-Rio high-speed train never materialized, China plans to tunnel 120 km under the sea to connect two cities by rail — 90 km will be underwater, with trains at 250 km/h, and the 8-hour journey will be reduced to 40 minutes.

An engine that consumes 40% less gasoline than the average new car already exists and runs on 100% renewable fuel that costs only 10 cents more per liter at Repsol stations.

Starting in 2027, stores will only be able to sell refrigerators of categories A, B, and C, which are, on average, 17% more energy efficient, and the change promises to reduce almost 6 million tons of carbon dioxide by 2030.

CEO of a space company states that humans will live on the Moon within this decade and that the base will be an inflatable habitat with life support in a place where no one has set foot for over 50 years.

Brazilians can now pay with Pix abroad by scanning a QR Code in partner stores in the United States, Argentina, Portugal, France, Paraguay, and Chile, but the system charges a 3.5% IOF and does not yet work in all establishments.