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Abandoned Brazilian railways? Lula government takes new measures and announces the separation of the Western Network into two parts and renovation works on the Transnordestina

Written by Ruth Rodrigues
Published 29/08/2024 às 18:10
The Government plans to divide the Malha Oeste into two projects, renew sections of the Transnordestina and resume works in Pernambuco.
Photo: João Lavor/TLSA

The Government plans to divide the Malha Oeste into two projects, renovate sections of the Transnordestina railway and resume works in Pernambuco.

The Federal Government is studying the division of the Western Railway Network into two separate projects. One of these projects aims to serve the region of Mato Grosso do Sul, connecting it to the Paraguay River waterway, while the other aims to connect the state to the São Paulo railway network. In addition, the government is prioritizing the early renovation of two railway sections. One of them is part of the old network of Transnordestina Railway, while the other is from Ferrovia Tereza Cristina (FTC). The renovation of these sections is seen as essential to improve cargo transportation in the Northeast and other regions of the country.

The division of the Western Network by the government

It division was suggested during the public hearings held, where difficulties and differences in relation to the initial project were discussed.

The concessionaire Rumo, which had expressed interest in returning the section, is now considering a new agreement to operate the part that connects to the waterway and return the other part.

If this negotiation is completed, it will be mediated by the Federal Court of Auditors (TCU), through the External Control Secretariat (Secex Consenso).

The division of the Malha Oeste is one of the government's strategies to better meet regional needs and optimize the use of the railway.

Companies operating in the region, such as Eldorado and Suzano, which have cellulose factories, have shown interest in the returned sections.

They have already requested authorization to build private railways in the area. The expectation is that these companies will operate the returned sections, under the new concession model.

Early renewal of sections of Transnordestina

A dealership responsible for the former Transnordestina network, part of the CSN group, expressed interest in maintaining the operation of a section that connects the port of Itaqui, in Maranhão, to Ceará.

This section is strategic, as it connects with the New Transnordestina, which is being built by the company in Ceará, towards Piauí.

However, for this renewal to happen, a process of settling accounts is necessary between what the company owes the government and what it has to receive for the investments made.

The TCU's Secex Consenso has already established a standard for dealing with these railway section return processes.

However, there are still challenges to be faced, such as sections destroyed by heavy rains and the need to share lines with Nova Transnordestina.

Government investments in the new Transnordestina in Pernambuco

Another highlight in the initiatives of the government is the resumption of investments in the New Transnordestina, specifically in the section that connects Petrolina to the port of Suape, in Pernambuco.

This section, which was returned by the concessionaire, will have its works continued with public resources.

The government's objective is to make the section viable for a future concession.

According to Marcus Cavalcanti, special secretary of the Investment Partnerships Program (PPI), the continuity of these works is a strategic decision, determined by President Lula.

The priority is to complete this project, which has been underway for around 30 years.

However, there are still challenges to be overcome, such as the necessary expropriations in areas close to the port of Suape.

Cavalcanti reinforced the government's commitment to addressing these obstacles and completing the works, bringing significant improvements to the region's railway infrastructure.

Perspectives for the Tereza Cristina railway and the Malha Sul

In the case of Railway Tereza Cristina (FTC), who transports coal in Santa Catarina, early renewal is also on the agenda.

Federal legislation guarantees the continued operation of this railway, which may facilitate the renewal process.

The government considers this renewal essential to maintain the flow of cargo in the region, ensuring the sector's competitiveness.

On the other hand, the Southern Network, operated by Rumo, faces significant challenges.

Negotiations between the concessionaire and local and federal governments have been marked by disagreements, especially in relation to the projects proposed by the company and the demands of local society.

Recent damage to the railway structure, caused by heavy rains in the region, has made the project even more complex.

In view of these challenges, the tendency is for the Southern Network to be divided into smaller, more economically viable sections, to be put out to tender again.

Infra SA, a state-owned company responsible for structuring projects for the Ministry of Transport, is already conducting studies for the re-tendering of all railway networks, including those undergoing renewal.

These initiatives demonstrate the government's efforts to revitalize and modernize the Brazilian railway system, seeking solutions that meet both regional needs and the country's economic demands.

The division of the Malha Oeste, the renewal of Transnordestina and FTC, and the new investments in Nova Transnordestina are important steps to ensure the efficiency of cargo transportation in Brazil, strengthening the logistics infrastructure and promoting economic development.

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Ruth Rodrigues

Graduated in Biological Sciences from the State University of Rio Grande do Norte (UERN), she works as a writer and scientific disseminator.

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