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Possible Paralysis of Sections of the Centro Atlântica Railway (FCA) Puts the Baiana Economy at Risk. The Industry and Local Jobs May Suffer Severe Consequences If the Sections Are Discontinued, Affecting the Competitiveness of the State.
Bahia is on the brink of a logistical collapse, and the situation is alarming.
With the possible discontinuation of sections of the Railway Centro Atlântica (FCA), local industries and the Baiana economy may suffer severe consequences.
However, the true impact of this decision is still being debated.
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The renewal of FCA’s concession by VLI, which is being discussed in public hearings between September 30 and October 4, 2024, brings uncertainties that worry the entire productive chain of the state.
Bahia May Lose Strategic Railway Connection
According to VLI’s proposal, the company responsible for managing the Centro Atlântica Railway, sections that connect Bahia to states like Minas Gerais and Sergipe may be discontinued.
The Federation of Industries of the State of Bahia (FIEB) has expressed concern, highlighting that the interruption of these sections may negatively impact logistics and industrial production in the region.
Critical Sections Threatened
According to VLI, out of the 7,220 km of railway network under concession, 2,132 km may be returned to the government, of which 291 km belong to Bahia.
The section between Bonfim and Petrolina, in addition to Alagoinhas to Propriá, is among the most threatened.
This alarming situation jeopardizes the flow of essential products, such as those from the mining sector, compromising Bahia’s competitiveness on the national stage.
Serious Economic and Logistical Impacts for Bahia
The president of FIEB, Carlos Henrique Passos, warned of the risk of incalculable losses for the Baiana economy.
He emphasized that “what is at stake is the interconnection of Bahia by railway with other important centers” and that the discontinuation of strategic sections may weaken the state’s capacity to transport its production.
This decision also threatens the future operation of the West-East Integration Railway (FIOL), which is still in the planning phase.
According to Passos, “the interruption of FCA’s operation in Bahia paves the way for the loss of cargo from the FIOL Barreiras/Mara Rosa section”, jeopardizing the logistical development of the region.
The Need for Public Investment
FIEB argues that the renewal of the concession must ensure the maintenance of operations in the Baiana section until the government defines a new operational model.
This involves making public investments to improve railway conditions, especially since the current scenario makes it difficult to attract private investors.
According to FIEB, “it will not be possible to attract a private investor to operate based on the current conditions”.
The proposed solution includes the use of Capex resources (capital expenditures), as proposed by VLI, to ensure improvements and operational viability.
Proposals to Avoid Logistical Collapse
To avoid a logistical collapse that affects the economy and industry of Bahia, FIEB suggests urgent measures, such as ensuring that the section between Corinto (MG) and Campo Formoso (BA) continues to operate until a new operator is defined.
Additionally, the federation advocates for allocating resources for the modernization of this section, increasing its speed and efficiency, and ensuring the functionality of FIOL sections, ensuring that cargo continues to reach the ports of Baía de Todos os Santos.
These proposals aim to preserve the competitiveness of the state in the logistics sector and ensure that railway operations continue to be a fundamental pillar of the Baiana economy.
What Will Be the Logistical Future of Bahia?
What will happen if the railway sections are indeed paralyzed? Bahia runs the risk of becoming logistically isolated, with direct impacts on the economy, industry, and jobs.
Are the government and authorities prepared to deal with the consequences of this possible paralysis?
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