With New Railway Construction Projects, Investments from the Pro Trilhos Program Exceed R$ 100 Billion

The Federal Government Received 23 Requests From 12 Private Entities Interested in the Construction and Operation of 7,501.79 Km of Railway

Last Monday (10/25), the Federal Government’s program called “Pro Trilhos,” which encourages the expansion of the national railway network through the granting of authorization, reached a total of R$ 100.03 billion in planned investments. Two new requests were filed with the Ministry of Infrastructure (Minfra), bringing the total to 23 projects for the construction of new railways. Also Read This News: Private Investment for Railway Construction Exceeds Expectations and Already Reaches R$ 80 Billion

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Projects for the Construction of New Railways

The 23 projects for the construction of new railway segments were formulated by 12 private investors interested in constructing and operating railway segments, totaling 7,501.79 kilometers of new tracks, crossing 14 Brazilian states. The requests for new projects address historical demands of railway transport in relation to the provision of new routes and the inclusion of more operators in the railroad offering for the transportation of mineral, agricultural, and containerized cargo throughout the country.

Active in the port infrastructure sector, Petrocity submitted the third request to the Federal Government to develop a railway. Now, to operate a segment between Campos Verdes (GO) and Unaí (MG), with an extension of 530 kilometers and an expected investment of R$ 5.3 billion, as the company also filed requests from São Mateus (ES) to Ipatinga (MG), with 410 kilometers and R$ 4.1 billion in investments, and from Brasília (DF) to Barra de São Francisco (ES), with an extension of 1,108 kilometers and R$ 14.22 billion in planned investments.

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Minerva Participações e Investimentos S.A. proposed a railway with an extension of 571.3 kilometers, connecting the municipalities of Açailândia (MA) to Barcarena (PA). This is the company’s first request, aimed at creating a new alternative for the transportation of goods from the North-South Railway (FNS). The project is expected to require an investment of R$ 5.71 billion.

Recently, the Ministry of Infrastructure Announced That Mining Companies Submitted Requests for the Construction of New Railroads

The Ministry of Infrastructure received two new requests from mining companies for the construction and operation of railways. According to the ministry, Morro do Pilar Minerais proposed a railway with an extension of 100 kilometers and R$ 1 billion in investment, to transport iron ore (bulk solids), connecting Colatina and Linhares (ES). Brazil Iron Mineração plans 120 kilometers in Bahia, between a railway terminal in Abaíra and Brumado.

With the new requests filed with the ministry, the total requests for the creation of rail lines in the country under the new railway authorization model launched in September now amount to 21, representing almost R$ 84 billion in investments and 5,600 kilometers of new tracks. The requests are under review by the National Land Transport Secretariat team. Almost 15 of them are currently being evaluated by ANTT (National Land Transport Agency).

Until the issuance of Provisional Measure 1,065, on August 30, 2021 (“MP 1,065/21”), public railways could only be constructed or operated by private companies under a concession or permission regime, always through bidding. The Union is the owner of the services (art. 21, XII, “d”, of CR/88), which, as a general rule, has the authority to grant the service of railway transport, according to the provisions of art. 20, of the national transportation system law (law 12,379, of January 6, 2011). For this reason, the Ministry of Infrastructure and the National Land Transport Agency (ANTT) will be responsible for implementing the changes brought about by the new railway regulatory framework.