Railway Concessions Could Generate R$ 25 Billion in Works

Written by Roberta Souza

Published on 11/02/2021 at 16:22

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The Government Plans To Auction Two Railways For The Second Semester Of This Year, With Works That Can Generate R$ 25 Billion In Investments

The government plans to auction the following railways in the second semester of this year: the Ferrogrão and the Fiol. The former aims to improve the flow of agricultural production from the Midwest to the Northern Arc of Brazil; the latter will transport iron and grains produced in Bahia. Projections indicate that these projects will generate around R$ 25 billion in investments for the works, with the federal government collecting at least R$ 50.7 million from these auctions.

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West-East Railway:

With approximately 1527 km in length, the West-East Integration Railway-FIOL will link the future port of Ilhéus (on the Bahia coast) to Figueirópolis (in Tocantins), where it will connect with the North-South Railway. The railway works are nearly completed by Valetc.

The auction is scheduled to take place at the B3 São Paulo Stock Exchange on April 8. Interested companies must submit proposals by April 5. In addition to the right to manage the railways, the winner must also complete the remaining works.

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Ferrogrão:

The government plans to grant the Ferrogrão, which is a “greenfield” project, meaning it is still on paper and needs to be built from scratch.

The railway’s route would extend from Sinop (MT) to Mirituba (PA), covering 933 kilometers. According to the Investment Partnership Program (PPI), which manages government concessions and privatization projects, the completed Ferrogrão will become a new export route for soybeans, corn, and soybean meal produced in central and western Brazil.

According to government estimates, the winning company of the auction will have to invest R$ 21.5 billion in the construction of the railway. The maintenance cost during the contract period is estimated at R$ 63.7 billion.

Railway Concessions Could Generate R$ 25 Billion in Works

The Government Plans To Auction Two Railways For The Second Semester Of This Year, With Works That Can Generate R$ 25 Billion In Investments

See Other News Of The Day:

West-East Railway:

Ferrogrão:

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Railway Concessions Could Generate R$ 25 Billion in Works

The Government Plans To Auction Two Railways For The Second Semester Of This Year, With Works That Can Generate R$ 25 Billion In Investments

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