The Government plans to auction two railroads for the second half of this year, with works that could generate R$ 25 billion in investments
The government plans to auction the following railroads in the second half of this year: Ferrogrão and Fiol. The first aims to improve the flow of agricultural production from the Center-West to the Arco Norte region of Brazil; the second will transport iron and grain produced in Bahia. Forecasts indicate that these projects will generate around 25 billion reais in investments in the works, and the federal government will raise at least 50,7 million reais with these auctions.
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West-East Railway:
With approximately 1527 km in length, the Ferrovia de Integração Oeste Leste-FIOL will connect the future port of Ilhéus (on the coast of Bahia) to Figueirópolis (in Tocantins), at which point it will connect with the Ferrovia Norte Sul. The railroad works are almost being completed by Valetc.
The auction is scheduled to be held at B3 of the São Paulo Stock Exchange on April 8th. Interested companies must submit proposals by April 5. In addition to the right to manage the railways, the winner must also complete the rest of the works.
According to information from the Ministry of Infrastructure, the first section of the Fiol is very important for the disposal of iron ore produced in the region of Caetité (BA) and for the production of grains and ore in western Bahia. The transport of ore and grains will be done via Porto Sul, a port complex to be built near the city of Ilhéus (BA).
Ferrograin:
The government plans to grant the Ferrogrão concession, which is a “greenfield” project, that is, it is on paper and needs to be built from scratch.
The length of the railroad would go from Sinop (MT) to Mirituba (PA), which would be 933 kilometers long. According to the Investment Cooperation Program (PPI), which administers government concessions and privatization projects, the completed Ferrogrão will become a new export route for soy, corn and soy bran produced in central and western Brazil.
According to government estimates, the company winning the auction will have to make an investment of R$ 21,5 billion in the construction of the railroad. The maintenance cost during the contract period is estimated at BRL 63,7 billion
