Deficit in the number of railroads and problems in transport logistics threaten growth in mining production in Bahia, warns CBPM

Despite the expressive growth in recent years, CBPM warns the mining sector in the state of Bahia, which now suffers from an even more worrying problem, the lack of railroads necessary for the flow of cargo and problems in logistics

Recently, the Companhia Bahia de Pesquisa Mineral (CBPM) highlighted the main problems that affect mining in Bahia. Until this Monday, (16/05), the agency demonstrated that the main problems currently threatening the growth of the sector are the lack of railroads and the lack of logistics for an adequate flow of production, which continues to expand over the years. last years.

The growth of mining in Bahia will be affected by the lack of adequate logistics infrastructure to transport production, with a deficit of railroads 

The state of Bahia has been one of the biggest references in mining growth in recent years and is currently among the top three collectors of Financial Compensation for the Exploitation of Mineral Resources (CFEM). However, this growth is being threatened by an even more urgent issue, the lack of railroads and adequate logistics to transport all this production, which will only tend to grow throughout 2022. 

The main issue pointed out by researchers in the area, such as Professor André Luis Melo, from the Department of Transport Engineering and Geodesy (DETG), is that the road modal it is still very overrated within the state. However, throughout the production flow process in mining operations, this transport becomes unfeasible and the best alternative is the state railroads. But what is currently seen in the state is a strong scrapping of the railway modal. 

One of the main examples pointed out by CBPM is VLI/Ferrovia Centro-Atlântica S/A, which for almost 25 years has left several stretches in precarious conditions. In addition, the Senhor do Bonfim-Juazeiro/Petrolina, Esplanada-Propriá, Mapele-Calçada, and partial stretches at the Port of Aratu were also deactivated, which corresponds to the loss of more than 620 km. As a result, the logistics for transporting mining production becomes increasingly complicated and bureaucratic, since there is no quality infrastructure for transporting these loads. 

CBPM warns of the need for investments in Bahian railways to ensure an adequate structure for the flow of production in the mineral sector

The territorial extension of the state of Bahia requires a diversification of transport modes, according to CBPM. This happens because, for a state with these dimensions, depending only on highways is financially unfeasible. And, with the necessary investments in railroads, Bahia can have the adequate infrastructure for the flow of mining production to be carried out more efficiently. Thus, the sector's growth in the state will not only be financial, but there will also be logistical and development compensation for the region itself. 

For this reason, the president of CBPM, Antônio Carlos Tramm, states that “The trains are gone, they do not carry cargo or passengers. There was scraping of the mesh. There are 10 ports/terminals in Bahia without rail access. Meanwhile, FCA/VLI is seeking renewal of the concession contract for another 30 years. What is expected is that the National Land Transport Agency (ANTT) will not grant the renewal until the concessionaire presents the proper explanations about what has been done for more than two decades and what will be done in the medium and long term in the future” .

And, what CBPM expects for the next few months with the arrival of new ventures in the state, such as the Equinox Gold mine, is that the state government can open discussions around the logistics of transporting this production.