Deficit In Railway Infrastructure and Logistics Issues Threaten Growth of Bahia's Mining Production, Warns CBPM

Deficit In Railway Infrastructure and Logistics Issues Threaten Growth of Bahia’s Mining Production, Warns CBPM

Written by Ruth Rodrigues

Published on 17/05/2022 at 13:23

Foto: Sunshine Seeds/iStock

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Despite Significant Growth in Recent Years, CBPM Warns About the Mining Sector in Bahia, Which Is Now Facing an Even More Concerning Issue: The Lack of Railways Necessary for Freight Transportation and Logistics Problems

Recently, the Bahian Company for Mineral Research (CBPM) highlighted the main problems affecting mining in Bahia. As of this Monday (05/16), the agency demonstrated that the main challenges threatening the sector’s growth are the lack of railways and inadequate logistics for the proper transportation of production, which has continued to expand over the past few years.

Growth of Bahia’s Mining Sector Will Be Affected by Lack of Adequate Logistics Infrastructure for Production Transportation, Facing a Railway Deficit

The state of Bahia has been one of the largest references for growth in mining in recent years and is currently among the three largest collectors of Financial Compensation for the Exploration of Mineral Resources (CFEM). However, this growth is being threatened by an even more urgent issue: the lack of railways and adequate logistics for transporting all this production, which is expected to continue to grow throughout 2022.

The main issue pointed out by researchers in the field, such as Professor André Luis Melo from the Department of Transportation Engineering and Geodesy (DETG), is that the road modal is still heavily overestimated within the state. However, throughout the production transport process in mining operations, this mode of transport becomes unviable, and the better alternative is the railways of the state. Yet, what is currently observed is a significant deterioration of the railway system.

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CBPM Warns About the Need for Investment in Bahian Railways to Ensure Adequate Infrastructure for the Transportation of Production in the Mineral Sector

The territorial extension of the state of Bahia requires a diversification of transportation modes, according to CBPM. This is because, for a state of this size, relying solely on highways is financially unviable. With the necessary investments in railways, Bahia can have the adequate infrastructure to transport mining production more efficiently. Thus, the sector’s growth in the state will not only be financial but also provide logistical and developmental compensation for the region itself.

Therefore, the president of CBPM, Antônio Carlos Tramm, states that “Trains have disappeared; they neither transport cargo nor passengers. The network has deteriorated. There are 10 baian ports/terminals without rail access. Meanwhile, FCA/VLI is seeking to renew the concession contract for another 30 years. What is expected is that the National Land Transportation Agency (ANTT) does not grant the renewal until the concessionaire presents the necessary explanations about what has been done for over two decades and what will be carried out in the medium and long term in the future.”

And what CBPM hopes for in the coming months with the arrival of new enterprises in the state, like the gold mine of Equinox Gold, is that the state government can open discussions regarding the logistics of transporting this production.

Deficit In Railway Infrastructure and Logistics Issues Threaten Growth of Bahia’s Mining Production, Warns CBPM

Despite Significant Growth in Recent Years, CBPM Warns About the Mining Sector in Bahia, Which Is Now Facing an Even More Concerning Issue: The Lack of Railways Necessary for Freight Transportation and Logistics Problems

Growth of Bahia’s Mining Sector Will Be Affected by Lack of Adequate Logistics Infrastructure for Production Transportation, Facing a Railway Deficit

CBPM Warns About the Need for Investment in Bahian Railways to Ensure Adequate Infrastructure for the Transportation of Production in the Mineral Sector

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Deficit In Railway Infrastructure and Logistics Issues Threaten Growth of Bahia’s Mining Production, Warns CBPM

Despite Significant Growth in Recent Years, CBPM Warns About the Mining Sector in Bahia, Which Is Now Facing an Even More Concerning Issue: The Lack of Railways Necessary for Freight Transportation and Logistics Problems

Growth of Bahia’s Mining Sector Will Be Affected by Lack of Adequate Logistics Infrastructure for Production Transportation, Facing a Railway Deficit

CBPM Warns About the Need for Investment in Bahian Railways to Ensure Adequate Infrastructure for the Transportation of Production in the Mineral Sector

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In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

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