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ANTT Promotes Auctions With Mining Company in Bahia for Acquisition of Section of Fiol, and Believes This Project Can Improve Bahia’s Economy
In one of the auctions organized by the ANTT this week, called Infra Week, a section of the West-East Integration Railway – Fiol was auctioned, and the company Bahia Mineração won without a bid premium last Thursday (8). The winner of the auction promoted by ANTT, which will improve Bahia’s economy, was Bahia Mineração, with a unique proposal of R$ 32.7 million.
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The project, which will be managed by Bahia Mineração for 35 years, is located in an important corridor for iron ore transportation from southwestern Bahia, linked to the Port of Ilhéus, and will enable the transport of grains from western Bahia to the terminal.
Investments in the Fiol Railway of Bahia
Bahia Mineração’s investments for the Bahia economy are about R$ 3.3 billion during the concession period. Of this, R$ 1.6 billion will be used for completing the work on the section, which is currently 80% executed. In addition, the sub-concession of Fiol will allow for approximately 55,000 new jobs as direct, indirect, and income-effect positions throughout the concession.
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The Secretary of Infrastructure, Tarcísio Gomes de Freitas, states that the R$ 3 billion in investments is a great gratification. He further emphasized that one of the ministry’s goals is to rebalance the transportation matrices in the country.
Tarcísio considers it emblematic to auction railways through ANTT and thanks Bahia Mineração for believing in Brazil for 16 years and now believing in the Bahia economy.
The concession of the railway by Bahia Mineração differs from privatization in that it involves a temporary transfer of control of a certain asset to the private sector. After the defined period ends, agreements may or may not be renewed by Bahia Mineração.
About the Section of Fiol Acquired by Bahia Mineração
This section is 537 kilometers long between the cities of Ilhéus and Caetité and, according to ANTT, it constitutes an important corridor for the transportation of iron ore from southwestern Bahia. The section will enable the transport of grains from western Bahia to the port, following the future concession of Section II, bringing improvements to the Bahia economy in this regard.
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