State of Minas Gerais to Receive Billion-Dollar Investment for Railway Expansion

Written by Roberta Souza

Published on 17/09/2021 at 12:49

Ferrovias/ Fonte: Inove Capacitação

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The New Legal Framework for Railways Will Unlock New Projects and Billion-Dollar Investments for Minas Gerais. The Measure Reduces Bureaucracy for the Construction of New Segments

The Legal Framework for Railways will result in increased private investments in the railway sector. The measure reduces bureaucracy for building new railways and innovates in the utilization of idle segments and the provision of railway transport services. Minas Gerais may receive significant investments. Three projects planned for the state account for nearly R$ 13 billion for the construction of new production drainage segments. Read also: Federal Government Launches Program to Boost Railway Construction

The Expansion of Railways in the State of Minas Gerais

According to the Diário do Comércio website, the state of Minas Gerais has 19 segments suitable for exploration through authorizations that have already been mapped in different regions of the State, by the Strategic Railway Plan (PEF). The estimated investments in projects of this nature total R$ 26.7 billion in railway construction works, rolling stock, and fixed installations, divided into freight and passenger transport. Additionally, the generation of 373,000 jobs is projected.

Deputy João Leite points out that the federal government has already received expressions of interest for the construction of new segments in Minas Gerais from Valor da Logística Integrada (VLI) and Petrocity. The first one, from Uberlândia to Chaveslândia, in the Triângulo region, will have a length of 235 kilometers and an estimated investment of R$ 2.7 billion. The second, which will link Ipatinga to São Mateus in Espírito Santo, will have a length of 420 kilometers and an investment of R$ 5 billion.

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Previously, the Governor of Minas Gerais Had Announced Investments in the Sector

The Governor of Minas Gerais, Romeu Zema (Novo), signed a decree to transfer the administration of 19 railways in the state to the private sector. The expectation is to attract around R$ 26.7 billion to the railway sector. According to the Government, the operation of shorter lines, known as “shortlines,” could generate more than 370,000 jobs.

The intent, according to the Government, is to enable the first railway segment in the country managed under the authorization model, whereby a private company operates at its own risk. With this movement, the state of Minas Gerais is staying ahead of the National Congress, which has yet to approve the bill allowing this type of regime on federal railways. The Legislative Assembly of the State of Minas Gerais has already approved the model, with only the regulation pending, dispatched this Tuesday by Governor Romeu Zema. Minas has mapped 19 projects that can potentially be operated under the authorization model, with estimated investments of R$ 26.7 billion.

Check Out Also: R$ 5 Billion Railway Will Be Built Between MG and ES. 3,500 Professionals Will Be Hired for the Works

The construction of the Minas-Espírito Santo Railway (EFMES) is closer to becoming a reality. The railway is planned to connect the Port Center of São Mateus in Espírito Santo to Ipatinga in Minas Gerais, with construction expected to begin in 2023. A total of 3,500 professionals will be hired to work on the construction of the network, approximately two thousand vacancies in the state of Espírito Santo, for various positions.

Petrocity Portos is seeking to build and operate a railway segment between São Mateus (ES) and Ipatinga, with an extension of 420 kilometers. The railway project aims to connect with the future privately used terminal to be installed by Petrocity, allowing the transportation of grains and general cargo.

The projected investment for this new railway is around R$ 5 billion and is expected to include resources from foreign investors. The director of Petrocity, José Roberto Barbosa, who attended the ceremony in Brasília, explained that the intention is to connect the Vale do Aço to the Espirito Santo municipality, where the project for the installation of the São Mateus Port Center (CPMS) by the same company is planned. The project awaits the release of the environmental license from the State Institute of the Environment of Espírito Santo (Iema) to proceed.

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State of Minas Gerais to Receive Billion-Dollar Investment for Railway Expansion

The New Legal Framework for Railways Will Unlock New Projects and Billion-Dollar Investments for Minas Gerais. The Measure Reduces Bureaucracy for the Construction of New Segments

The Expansion of Railways in the State of Minas Gerais

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Previously, the Governor of Minas Gerais Had Announced Investments in the Sector

Check Out Also: R$ 5 Billion Railway Will Be Built Between MG and ES. 3,500 Professionals Will Be Hired for the Works

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State of Minas Gerais to Receive Billion-Dollar Investment for Railway Expansion

The New Legal Framework for Railways Will Unlock New Projects and Billion-Dollar Investments for Minas Gerais. The Measure Reduces Bureaucracy for the Construction of New Segments

The Expansion of Railways in the State of Minas Gerais

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Previously, the Governor of Minas Gerais Had Announced Investments in the Sector

Check Out Also: R$ 5 Billion Railway Will Be Built Between MG and ES. 3,500 Professionals Will Be Hired for the Works

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