Assignments by the Federal Government for the Construction of Railways in Brazil already have 78 requests from interested companies and a forecast for the creation of more than 2 million jobs

The railway sector in Brazil will receive billionaire investment from large private companies

Through his social networks, the President of the Republic, Jair Bolsonaro, made a statement this Saturday (25) pointing to new negotiations in the railway sector in Brazil. According to him, the Federal Government is seeking to restore railway morale in order to expand the means of transport available in the country. So far, the government already had 78 requests for the construction and operation of railways from the private sector, which would generate more than 2 million new jobs direct and indirect.

The total investment from the private sector would add up to R$ 237 billion to give new life to the railroads throughout the national territory. The Federal Government's concessions to the private sector may encourage and rebuild a cost-effective means of transport, especially at a time when fuel prices are on the rise. Learn more in today's article.

Learn how Railway concessions by the National Land Transport Agency (ANTT) work in the video below.

Railroads have existed in Brazil for 70 years and are precarious due to abandonment

A rail network in Brazil it has existed for 70 years and is in a precarious situation, being little used for production disposal, which would be the purpose. Trains were widely used to transport coffee in colonial times, generated several jobs at the time and reached a coverage of 31 thousand kilometers in 1957, when it was the best result. However, after that, the railroads had no more investment and were abandoned over time.

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“The outlook is bad. What has been done so far cannot be considered progress. Passenger transport in Brazil has not been resolved. We, in civil society, are concerned about the Regulatory Framework for Railways and authorizations for hotlines (railways integrated with other modes). When making the concessions, there was no requirement to pass passenger railroads. It can't just be freight railways. Today railroads are used only to export soybeans, corn, sugar and iron”

José Manoel Gonçalves, president of Ferrofrente in a statement to Correio Braziliense (2021)

According to the Ministry of Infrastructure, in 2021, railroads make up, together, only 15% of the share of means of transport in use in Brazil, which is very little. Brazil is a country with continental dimensions and needs to distribute its production over more than 8 square kilometers, which is a great challenge by means of highways and maritime transport alone.

The strengthening of the railway network by the Federal Government and the private sector can bring economic development to different regions of Brazil and reduce the costs of transporting the production of goods and inputs

At a time when fuels are at alarming prices due to inflation, the search for alternative means of transport can be a great way out. The railway network would be one of these alternatives and would reduce the costs of transporting the production of goods and inputs. Furthermore, it would lead to economic development and millions of jobs, at a time when many people need job opportunities.

This means of transport reduces environmental impacts, speeds up the transport process due to less use of roads and even connects different regions of Brazil. According to a survey by Ferrofrente, an entity promoting the sector, vehicles powered by gasoline, diesel and ethanol can be up to four times more polluting than trains.

the challenge of connect the country through railroads it is quite a challenge, considering the diversity of existing biomes and large areas of forest in environmental preservation and hydrographic basins. However, other alternatives and paths can be thought of, all it takes is investment, which will come from the private sector, it seems, and will generate millions of new jobs.