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Abandoned Railway Can Be Partially Used in the Project with Over R$ 23 Billion in Investments from Vale and Others.
The forgotten tracks of the Centro-Atlântica Railway (FCA), which have deteriorated for years due to lack of use, may be about to receive an investment that would impress any analyst.
With over R$ 29 billion planned for the concession renewal, industry giants like Vale and the Brookfield fund are poised to transform this vital infrastructure for Brazil.
The renewal project includes the modernization of over 5,725 km of tracks, covering strategic states for the economy, such as Bahia, Minas Gerais, Espírito Santo, and São Paulo.
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However, a crucial question remains under debate: some abandoned sections, especially in Espírito Santo, still have the potential to resurface with a new purpose.
One of these is the stretch between Itaboraí (RJ) and Vitória (ES), which may be partially integrated into the EF-118 project, a railway that promises to connect Vitória to Rio de Janeiro.
The Renewal and Challenges of the Project
With the renewal of the FCA contract scheduled to happen by 2026, public hearings are being organized to discuss the details of this colossal project.
According to the National Agency for Land Transport (ANTT), although there is a proposal to return some sections, such as the railway that passes through Espírito Santo, the company Infra S.A. is evaluating the potential utilization of part of this infrastructure in the EF-118 project.
If implemented, this railway would not only revitalize strategic regions but also boost the connection between Vitória and Rio de Janeiro.
According to preliminary studies, the FCA currently moves about 16.7 million tons of cargo on railways and over 16 million at the ports of Espírito Santo.
Even with sections being returned, the early renewal anticipates a massive investment of R$ 10 billion just in the East Corridor, aiming to increase cargo transport capacity.
The modernization of the tracks, acquisition of new cars, and resolution of urban conflicts are some of the strengths of the renewal.
The Strategic Importance of the Railway
The Centro-Atlântica Railway is not only the largest railway network in Brazil in terms of length, with impressive 7,856 km of tracks, but also proves essential for the logistics of exporting ore and agricultural products.
Vale, which holds 29.6% of VLI, the company that operates the FCA, is one of the major beneficiaries of these investments.
The Canadian fund Brookfield, which controls 36.5% of VLI, is also deeply involved in the project alongside the federal government.
Espírito Santo, in particular, is a central piece in the railway route that enables the export of cargo from the interior of Minas Gerais to the port of Vitória. According to data from VLI, the expectation is that, in the coming years, cargo movement on this route will increase by 60%.
Compensations and Impacts on the Local Economy
With the plan to return sections of the railway in Espírito Santo, compensation of R$ 3.6 billion has been planned by VLI to the federal government for returned assets.
However, even without the Itaboraí-Vitória stretch, the FCA will continue to be a vital force for cargo transport in the state.
The investment in modernization will not only boost transport capacity but also improve urban mobility in cities affected by the flow of trains.
Despite the return of some segments, forecasts for cargo volume growth remain positive.
The areas benefiting from the East Corridor include strategic sectors such as agribusiness and steelmaking.
Tariff competitiveness and logistical efficiency, especially when comparing the routes of Vitória and Santos, are determining factors for companies when choosing which port to utilize.
Conclusion: The Importance of the Railway for Brazil’s Logistical Future
Although the renewal of the Centro-Atlântica Railway is cause for celebration, especially with the R$ 29 billion in investments, the coming years demand careful planning to balance the return of sections and the modernization of the railway network.
The possibility of integrating part of the returned infrastructure into the EF-118 project, connecting Vitória to Rio de Janeiro, further reinforces the strategic relevance of this mode of transport for the country.
However, the question that remains is: with so many modernization and competitiveness challenges, will this investment in the railway be enough to bring back the glory days of this mode in Brazil?
Estou sempre renovando minhas esperanças.
Ferrovia é tudo!
O transporte ferroviário, sofre uma resistência muito grande , por parte dos empresários do setor rodoviário e seus lobbys políticos.
Concordo, mas infelizmente esses *********darão um jeito de criar um imposto ou arrecadação para também comer esse filé!