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The Government Plans to Divide the West Network into Two Projects, Renew Sections of the Transnordestina Railway, and Resume Works in Pernambuco.
The Federal Government is studying the division of the West Railway Network into two distinct projects. One of these projects aims to serve the region of Mato Grosso do Sul, connecting it to the Paraguay River waterway, while the other aims to connect the state to the railway network of São Paulo. In addition, the government is prioritizing the early renewal of two railway sections. One of them is part of the old network of the Transnordestina Railway, while the other is from the Tereza Cristina Railway (FTC). The renewal of these sections is seen as crucial to improving cargo transport in the Northeast and other regions of the country.
The Government’s Division of the West Network
This division was suggested during public hearings held, where the difficulties and disagreements regarding the initial project were discussed.
The Rumo concessionaire, which had expressed interest in returning the section, is now considering a re-negotiation to operate the part that connects to the waterway and return the other part.
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India is paving 1,350 kilometers of road with 8 lanes to connect its two largest cities — the drive between Delhi and Mumbai will be reduced from 24 hours to 12, and 929 kilometers are already completed.
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If this negotiation is finalized, it will be mediated by the Federal Court of Accounts (TCU), through the External Control Secretariat (Secex Consenso).
The division of the West Network is one of the government’s strategies to better meet regional needs and optimize the use of the railway.
Companies operating in the region, such as Eldorado and Suzano, which have pulp factories, have shown interest in the returned sections.
They have already requested permission to build private railways in the area. The expectation is that these companies will operate the returned sections under the new concession model.
Early Renewal of Sections of the Transnordestina
The concessionaire responsible for the old Transnordestina network, from the CSN group, has expressed interest in maintaining the operation of a section that connects the port of Itaqui, in Maranhão, to Ceará.
This section is strategic, connecting with the New Transnordestina, which is being built by the company in Ceará, towards Piauí.
However, for this renewal to occur, a reconciliation process is necessary regarding what the company owes to the government and what it has to receive for the investments made.
The Secex Consenso of the TCU has already established a standard for handling these processes of returning railway sections.
However, there are still challenges to be faced, such as sections destroyed by heavy rains and the need to share tracks with the New Transnordestina.
Government Investments in the New Transnordestina in Pernambuco
Another highlight in the government initiatives is the resumption of investments in the New Transnordestina, specifically in the section that connects Petrolina to the port of Suape, in Pernambuco.
This section, which was returned by the concessionaire, is set to have its works continued with public resources.
The government’s goal is to make the section viable for future concession.
According to Marcus Cavalcanti, special secretary of the Investment Partnerships Program (PPI), continuing these works is a strategic decision made by President Lula.
The priority is to complete this project, which has been underway for about 30 years.
However, there are still challenges to be overcome, such as the expropriations needed in the areas close to the port of Suape.
Cavalcanti emphasized the government’s commitment to addressing these obstacles and completing the works, bringing significant improvements to the railway infrastructure in the region.
Prospects for the Tereza Cristina Railway and the South Network
In the case of the Tereza Cristina Railway (FTC), which transports coal in Santa Catarina, early renewal is also on the table.
Federal legislation ensures the continuous operation of this railway, which may facilitate the renewal process.
The government considers this renewal essential for maintaining the flow of cargo in the region, ensuring the competitiveness of the sector.
On the other hand, the South Network, operated by Rumo, faces significant challenges.
Negotiations between the concessionaire and local and federal governments have been marked by disagreements, particularly regarding the projects proposed by the company and the demands of the local community.
Recent damage to the railway’s structure, caused by heavy rains in the region, has made the project even more complex.
In light of these challenges, the trend is for the South Network to be divided into smaller, more economically viable sections for re-tendering.
Infra S.A., the state company responsible for structuring projects for the Ministry of Transport, is already conducting studies for the re-bidding of all railway networks, including those undergoing renewal.
These initiatives demonstrate the government’s effort to revitalize and modernize the Brazilian railway system, seeking solutions that meet both regional needs and economic demands of the country.
The division of the West Network, the renewal of the Transnordestina and the FTC, and new investments in the New Transnordestina are important steps to ensure the efficiency of cargo transport in Brazil, strengthening logistical infrastructure and promoting economic development.
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