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Minas Gerais Will Be The State That Will Receive The Most Investments With 6 Construction Projects And Operations Of New Railways
After the Ministry of Infrastructure (MInfra) received two more requests, the state of Minas Gerais has a total of R$ 43.04 billion in private investments for the creation and operation of new railways in the country through the authorization grant instrument. In total, six projects crossing municipalities in the state will add 3,169.5 kilometers of new tracks cutting through part of the mining territory. Read this news as well: Federal Government Launches Program To Boost Railway Construction
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Investments In Railway Construction In Minas Gerais
One of the most recent requests made to the federal government proposes a new rail connection between the municipalities of Campos Verdes, in Goiás, and Unaí, in the Northwest Region of Minas Gerais. This is the third project presented by Petrocity Portos, under the Legal Framework for Railways, which opened up the possibility for the private initiative to invest in railway transportation with federal authorization. The company now wants to implement a segment with 530 kilometers in length between Goiás and Minas: the forecast is that the investment required will be R$ 5.3 billion.
The two previous railway projects requested by the company also cross Minas Gerais soil. The largest is the Juscelino Kubitschek Railway (EFJK). With a length of 1,108 kilometers, it will connect Brasília to Barra de São Francisco, in Espírito Santo, passing through Goiás and crossing 34 locations in Minas Gerais. The investment was estimated at R$ 14.22 billion for the construction of the new tracks and for the maintenance, along the route, of six Units for Transshipment and Cargo Storage (UTACs).
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The Pro Trilhos Program
The 23 requests from the Pro Trilhos program were made by 12 private investors interested in constructing and operating railway segments – totaling 7,501.79 kilometers of new tracks, crossing 14 states of the country (including the state of Minas Gerais). The requests address historical demands of railway transportation regarding the provision of new routes and inclusion of more operators in the supply of railways for transporting mineral, agricultural, and containerized cargo throughout the country.
The Legal Framework for Railways, created by Provisional Measure 1.065/2021 and which establishes the regime of railway authorizations, is also advancing in the National Congress after approval by the Federal Senate of PLS 261/18. The text will now be analyzed by the Chamber of Deputies. If there are no changes, it will proceed to presidential sanction.
Also Check: Ministry of Infrastructure Announces That Mining Companies Submitted Requests For The Construction Of New Railways
The Ministry of Infrastructure received two new requests from mining companies for the construction and operation of railways. According to the ministry, Morro do Pilar Minerais proposed a railway with a length of 100 kilometers and R$ 1 billion in investment, to transport iron ore cargo (solid bulk), connecting Colatina and Linhares (ES). And Brazil Iron Mineração plans 120 kilometers in Bahia, between a railway terminal in Abaíra and Brumado.
With the new requests filed with the ministry, the requests for the creation of lines in the country under the new railway authorization model launched in September reach 21, or almost R$ 84 billion in investments and 5,600 kilometers of new tracks. The requests will be analyzed by the team of the National Department of Land Transportation. Almost 15 of them are under evaluation by ANTT (National Land Transportation Agency).
Until the issuance of Provisional Measure 1.065, on August 30, 2021 (“MP 1.065/21”), public railways could only be constructed or operated by private companies, under the regime of concession or permission, always through bidding. The Union is the holder of the services (art. 21, XII, “d”, of CR/88), which, as a general rule, is responsible for the granting of the railway transport service, pursuant to art. 20 of the national transportation system law (law 12.379, of January 6, 2011). For this reason, the Ministry of Infrastructure and the National Land Transportation Agency (ANTT) will be responsible for implementing the changes brought about by the new railway regulatory framework.
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