Federal Government Seeks Resumption of Train Rail Production

Written by Paulo Nogueira

Published on 05/09/2020 at 17:59

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Brazil Has Not Produced Train Tracks Since the 80’s and To Depend Less on These Products From China, the Government Is Studying the Metalworking Sector’s Capacity to Meet National Railway Projects

The Federal Government of Brazil has created a task force to assess the feasibility of restarting national train track production, as railway projects in the country are undergoing a revival. It is worth noting that the government will also offer more than 500 areas for mineral exploration, according to an announcement that was released by the Ministry of Mines and Energy a few days ago.

The Ministry of Mines and Energy has created a permanent technical committee for the development of mining transformation, whose responsibilities include “studies to add value to high-quality metallurgical products such as the production of tracks for the expansion of national railway infrastructure,” according to the official announcement in the Diario Oficial.

Brazil has not produced train tracks internally since the 1980s and now imports most of these materials from China.

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Other Projects to Be Initiated in the Coming Months in the Railway Sector

With a series of railway projects planned to be initiated in the coming quarters, the Federal Government is seeking to reduce dependence on imported products and boost the domestic industry.

The government of President Jair Bolsonaro is working on launching three major railway projects that will require a combined investment of 14.3 billion reais (US $2.7 billion): the West-East Integration Railway ( FIOL ), Ferrogrão and the Midwest Integration Railway ( FICO )

Recently, the government finalized the early renewal of railway concession contracts with private companies, which also opens space for greater investments in the segment and makes national track production more viable.

Federal Government Seeks Resumption of Train Rail Production

Brazil Has Not Produced Train Tracks Since the 80’s and To Depend Less on These Products From China, the Government Is Studying the Metalworking Sector’s Capacity to Meet National Railway Projects

Other Projects to Be Initiated in the Coming Months in the Railway Sector

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Federal Government Seeks Resumption of Train Rail Production

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