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Federal Government Accelerates Investments in the Southeast Railway Ring and Promises Final Model by August
The market’s interest is real, and the government has already realized that if it wants to see this train moving, it will have to make concessions, change the route, offer guarantees, and even include more sections in the deal. Adjustments to the project are taking place at full steam, with the promise that the final model will be completed by August, as confirmed by George Santoro, executive secretary of the Ministry of Transport.
Investment in the Project Gains Support to Mitigate Risks and Attract Investors
Among the adjustments on the table, the most sensitive is a change in the railway’s route, designed to reduce environmental impacts, one of the biggest obstacles for infrastructure projects today. In addition, the federal government wants to include a specific insurance policy that guarantees the promised public investments in case any unforeseen events arise along the way.
Another relevant point: the inclusion of an 80 km branch in Espírito Santo, which was initially the responsibility of Vale, but may now officially enter the scope of the concession. This is because, as Santoro explained, leaving this part in the hands of the mining company does not sit well with investors. After all, the railway could end up directly competing with Vale’s own interests.
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“This is undoubtedly the most sensitive issue of the project. It has come up in all conversations with the market,” the secretary emphasized.
Rail Auction is the Only One with Real Chance Until 2026
The EF-118 railway auction has become a priority. In practice, it is the only project in the sector with real chances of being realized before the end of the current government. Other promises, such as Ferrogrão and the Fico-Fiol corridor, remain on hold, surrounded by uncertainties and legal questions.
The initial contract provides for 170 km, linking Anchieta (ES) to the Port of Açu (RJ), a terminal that is becoming a logistics hub in the region. But this is just the beginning. The project already considers a future expansion: the so-called Southern Section, with an additional 325 km, reaching Nova Iguaçu (RJ), where it will connect with the MRS Logística network.
However, this second section is conditioned on the emergence of demand. According to Santoro, if the Petrochemical Complex of Rio de Janeiro (Comperj) advances with phases 3 and 4, this would trigger the obligation for the concessionaire to carry out this work. The initial investment is estimated at R$ 4.6 billion, with a public counterpart of R$ 3.3 billion.
Attentive Market and Competition Begins to Take Shape
According to the Ministry of Transport itself, 24 companies have already expressed some type of interest. The profile is quite varied: ranging from railway and port operators to construction companies and foreign groups, especially investors from China and Spain.
Among the names circulating behind the scenes are:
- Porto do Açu, from Prumo Logística, which has already obtained authorization to build a 43 km branch, valued at R$ 650 million, directly connecting the terminal to the railway;
- Equipav, which is exploring a possible partnership with Chinese investors to strongly enter the competition;
- MRS Logística, which, despite the natural connection to the project, has officially declared that it will not participate in the auction;
- VLI Logística, which shows interest but is currently focused on renewing the Centro-Atlântica Railway (FCA);
Vale, which maintains a cautious position, is evaluating the strategic impacts as the EF-118 could rival its operations on the Vitória-Minas Railway (EFVM).
According to David Goldberg, senior director of A&M Infra, the trend is that large construction companies will be more interested, especially because public resources cover a significant part of the works. “The operational flow may come much more from the right of way of other railways than from the concessionaire’s own operation,” he explained.
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