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Key Infrastructure Projects for Brazil’s Next President: Expanding Railways to Cut Transport Costs, Reduce Truck Traffic, Create Jobs, and Boost Industries Nationwide

Author profile image Fabio Lucas Carvalho
Written by Fabio Lucas Carvalho Published on 24/06/2026 at 20:26 Updated on 24/06/2026 at 20:27
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With about 28.8 thousand kilometers of granted network, Brazil still heavily depends on highways; according to engineer Fabrício Rossi, new railway corridors could reduce freight costs, increase competitiveness, attract investments, and boost productive chains in different regions of the country.

The expansion and modernization of railways are among the infrastructure works capable of transforming Brazilian logistics. With new corridors, integration between different networks, and better access to ports, the country could transport large volumes of goods with less dependence on trucks for long-distance trips.

Data from the National Land Transport Agency, the ANTT, shows that the railway concessions in operation total approximately 30.6 thousand kilometers.

The extension reveals the dimension of the Brazilian system, but also exposes the need to better integrate the tracks and expand their presence in producing regions still dependent on highways.

In addition to building new lines, the next government will face the challenge of recovering sections, eliminating bottlenecks, creating intermodal terminals, and connecting railways to ports, industries, and distribution centers.

These works could improve the flow of minerals, grains, fuels, steel products, and other bulk cargoes.

Brazil needs many infrastructure works.
Brazil needs many infrastructure works.

China surpassed 50 thousand kilometers of high speed

The railway growth in China shows how continuous policies can change a country’s infrastructure. In December 2025, the Chinese high-speed network surpassed 50 thousand kilometers in operation, according to information released by the state agency Xinhua.

The expansion occurred just 17 years after the opening of the intercity railway between Beijing and Tianjin, inaugurated in August 2008 and considered the starting point of the modern Chinese high-speed network.

The 30.6 thousand Brazilian kilometers mainly include railways intended for freight transport. Meanwhile, the more than 50 thousand Chinese kilometers are exclusively high-speed lines, primarily used for passenger travel.

Even representing different systems, the numbers demonstrate the effect of investments planned over decades. In addition to the high-speed network, China already had more than 160 thousand kilometers of railways in operation by the end of 2024.

More tracks can reduce dependence on highways

The construction of railway corridors would allow transferring part of the heavy loads currently transported by trucks. A train can replace dozens or even hundreds of vehicles, depending on the number of wagons, the type of goods, and the capacity used.

This does not mean abandoning highways. Trucks would remain indispensable for regional routes and for the initial and final stages of deliveries.

The railway would primarily assume long routes, forming an integrated system with roads, waterways, ports, and terminals.

This division can reduce fuel consumption, vehicle maintenance costs, and pavement wear. It also tends to decrease the circulation of heavy loads on certain highway corridors, freeing up capacity for other users.

Different gauges hinder national integration

Another challenge is the existence of different gauges, the name given to the distance between the two rails. According to ANTT, the Brazilian concession network has three main standards.

When neighboring railways use incompatible measurements, trains cannot circulate freely between them. The cargo may need to be transferred to another train, increasing the time, complexity, and cost of the operation.

Therefore, the expansion of the network needs to be accompanied by technical planning, standardization in new projects, and solutions capable of integrating existing lines.

The priority should be to connect production areas, industries, consumer centers, and ports, avoiding the construction of isolated sections.

Railway works drive different industries

The economic effects of investments would not be limited to dealerships and train operators. The construction of a railway requires steel, cement, concrete, gravel, equipment, heavy machinery, electrical systems, signaling, technology, and engineering services.

The works also create opportunities for transportation, food, lodging, maintenance, and material supply companies.

Thus, contracts and jobs can reach different municipalities, including those located outside major economic centers.

After completion, the corridors continue to generate demand for maintenance, operation, security, and logistics services. By reducing transportation costs, they can also make Brazilian products more competitive in domestic and international markets.

Brazil invests a little over 2% of GDP in infrastructure

A study by the National Confederation of Industry indicated that Brazil invested approximately R$ 270 billion in infrastructure in 2024, an amount equivalent to 2.27% of the Gross Domestic Product. More than 70% of the resources originated from the private sector.

For 2025, the estimate was R$ 277.9 billion, corresponding to 2.21% of GDP, with the private sector accounting for 72.2% of the investments. The CNI assesses that the country would need to bring this level closer to 4% of GDP to advance in infrastructure modernization.

In this scenario, concessions, authorizations, and partnerships can play a decisive role, but they need to be accompanied by public planning, legal security, and continuity across different governments. Expanding railways is a long-term project, whose results depend on projects capable of surviving political and administrative changes.

More than increasing the number of tracks, the challenge is to build an integrated, efficient network connected to the country’s productive needs. This advancement could reduce costs, relieve highways, stimulate industry, and create conditions for more competitive economic growth.

Sources used: the ANTT reports that the railway concessions in operation total about 30.6 thousand kilometers and records the existence of three types of gauge in the national system.

The Chinese high-speed rail network surpassed 50,000 kilometers in December 2025; its modern expansion began with the Beijing–Tianjin line in 2008. China’s total railway network already exceeded 160,000 kilometers in 2024.

Sources that verify the data

1. Brazilian railway network with about 30.6 thousand km and three types of gauge
ANTT reports that the railway concessions in operation total approximately 30,571 kilometers and use metric, broad, and mixed gauges.
Link: https://www.gov.br/antt/pt-br/assuntos/informacoes-estrategicas/antt_em_numeros_v_29_04_2025_v_sei_v_o_2.pdf

2. Gauge differences hinder integration
A study by Enap explains that incompatible gauges may require cargo transshipment, wagon adaptation, or mixed tracks, increasing operational complexity.
Link: https://repositorio.enap.gov.br/bitstream/1/4179/1/Maur%C3%ADcio%20Ferreira%20Wanderley.pdf

3. Transshipments and waits increase time and logistics cost
The National Logistics Plan considers displacements, waiting at terminals, and transfers between modes in the calculation of transport costs.
Link: https://www.gov.br/transportes/pt-br/assuntos/PIT/politica-e-planejamento/publicacoes/pnl2025.pdf

4. A train can replace hundreds of trucks
A study by BNDES calculates that a composition with one hundred grain wagons can replace about 357 trucks, depending on the load and capacity used.
Link: https://web.bndes.gov.br/bib/jspui/bitstream/1408/3021/2/Transporte%20sobre%20trilhos%20no%20Brasil.pdf

5. Railways are efficient for large volumes and long distances
Ipea points out that rail transport consumes less fuel per ton transported and becomes more competitive in large-scale operations.
Link: https://repositorio.ipea.gov.br/bitstreams/5f3c3e6a-3e0b-4f2d-aedf-306a05a06020/download

6. Trucks remain important in the first and last stage
Studies by the Ministry of Transport advocate for the integration between highways, railways, waterways, ports, and transshipment terminals.
Link: https://www.gov.br/transportes/pt-br/centrais-de-conteudo/relatorio_corredores_logisticos_cana-de-acucar_v_1-0.pdf

7. Main cargo transported by railways
Infra S.A. lists iron ore, grains, fuels, steel products, cellulose, coal, cement, and containers among the main railway cargo.
Link: https://ontl.infrasa.gov.br/wp-content/uploads/2025/12/PANORAMA-DO-SISTEMA-FERROVIARIO-BRASILEIRO-14.12.25_.pdf

8. China surpassed 50,000 km of high-speed railways
Xinhua reported that the Chinese high-speed network exceeded 50,000 kilometers in December 2025.
Link: https://english.news.cn/20251226/558786c99de5428b98a84c3ff93300e3/c.html

9. Beijing–Tianjin line marked the beginning of modern expansion
The first line of the modern Chinese high-speed system began operation on August 1, 2008.
Link: https://english.news.cn/20251226/558786c99de5428b98a84c3ff93300e3/c.html

10. China already had more than 160,000 km of railways in 2024
The Chinese government reported that the country’s total railway network exceeded 160,000 kilometers in 2024.
Link: https://english.www.gov.cn/news/202412/25/content_WS676b4143c6d0868f4e8ee40b.html

11. Brazilian investments in infrastructure
CNI reports that Brazil invested R$ 266.8 billion in 2024, equivalent to 2.27% of GDP. The amount of R$ 270 billion is a rounding.
Link: https://noticias.portaldaindustria.com.br/noticias/infraestrutura/72-dos-investimentos-em-infraestrutura-em-2025-serao-da-iniciativa-privada-diz-estudo-da-cni/

12. Projection for 2025
The estimate was R$ 277.9 billion, equivalent to 2.21% of GDP, with 72.2% of investments coming from the private sector.
Link: https://agenciabrasil.ebc.com.br/economia/noticia/2025-06/cni-estima-que-investimento-em-infraestrutura-vai-crescer-42-em-2025

13. Brazil should invest about 4% of GDP
The CNI advocates that investments in infrastructure should approach 4% of GDP to reduce bottlenecks and modernize the country.
Link: https://cni.portaldaindustria.com.br/atuacao/infraestrutura

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Fabio Lucas Carvalho

Journalist specializing in a wide variety of topics, such as cars, technology, politics, naval industry, geopolitics, renewable energy, and economics. Active since 2015, with prominent publications on major news portals. My background in Information Technology Management from Faculdade de Petrolina (Facape) adds a unique technical perspective to my analyses and reports. With over 10,000 articles published in renowned outlets, I always aim to provide detailed information and relevant insights for the reader.

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