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There Are 49 Bids for Private Railroads in Progress, Which Involves More Than R$ 165 Billion in Investments, Reports the Minister of Infrastructure
The Ministry of Infrastructure announced, on this Monday (20), updates on the numbers of private railroads. So far, privatization includes 49 projects and a budget of R$ 165.8 billion invested. According to the minister of the ministry, Tarcísio de Freitas, the concessions represent 12,900 kilometers of new tracks.
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The Federal Government has already authorized the construction of nine of the 49 private railroad projects, anticipating more than R$ 50 billion in investments. The requests are based on the new Legal Framework for Railroads, which allows for the construction of new tracks to be carried out solely through the private initiative.
“Not bad for a country that in 150 years built 28,000 km of railroads, and practically half of them operational”, said Tarcísio.
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A R$ 300 million logistics giant is taking shape in Serra with over 100,000 m² and raises a question: how can this transform e-commerce and distribution in the state?
With the new project, the construction of railroads will return to the patterns of the 19th century, when they were built by the private sector and had their first major “boom.” With new networks, it is expected that cargo transport by rail will reach more than 40% by 2035, reducing logistics costs by about 35%, according to the Minister of Infrastructure, Tarcísio de Freitas.
The New Legal Framework for Railroads
The new Legal Framework for Railroads was implemented through a provisional measure in August, allowing private companies to build new railway networks without bidding. The framework also provides for free competition and freedom of prices, without interference from the Federal Government regarding the tariffs charged for transportation.
“We are now seeing the beginning of the revolution that will make us a rail country once again,” said the National Secretary of Land Transport, Marcello Costa.
“There is no project in the transportation infrastructure area more transformative than this one,” said the Minister of Infrastructure, Tarcísio de Freitas.
The model already prevails in countries like the United States and Canada and was designed to allow companies to meet their own demands, without relying on third parties for that.
The Approved Railroad Bill Is the Most Important Project in Contemporary Brazilian History: The Transportation Sector Will No Longer Be So Dependent on Road Logistics
There has been much discussion about the Railroad Bill in recent days. No wonder. The proposal, long before being approved, was already considered the most important logistical project in contemporary Brazilian history.
The reasons for its importance are numerous. Basically, it aims to modernize the Brazilian railway system, boosting the economy with improvements in the logistics chain that involves the distribution of goods, especially from agribusiness.
Another essence of this improvement is that the private initiative will have more freedom to invest in the construction of new railroads and renovations of those currently out of use due to lack of investment or completion. Check out this article in full by clicking here.
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