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Multimodality through railroads is the way forward: the Federal Government signs the first contracts and the private sector can now develop projects for the Brazilian rail network

Written by Paulo Nogueira
Published 13/12/2021 às 16:11
Updated 21/12/2021 às 17:04
Railways federal government private initiative
Chip transport on the Norte Sul Railway. Trip from Palmas-TO to Anápolis-GO. December 2016 Photo: Tina Coêlho/Terra Imagem

Return of passenger trains and expansion of the rail network for cargo transport in Brazil are now real possibilities

The new railroad framework, which has already begun to authorize the first concessions in a privatization model, needs adjustments to effectively favor the country, says the president of FerroFrente

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Source: CNN Brazil

In the view of José Manoel Ferreira, graduated in Engineering and current president of FerroFrente, which is an organization whose purpose is to stimulate the return of Ferrovias, including trains for passenger itineraries and maximization of the rail network for the transport of cargo in Brazil, the New Marco Legal das Ferrovias still does not contemplate the real needs of the segment.

In the view of José Manoel Ferreira, graduated in Engineering and current president of FerroFrente, which is an organization whose purpose is to stimulate the return of Ferrovias, including trains for passenger itineraries and maximizing

“We have a country of continental dimensions and we don't have consistent passenger rail transport”, says José Manoel Ferreira Gonçalves, engineer and president of FerroFrente.

“Despite having this greatness, we continue only exporting commodities for the ports, especially for the Port of Santos. We need to create load concentration centers, load distribution centers, and use all of our modality potential. We have to serve a huge domestic market in Brazil with medium and long-distance passenger transport over the rails, and also focus on transporting products that supply the domestic market, lowering the cost of food and making it easier for there to be a reduction in social inequalities”, emphasizes José Manoel. 

Last week, on 09/12/2021, the federal government signed the first agreements enabling companies to develop railroad projects in a pioneering way. The ideas are based on the rules of the new Marco Legal das Ferrovias, which has been in force since August 2021, through an edited MP. The text allows for a railway regime in Brazil called “authorization”. In this text, new layouts are created specifically by the will of the private sector and without the need for bidding.

The model is still not ideal. For some sector analysts, this movement represents a breakthrough and ample possibility of investment in the sector. In the opinion of José Manoel Gonçalves, Brazil really needs to urgently expand its rail network. “However, we have to have multimodality to expand the existing system in a rational way. We remain dependent on models that do not value our ability”. “This chosen model of the new framework is not the best for Brazil

It serves what we call ´shortlines´, which would be small railway lines, authorized to run on top of an existing concession. It solves the problem to some extent. What is not being treated in depth is the so-called right of way. The ideal model would be that of horizontal concession, with the state participating in the process, guiding and defining directions, bringing free initiative, but not neglecting its role”.

Data indicate that railroads account for only 15% of cargo transport, while highways account for around 65% of this type of transport. “Our transport matrix is ​​still very concentrated on tires. São Paulo has just over 100 km of metro, we should have at least 500 km. Brazil needs a project that deals with urban mobility in a different way.”

“Metrorail policy would have to be connected with railway policy. This common sense is lacking”, stresses the president of FerroFrente. “We have to serve a huge domestic market in Brazil with medium and long-distance passenger transport over the rails” “Our engineering, for example, is not moving forward, it does not produce alternatives, and it has already done wonderful things for the country. We could have a large bank of projects for railroads”, he concludes.

Paulo Nogueira

With a technical background, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.

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