Exploring Brazil's Railway Renaissance: Learn more about the New PAC and its vision of national transformation and development.
Brazil, known for its vast territorial extension and logistical challenges, envisions rail transport an opportunity for transformation and development. With the launch of Novo PAC, a comprehensive infrastructure investment program, the Brazilian government is directing significant resources to revitalize the sector rail and accelerate its recovery in the country.
This initiative represents an important milestone in the history of rail transport Brazilian, promising to boost the economy, generate jobs and promote regional development.
In this article, we will explore the details of the New PAC and its impact on the scenario rail national, highlighting the main projects and perspectives for the future of cargo and passenger transport in Brazil.
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How Rail Transport regained its leading role
O rail transport, recognized for its sustainability, efficiency and safety, has stood out as a fundamental means of boosting Brazil's socioeconomic development.
After decades of neglect, the sector began to regain its prominence in 2023, with specific incentive and reconstruction policies led by the Ministry of Transport.
With the implementation of the New PAC, projects railroad were elevated to the priority category by the Federal Government, with a planned investment of R$94,2 billion by 2026, according to news published by Civil House. This measure aims to encourage the expansion of the modal in the country, recognizing its strategic importance for the national economy.
“The task is not simple, since Brazil has continental dimensions, but it is extremely necessary. Therefore, we are discussing new models and we intend to more than quadruple the resources invested in railways in Brazil in the coming years”, highlighted the minister of Transport, Renan Filho.
The first year of management was marked by important advances in the railway sector, highlighting:
- Creation of the National Railway Transport Secretariat: With the aim of attracting private investment and boosting the industry and the sector's operation, this measure demonstrates the government's commitment to promoting the sustainable development of rail transport.
- Resumption of structural works: Projects such as the West-East Integration Railway (Fiol) and the completion of the North-South Railway (FNS) were resumed, signaling a new boost for the country's railway infrastructure.
- Investments in transnordestina: With a contribution of R$ 175 million, the Transnordestina works were boosted, contributing to strengthening regional integration and economic development in the Brazilian Northeast.
- Growth in railway movement: The country recorded a 4,2% growth in rail movement last year, highlighting the growing importance of this mode for transporting cargo and passengers.
- Structuring the National Railway Plan: A fundamental guideline for the growth of the sector, the National Railway Plan is in the process of being structured and should be launched soon, outlining the priorities and investments necessary for the development of the country's railway infrastructure.
- Studies for concessions: Several studies are underway for concessions of important railway sections, aiming to attract private investment and promote the modernization and expansion of the Brazilian railway network.
- Public consultation on rail passenger transport policy: In search of improvements and advances, the government promoted a public consultation on the rail passenger transport policy, aiming to improve the services offered and meet the demands of the population.
As a result of these efforts, we see the resumption of projects that were paralyzed, such as the West-East Integration Railway (Fiol), announced as the first project to make up the New PAC. With an investment of R$1,5 billion in the 127 kilometers of section 1F of lot 1, works continue at an accelerated pace, promising to establish a vital corridor for the flow of ore from the south of Bahia and grains from the west of Bahia. Lot 2, between Barreiras (BA) and Caetité (BA), 485 kilometers long, already has 65% of the planned works completed.
The railway industry and its impact on employment and income
The potential of the industry railway is reflected in significant numbers: currently, the sector employs around 66 thousand workers, according to data from Brazilian Railway Industry Association (Abifer). One of these workers is Álvaro Aguiar, 30 years old, who joined the Fiol construction site in 2013, through Infra SA, a public company linked to the Ministry of Transport. Initially working as a general services assistant, he was enchanted by the complexity and importance of the project, deciding to study civil engineering.
Currently, having already graduated, he is part of the technical team responsible for supervising the work.
Therefore, the sector rail Brazil is going through a phase of renewal and growth, driven by the government's commitment to sustainable development and the modernization of the country's transport infrastructure. With the New PAC and a series of strategic initiatives, the rail transport is consolidating itself as a fundamental piece for Brazil's economic and social progress.