New Regulatory Framework for Railways Has Just Attracted 89 Proposals Worth Billions, Through the Pro Trilhos Program, Which Will Generate Jobs and Diversify Brazil's Cargo Logistics

New Regulatory Framework for Railways Has Just Attracted 89 Proposals Worth Billions, Through the Pro Trilhos Program, Which Will Generate Jobs and Diversify Brazil’s Cargo Logistics

Written by Junior Aguiar

Published on 09/10/2022 at 13:53

tcdb374 Transporte de cavaco na Ferrovia Norte Sul. Viagem de Palmas-TO a Anápolis-GO. Dezembro 2016 Foto: Tina Coêlho/Terra Imagem

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Federal Government Program Allows Private Initiative to Design, Operate, and Build Rail Lines Across Brazil. The Most Recent Requirements Are from VLI Multimodal, Which Will Invest Over 5 Billion

The Pro Trilhos program, created by the Ministry of Infrastructure in August 2021, has attracted 89 proposals for new railway construction so far, presented by 39 private companies. The projects exceed 22,440 kilometers of new tracks across all regions of the country, with projected investments estimated at around R$ 258 billion. All stemming from the new regulatory framework for the modal. The first authorized railway was announced in January.

The Ministry of Infrastructure expects that within 30 years, the new railways and/or those to be put into operation will lead to an increase in the modal’s share of cargo transportation by over 40%, as projected in the latest edition of the National Logistics Plan (PNL).

The interest of the private sector, as well as the need for improvement and expansion of the railway system in Brazil, is evidenced by the fact that 81 of the 89 Pro Trilhos projects to date were submitted during the validity of Provisional Measure No. 1,065/2021, a regulation with the force of law issued by President Jair Bolsonaro, deemed relevant and urgent. The remaining projects have begun to be processed directly at the National Land Transportation Agency (ANTT), governed by Law No. 14.273, of December 23, 2021, already approved and known as the Regulatory Framework for Railways.

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Sections of Railways Already Authorized by the Pro Trilhos Program:

Bracell Celulose: Lençóis Paulistas (SP) – 4.29 km;
Bracell Celulose: Lençóis Paulistas (SP) to Pederneiras (SP) – 19.5 km;
Brazil Iron Mineração: Abaíra (BA) to Brumado (BA) – 120 km;
Eldorado Brasil Celulose: Três Lagoas (MS) to Aparecida do Taboado (MS) – 88.9 km;
Ferroeste: Cascavel (PR) to Chapecó (SC) – 286 km;
Ferroeste: Cascavel (PR) to Foz do Iguaçu (PR) – 166 km;
Ferroeste: Guarapuava (PR) to Paranaguá (PR) – 405.2 km;
Ferroeste: Maracaju (MS) to Dourados (MS) – 76 km;
Fazenda Campo Grande: Santo André (SP) – 7 km;
Grão Pará: Alcântara (MA) to Açailândia (MA) – 520 km;
Macro Desenvolvimento: Presidente Kennedy (ES) to Sete Lagoas (MG) – 610 km;
Macro Desenvolvimento: Sete Lagoas (MG) to Anápolis (GO) – 716 km;
Minerva: Açailândia (MA) to Barcarena (PA) – 571.3 km;
Petrocity: Barra de São Francisco (ES) to Brasília (DF) – 1,108 km;
Petrocity: São Mateus (ES) to Ipatinga (MG) – 410 km;
Planalto Piauí: Suape (PE) to Curral Novo (PI) – 717 km;
Porto do Açu: São João da Barra (RJ) – 41.17 km;
Rumo: Água Boa (MT) to Lucas do Rio Verde (MT) – 508 km;
Rumo: Uberlândia (MG) to Chaveslândia (Santa Vitória/MG) – 276.5 km;
VLI Multimodal: Água Boa (MT) to Lucas do Rio Verde (MT) – 508 km;
VLI Multimodal: Uberlândia (MG) to Chaveslândia (Santa Vitória/MG) – 276.5 km; and
VLI Multimodal: Porto Franco (MA) to Balsas (MA) – 230 km

The Renaissance of Railways in Brazil

The new Regulatory Framework for Railways allows for a favorable environment for private initiatives to invest with more security and freedom, aiming at the development of their businesses.

The project is a new chapter in the history of Brazilian infrastructure, following the collapse of the sector in the early 1990s. At that time, the state-owned Rede Ferroviária Federal Sociedade Anônima (RFFSA), which was responsible for a large part of this activity, was dissolved. Then, the existing railway network was divided into several concessions.

However, what we see today is an underutilization of the railway network. According to the Ministry of Infrastructure, only 25% of the tracks are in full operation, and 46% have low traffic. Meanwhile, 29% remain with no commercial operation at all. Currently, Brazil has just over 30,000 km of railway line, with 47% of the railway network located in the Southeast region, according to data from the Brazilian Association of Infrastructure and Basic Industries (Abdib).

Improvement of Railways and Social Development

There is an optimistic expectation of economic and social development regarding the projects presented so far through the Pro Trilhos program. It is estimated that at least 2.6 million direct and indirect jobs will be created with the modernization of the national railway network, in addition to reducing transportation costs, which would lower freight prices.

Companies would cease to be entirely dependent on this sector, which has inadequate bus stations in various states. Not to mention the savings on fuel and tolls and the reduction of CO² emissions.

New Regulatory Framework for Railways Has Just Attracted 89 Proposals Worth Billions, Through the Pro Trilhos Program, Which Will Generate Jobs and Diversify Brazil’s Cargo Logistics

Federal Government Program Allows Private Initiative to Design, Operate, and Build Rail Lines Across Brazil. The Most Recent Requirements Are from VLI Multimodal, Which Will Invest Over 5 Billion

Sections of Railways Already Authorized by the Pro Trilhos Program:

The Renaissance of Railways in Brazil

Improvement of Railways and Social Development

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Germany installed vertical solar panels on a lake in Bavaria, and the result broke conventional logic: instead of producing energy at midday peak, the plant generates more early in the morning and in the evening, exactly when families turn on appliances and factories are in full swing.

While communities suffer from water scarcity and the advancing desert, women in Morocco use nets high up in the mountains to trap fog droplets, fill reservoirs, and transport drinking water through more than 10 km of piping.

Berlin opens a 25,000 m² hole in the center and unearths its medieval origins, with archaeologists racing against construction to save coins, latrines, shoes, ceramics, and bones of the first inhabitants before the site soon becomes urban apartments.

Mother and daughter left the city, became cheesemakers, and now sell sheep’s milk products in RS, according to a report, with award-winning sweets, their own agribusiness, and a demanding routine balancing motherhood, animals, climate, production, and sales in a niche market.

Small city in Rio Grande do Sul receives Havan megastore with 11,000 m², four cinemas, and a food court, in a unit that will be the 192nd of the chain and reinforces the expansion plan for all Brazilian states.

COSCO’s multipurpose ship docks at Sepetiba Tecon with containers, vehicles, steel coils, and subway cars, reinforcing schedules that handle different cargoes in a single operation at Brazilian ports.

Houses with unrecyclable plastic become an option for families: they use RESIN8 blocks, solar panels, efficient stoves, and have international certification while transforming difficult waste into social housing.

New Regulatory Framework for Railways Has Just Attracted 89 Proposals Worth Billions, Through the Pro Trilhos Program, Which Will Generate Jobs and Diversify Brazil’s Cargo Logistics

Federal Government Program Allows Private Initiative to Design, Operate, and Build Rail Lines Across Brazil. The Most Recent Requirements Are from VLI Multimodal, Which Will Invest Over 5 Billion

Sections of Railways Already Authorized by the Pro Trilhos Program:

The Renaissance of Railways in Brazil

Improvement of Railways and Social Development

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

A Chinese factory in Guangdong is assembling a humanoid robot every 30 minutes while Tesla, Figure, and Boston Dynamics still struggle to deliver 10 thousand per year.

Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

Secret chamber sealed 4,500 years ago found in the Pyramid of Khufu, and Hawass announces its opening to the world in 2026

A public school student single-handedly created a machine capable of treating water for up to 50 people using only solar energy. It was awarded third place at one of the most important science fairs in the world.

Germany installed vertical solar panels on a lake in Bavaria, and the result broke conventional logic: instead of producing energy at midday peak, the plant generates more early in the morning and in the evening, exactly when families turn on appliances and factories are in full swing.

While communities suffer from water scarcity and the advancing desert, women in Morocco use nets high up in the mountains to trap fog droplets, fill reservoirs, and transport drinking water through more than 10 km of piping.

40 kg of bananas no longer descend mountains on workers’ backs and instead fly by drone in Yunnan, as China trains new rural pilots to turn agricultural transport into a profession.

Crisis in Ormuz boosts traffic through the Panama Canal and transforms the strategic route into an unexpected money-making machine for the Central American country amid the current and urgent global maritime chaos.

The world’s largest immersed tunnel is being sunk in 79 concrete segments between Germany and Denmark to shorten the Hamburg–Copenhagen journey by 4 hours.

Expensive shipping causes 57% of consumers to abandon online shopping in Brazil, according to a Nuvemshop survey.

While Ferrogrão has been stalled for 16 years in Brazil, Chinese engineers are drilling 34.5 km of rock under Gaoligong Mountain to open Asia’s largest railway tunnel.

Berlin opens a 25,000 m² hole in the center and unearths its medieval origins, with archaeologists racing against construction to save coins, latrines, shoes, ceramics, and bones of the first inhabitants before the site soon becomes urban apartments.

Mother and daughter left the city, became cheesemakers, and now sell sheep’s milk products in RS, according to a report, with award-winning sweets, their own agribusiness, and a demanding routine balancing motherhood, animals, climate, production, and sales in a niche market.

Small city in Rio Grande do Sul receives Havan megastore with 11,000 m², four cinemas, and a food court, in a unit that will be the 192nd of the chain and reinforces the expansion plan for all Brazilian states.

COSCO’s multipurpose ship docks at Sepetiba Tecon with containers, vehicles, steel coils, and subway cars, reinforcing schedules that handle different cargoes in a single operation at Brazilian ports.

Houses with unrecyclable plastic become an option for families: they use RESIN8 blocks, solar panels, efficient stoves, and have international certification while transforming difficult waste into social housing.