1. Home
  2. / Logistics and Transport
  3. / Presidential decree authorizes the merger of EPL and Valec to create a new company focused on reducing operating costs in transport projects
reading time 3 min read

Presidential decree authorizes the merger of EPL and Valec to create a new company focused on reducing operating costs in transport projects

Written by Ruth Rodrigues
Published 27/05/2022 às 12:01
The Brazilian transport sector will now have a new company after the authorization of the merger of EPL and Valec through a presidential decree, whose main objective is to provide a reduction in operating costs in ongoing projects
Photo: Gondilberto Filho (Valec)

The Brazilian transport sector will now have a new company after the authorization of the merger of EPL and Valec through a presidential decree, whose main objective is to provide a reduction in operating costs in ongoing projects

According to the Federal Official Gazette released last Wednesday (25/05), there was a presidential decree at the beginning of the week that authorized the merger of the state-owned companies: Empresa de Plano e Logística (EPL) and Valec – Engenharia, Construções and Ferrovias, for the creation of Infra S/A. This will have main focus in the development of projects aimed at the Brazilian transport sector and will be responsible for a strong reduction in operating costs.

EPL and Valec may join together to form a new Brazilian company focused on the development of new projects aimed at the transport sector

After the presidential decree authorizing the merger, the companies EPL and Valec will be able to merge the companies to form a new Brazilian company, Infra S/A. The official decree was published this past Wednesday and the merger of the companies will form a company focused primarily on the development of projects aimed at the transport sector in the national territory over the next few years, according to EPL and Valec. 

In addition, one of the main objectives with the merger of both companies to form the new transport company is to reduce the operating costs of projects under development. This happens because the forecast is that R$ 90 million will be saved in operating costs per year with the union of EPL and Valec. And, with the publication of the presidential decree authorizing the merger, the forecast is up to 180 days for the company to become definitively effective, after an agreement signed between the companies for this to happen. 

In addition, Infra S/A will be responsible for working on projects of a strategic nature with the use of technology, focusing on modernizing the infrastructure, in addition to supporting projects for environmental and territorial management of infrastructure projects, as well as providing consultancy on infrastructure for Brazil. Thus, the joining of EPL and Valec will be able to contribute not only to the reduction of operating costs, but also to make the Brazilian transport and infrastructure sector even more efficient and modern.

Projects in progress by the companies will continue with the creation of Infra S/A and the Federal Government expects a strong reduction in operating costs with the decision

The creation of a new company focused on the transport sector in Brazil will be essential for the sector and the Minister of Infrastructure, Marcelo Sampaio, commented on the importance of the union of EPL and Valec for the current scenario of infrastructure and transport in the country. The minister stated that “The company will increase productivity and increase efficiency in the structuring of infrastructure projects, always thinking about transport logistics, structuring the future, without any discontinuity to what is in progress”.

And the main highlight for this decision is the reduction of operating costs, since, only in the initial phase of the merger, there should be a saving of BRL 30 million with the reduction of expenses with personnel and functions, as well as the reduction of costs operation of the two companies. In addition, the government estimates savings of R$ 90 million per year from the second year of operation of the company. 

Finally, all ongoing projects by EPL and Valec will be incorporated by the new company, such as the works on sections II and III of the West-East Integration Railroad (Fiol) and the inspection of the works on the Central-East Integration Railroad. Oeste (Fico), in addition to other developments planned for the future.

Be the first to react!
React to article
Ruth Rodrigues

Graduated in Biological Sciences from the State University of Rio Grande do Norte (UERN), she works as a writer and scientific disseminator.

Share across apps