Rumo Signs Concession of North-South Railway Aiming to Reduce Brazil’s Costs

Railway Designed to Be the Backbone of the Brazilian Railway System Gains New Contract Signed by the Parties Last Wednesday (07/31)

Continuing the Federal Government’s New Railway Concession Program, Rumo, a Brazilian railway and logistics company owned by the Cosan Group, signed the concession contract for the central and southern sections of the North-South Railway last Wednesday (07/31).
The company acquired the concession in an auction held on March 28 by the National Land Transportation Agency (ANTT).

Rumo paid a premium of 100.92% over the previously established minimum value, totaling R$ 2.7 billion, and the concession contract will be for 30 years, with no extension.
The section of the concession signed with Rumo is 1,537 kilometers of railway between the cities of Estrela D’Oeste (SP) and Porto Nacional (TO).

The North-South Railway was designed to be the backbone of the Brazilian railway system and strategically integrate the national territory, starting construction in 1987.
The signed contract is fundamental for the country’s infrastructure, generating virtuous cycles of economic development, creating jobs, and helping to reduce the Cost of Brazil.

Rumo’s plan is to install terminals on the North-South Railway in the regions of the Goiás cities of São Simão and Uruaçu and a large terminal complex in the southwest of the State.
The company has a logistics subsidiary called Brado and intends for its trains to be operating by the end of 2019 on the North-South section between Anápolis (GO) and Porto Nacional (TO).

Company Will Undertake Works

Regarding job creation, the works that are expected to generate job positions are for railway infrastructure and will be carried out between Ouro Verde de Goiás (GO) and Estrela D’Oeste (SP), where the North-South connects to the Paulista Network.
ANTT (National Land Transportation Agency) forecasts a demand for the company of 1.7 million tons, and by 2055, this number is expected to reach nearly 23 million tons annually.

Rumo Logística’s business plan also includes dozens of projects at city terminals, such as the reactivation of the branches in Panorama (SP) and Barretos (SP).

Furthermore, investments to increase the capacity of the Paulista Network will allow trains from the North-South to reach the Port of Santos and enable cargo from São Paulo to reach the Midwest, facilitating the much-needed logistic integration in the country.

Read More About Investments in National Infrastructure! Port of Suape Aims to Expand Leadership in the Cabotage Market!