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TCU Exposes Ghost Railway: 56% of the Network with Fewer Than Two Trains Per Day, Decades of Road Dependence and Minimal Investment Drive Up Freight Costs and Delay Brazil

Written by Bruno Teles
Published on 25/09/2025 at 20:00
Relatório do TCU expõe a ferrovia fantasma: 56% da malha ociosa, com impacto no frete e no bolso, fruto de décadas de baixo investimento
Relatório do TCU expõe a ferrovia fantasma: 56% da malha ociosa, com impacto no frete e no bolso, fruto de décadas de baixo investimento
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Report Indicates Ghost Railway with 56% of the Network Operating with Fewer Than Two Trains Per Day and Highlights Decades of Road Dependency and Low Investment

The term ghost railway has fully entered the vocabulary of Brazilian infrastructure after the Federal Court of Accounts pointed out that 56% of the network has a flow of fewer than two trains per day, a clear sign of idleness and wasted capacity. The diagnosis sheds light on an old problem: the country prioritized roads, let tracks age, and today pays more to transport goods.

The scenario described by the TCU helps to understand why the ghost railway makes freight more expensive and delays deadlines. Years of road dependency, disconnected sections, and timid investment have created bottlenecks that impact ports, industries, and agribusiness. The cost falls on the entire economy.

Where the Network Disappears: Map of Idleness and Disconnection

The ghost railway is not a lack of tracks, but a lack of trains running. In much of the country, old lines, outdated maintenance, and unfinished sections result in minimal operation throughout entire days. When few trains circulate, the railway loses its main advantage: high volume with lower cost per ton.

Another critical point is the low integration between railways, roads, and ports. Without efficient yards and fluid connections to maritime terminals, the train loses logistical speed. Lines migrate to the port, and waiting costs contaminate freight from start to finish of the chain.

How We Got Here: Decades of Road Dependency and Short Investment

The ghost railway has historical roots. From the 20th century onward, the State concentrated efforts on opening roads, boosting the automotive industry and road networks. Tracks were left behind, without continuous modernization, and the network shrank in relevance.

With the privatization in the 1990s, concessions brought some relief, but prioritized more profitable corridors. Lower-return sections were left without structural works and accumulated returns, operational restrictions, and low interpenetration between networks, which hinders access for third-party loads.

Concessions Under Pressure: What Works and What Bottlenecks

The ghost railway reveals limits of the model. Contract renewals aim for predictable investment, but deliveries and schedules need strict oversight to materialize. When regulation fails, the priority becomes the concessionaire’s own shipments and the system loses cargo diversity.

However, there are correction windows. Rebalancing, performance targets, and third-party access obligations can increase the use of the tracks and reduce idleness. Technical interoperability and clear passage rules are key aspects to transform installed capacity into trains effectively running.

Ports and Terminals: The Link That Determines Efficiency

Even where the ghost railway is replaced by busy sections, bottlenecks return at port accesses. Singly line, conflicts with freight trains, and undersized yards create last-mile bottlenecks. The result is predictable: missed docking windows and extra costs for ship layovers and storage.

The solution involves traffic segregation works, selective duplications, and multimodal yards. Every minute gained in accessing the port reduces costs and increases the competitiveness of exports, especially in agricultural and mineral commodities.

The Investment That Is Lacking: Why the Bill Doesn’t Add Up

The label of ghost railway also reflects a chronic gap in resources. Intermittent public investment and concentrated private returns create an unequal map of works, prioritizing high-volume flow corridors and delaying regional connections that would have a strong social impact.

Without long-term planning and a continuous project portfolio, the sector enters a cycle of peaks and valleys. Strategic sections remain without modernization and idleness persists, even when there is cargo demand that could migrate from asphalt to track.

Turning Signals: Projects and Policies in the Pipeline

For the ghost railway to lose strength, regulatory adjustments and structural projects are on the agenda. Reviewing concessions, planned auctions, and cross investments can address bottlenecks, from port accesses to integration branches with producing areas.

In high-potential corridors, integrating and exporting railways seek to shorten logistical distances. Meanwhile, states and the Union are discussing new authorizations and PPPs to expand reach, reconnect industrial hubs, and scale regional passenger trains where there is economic sense.

Onboard Technology: More Trains on the Same Track

The ghost railway is also a management challenge. Modern signaling, centralized dispatch, and real-time monitoring allow for shortening headways, putting more compositions on the same stretch, and increasing safety. With smart yards and predictive maintenance, asset availability rises and operating windows widen.

On the commercial side, booking systems and guaranteed windows for different clients reduce uncertainty and attract loads currently captive to trucks. The more predictable the train, the more it competes in terms of deadlines and price.

What Changes in the Pocket: Freight, Deadlines, and Competitiveness

The cost of the ghost railway is reflected in freight. Long-distance trucks cost more per ton, consume more fuel, and emit more CO2. Without a robust railway, Brazil loses margins, especially on low-value-per-kilo products, and sees industries pressured by longer deadlines and higher inventory costs.

When the track is functioning, the gain is direct: lower logistical costs, more reliable deadlines, fewer accidents, and emissions. In a competitive global market, every percentage point in freight can decide whether the load leaves through a Brazilian port or loses competitiveness abroad.

The ghost railway is a portrait of past choices, but does not have to be destiny. Integration of networks, focus on port access, performance targets, effective oversight, and technology form the minimum agenda to fill underutilized tracks with trains today.

Do you agree with the TCU’s diagnosis? In your region, is the railway halted? Did your company’s freight increase because of this? Share your experience in the comments and cite practical examples.

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Bruno Teles

Falo sobre tecnologia, inovação, petróleo e gás. Atualizo diariamente sobre oportunidades no mercado brasileiro. Com mais de 7.000 artigos publicados nos sites CPG, Naval Porto Estaleiro, Mineração Brasil e Obras Construção Civil. Sugestão de pauta? Manda no brunotelesredator@gmail.com

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