The Contested Railway, whose construction triggered a war between 1912 and 1916, has been stopped since the 1990s, but Canoinhas (SC) requested a feasibility study and the federal government is analyzing with the IDB and Rumo the future of idle railway segments in the country.
The Contested Railway, whose construction sparked a war that killed thousands in Southern Brazil, has returned to the center of discussions about infrastructure in Northern Santa Catarina after the municipality of Canoinhas requested, in early 2026, the preparation of an EVTEA (Technical, Economic, and Environmental Feasibility Study) to determine if the section deactivated for more than 30 years can still be reused. The study focuses on a segment that connects Caçador to the section of Mafra, with an outlet to the Port of São Francisco do Sul, a route that could lower the freight costs of agricultural and industrial products from the region. The analysis will examine potential demand, reactivation costs, track conditions, operational capacity, and environmental impacts.
Alongside the municipal effort, the federal government is also taking action. The Ministry of Transport confirmed that it has already begun surveys, in cooperation with the Inter-American Development Bank, to evaluate inactive railway sections across the country, and the railway in Canoinhas is among those that will be analyzed. The surveys should indicate whether reactivation is justified from a technical and economic point of view and how the operation could be resumed. The final decision will rest with the federal government, as the railway is part of the network operated by Rumo under a concession valid until 2027.
The war that the construction of the railway provoked in Santa Catarina

The Contested Railway carries a history that goes beyond engineering. Its construction in the early 20th century was at the center of one of the most violent armed conflicts in Southern Brazil: the Contested War, fought between 1912 and 1916 in the region disputed by Santa Catarina and Paraná. At the time, lands where peasant communities lived were ceded to companies involved in the construction of the old railway, expelling residents who depended on that land for survival.
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Without land and without work, thousands of people began to organize in resistance against authorities and large landowners. The confrontation lasted four years, left thousands dead, and deeply marked the cultural identity of the interior of Santa Catarina and Paraná. The railway that motivated the conflict operated for decades after the war, driving the development of municipalities like Canoinhas by facilitating the flow of timber and yerba mate, until it lost relevance in the 1990s with the shift of the Brazilian logistics model to highways.
Why the railway was decommissioned and what has changed since then

The railway line in the Canoinhas region lost its operational function after the implementation of the so-called Southern Trunk Railway, which connects Paraná to Rio Grande do Sul via a different route. The concessionaire Rumo, responsible for the Southern Network, reported that the decommissioning occurred even before the start of the current concession contract, and that the section has remained inactive since then. With the tracks unused, the stations became cultural heritage, and the railway transformed into a historical symbol.
The logistical landscape, however, has changed in the last three decades. The cost of road transport has risen, the region’s roads suffer from poor maintenance, and the demand for the flow of agricultural and industrial production has grown. These factors have reignited the discussion about whether the railway can still fulfill the role it played in the past, now with different cargo volumes and destinations than those that justified its original construction over a century ago.
What the technical study will analyze about the railway
The EVTEA requested by the municipality of Canoinhas has a defined scope: to assess whether the reactivation of the railway in the section between Caçador and the Mafra branch makes sense today. The survey will cross data on cargo demand in the region with the estimated costs to recover tracks, bridges, stations, and signaling systems that have been abandoned for three decades. The connection with the Port of São Francisco do Sul is the main logistical attraction, as it would allow products from the interior to flow directly to the coast without relying solely on trucks.
The municipal administration argues that the railway boosted local development in the past and that the study should determine if it can play that role again. The challenge is that the existing infrastructure may be deteriorated to the point of requiring investment equivalent to that of a new construction, which would completely change the viability equation. Only the result of the EVTEA will indicate whether the reactivation is economically justifiable or if it will remain a regional aspiration without technical support.
Who decides the future of the railway and why the answer is not simple
The reactivation does not depend solely on the will of Canoinhas or the state government. The section belongs to the network granted to Rumo, whose contract is valid until 2027, and any decision regarding the railway’s fate necessarily involves the federal government, which holds the concession. The Secretary of Ports, Airports, and Railways of Santa Catarina confirmed this limitation: the state can support studies and politically articulate, but it does not have decision-making power over the operation of the section.
Rumo, in turn, maintains a dialogue with the federal government about possibilities for the Southern Network as a whole. The company does not rule out changes but conditions any definition to the decisions of the Union, a stance expected from a concessionaire operating under a regulated contract. The most likely scenario is that the results of federal studies, conducted in partnership with the IDB, will be cross-referenced with the municipal EVTEA to form a complete diagnosis of the railway before any concrete decision is made.
What the possible return of the railway would mean for Northern Santa Catarina
If the studies indicate feasibility, the reactivation of the railway would open a logistics corridor between the interior of Santa Catarina and the coast that currently does not exist. Grain, wood, and manufactured goods producers from the regions of Canoinhas, Caçador, and Mafra would have an alternative to road transport, reducing freight costs and decreasing the flow of heavy trucks on state roads. The railway connection with the Port of São Francisco do Sul would add competitiveness to the region’s exports.
The impact would go beyond the economy. The railway that generated a war, boosted cities, and was abandoned for three decades would operate again on the same tracks that carry the memory of thousands of dead from the Contestado. The decision about its future involves viability numbers, concession contracts, and federal politics, but for the residents of the region it also involves identity, history, and the hope that a century-old infrastructure can still serve the development of those who live along its path.
And you, do you think that deactivated railways should be repurposed or should Brazil invest in completely new lines? Do you know the history of the Contestado War? Leave your opinion in the comments.

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