The uncertain future of the Transnordestina branch that would connect Suape

The company responsible for building the long-awaited branch of the railroad that would connect the largest port terminal in the Northeast withdrew from the project, resulting in a great political controversy with an exchange of barbs.

The Transnordestina railroad was strategically designed as an integrated solution for the transportation of products from the mineral industry and agribusiness such as soy, corn and cotton from Piauí and gypsum from Pernambuco, passing through port of Pecem, in São Gonçalo do Amarante (CE), and Suape, in Cabo de Santo Agostinho (PE), the largest port terminal in the Northeast. However, the company that has the concession from the Union for the implementation of the enterprise, returned to the granting authority the stretch in Pernambuco that would take the railroad to the maritime terminal in Pernambuco.

The decision by Transnordestina Logística to give up the branch line that would connect Suape caused a lot of dissatisfaction in the political environment of Pernambuco. The state governor, Raquel Lyra, on one of her trips to Brasília, spoke with the Minister of Development and Social Assistance, Family and Fight against Hunger (MDS), Wellington Dias, who is one of the articulators for the resumption of the railroad project , on financing alternatives for the return of work and for the initial project to be completed.

The withdrawal of the Transnordestina stretch that would connect Suape was endorsed by the Bolsonaro government. The change in the project went through the hands of the then Minister of Infrastructure, Tarcísio de Freitas, current governor of São Paulo. The change did not generate punishments for the responsible company. Thus, for the time being, the railroad is projected to run for 1.200 kilometers, from Elizeu Martins, in Piauí, to Pecém, passing through Salgueiro (PE), eliminating the second stretch of 500 km between Salgueiro and Suape. 

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The former governor of Pernambuco, Paulo Câmara, now without a party, was blamed for the concessionaire's abandonment of the Salgueiro-Suape section. According to the controller, there are four situations that would cause the project to be modified: the work on a dam upon arrival at Suape, which would result in a detour of more than 42km and for this to happen there would have to be new environmental licensing and expropriation permission ; a new detour (not detailed in how many kilometers) to avoid urban sections; the construction in the middle of the road of a private project built with the approval of the Government of Pernambuco; the fact that there would be no executive project, access lines, environmental licenses or expropriation processes in access to Suape.

On the other hand, Paulo Camara told a local blog that Transnordestina Logística “in 16 years of 'work', only carried out 35% of the work” and that “wanting to blame third parties for its inefficiency, already attested by the Federal Audit Court and by ANTT, does not seem to be the attitude of someone willing to to resolve the matter”. In January, the release of federal funds was suspended when verified by the regulatory bodies, precariousness, informality and imprecision of the work projects; mismatch between physical and financial execution, with strong indications that until then the payments made would be higher than the value of services completed; in addition to the inaccuracy of the work budget. 

Transnordestina: 15 years ago a dream that was never realized

The Transnordestina railroad was announced as a structuring project for the Northeast. But it's been 15 years since the beginning of the works, more than R$ 6,7 billion in investments and several imbroglios.

If it had already been concluded, the price of the products would have dropped, because a good part of the cargo would have stopped being transported by road and would have been transported by train.

The group that has the concession no longer invests in the project. Much of what has been spent so far has also come from the Northeast Investment Fund (Finor) of the Northeast Development Superintendence (Sudene).

In 2016, the works were stopped with 52% of the work completed. A year later, the Federal Court of Auditors oriented the stoppage of transfers of public money, due to a mismatch between the work schedules and the financial amounts released.

In 2019, the works were resumed based on an investment of BRL 257 million made by Companhia Siderúrgica Nacional (CSN). But new chapters full of controversy began after the announcement of the abandonment of the Salgueiro-Suape stretch and the suspension of federal funds.

The current federal government is trying to articulate the resumption of works. “The sooner we have a proposal capable of speeding up the completion of the work, the sooner we will be able to open doors for the arrival of investments from other sectors. The wealth that is in that region will only have a chance of becoming an economic factor with the delivery of the railroad”, declared the Minister of Development and Social Assistance, Family and Fight against Hunger, Wellington Dias, after a meeting with governors of the states through which the railroad is designed to pass.