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Investments To Be Made On The Center-Atlantic Railway Section In The State Of Bahia Will Be For Improvements To The Current Line
The state of Bahia could receive over R$ 3.5 billion in investment for the train circulation section between the state and the Southeast of the country through the Center-Atlantic Railway (FCA). These funds will be directed towards improvements to the current line, such as the replacement of rails and sleepers, as well as the acquisition of dozens of locomotives. Check out this news: Mining Company Vale Informs That The Construction Of The Railway Could Cost R$ 8.7 Billion
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Investments To Be Made On The Railway Section In The State Of Bahia
Such investments will provide a more agile and secure movement of various products, injecting even more efficiency into the business. Between 2019 and 2020, the cargo flow between the two states grew by almost 20%. In Bahia, the Center-Atlantic Railway has regular routes for petroleum derivatives, lime, iron ore, chrome ore, magnesite ore, containers, and cement.
Álvaro Neto, general manager of the corridor that connects Bahia to the Southeast of the country, says that the railway is the best mode for long distances and large volumes. In Bahia, there are large projects in the mining sector, and we are working to deliver efficiency for this and other sectors. The renewal allows us to have a long-term scenario, which is positive for everyone, says Álvaro.
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Silvana Alcantara, director of Institutional Relations and Regulatory Affairs at VLI, emphasizes that with the renewal of the Center-Atlantic Railway contract, the volume operated in the Bahia section will increase even more. “The demand study used by the regulatory agency is being updated. This means that the proposal presented will be appropriate to the current market reality. Soon, this survey will join the analysis of all contributions made by the public. The result will generate value for the state, strengthening our position as a partner of the economy and society of Bahia,” says the executive.
Job And Income Generation
The relevance of the Center-Atlantic Railway is observed from a uniqueness among other railway operators in the country: the vocation for general cargo. Camaçari, Brumado, Campo Formoso, Candeias (Port of Aratu), Pojuca, and Itiuba are other cities on the regional railway map, points for loading and unloading products. The network transports containers for Braskem, cement and clinker for LafargeHolcim, and ore for Bamin. The last two flows represent recent local investments.
In addition to the expected investments for the line upgrade, in recent years about R$ 150 million have already been invested. The amount applied, in fact, also reflected another important factor: the human aspect. Just to give an idea, the Center-Atlantic Railway generates nearly 500 direct and indirect jobs, with the majority (87%) occupied by local labor, keeping the money circulating in the region where these workers reside. This year, the company opened a recruitment process for hiring machinists and other professionals in the state, in yet another sign of the growing movement on the Bahia section of the Center-Atlantic Railway.
Check Out This News: Railway – R$ 26 Billion In Investments Are Expected For The Railway Sector In Minas Gerais, Generating Over 370,000 Jobs
The governor of Minas Gerais, Romeu Zema (Novo), signed a decree to transfer the administration of 19 railways in the state to the private sector. The expectation is to attract about R$ 26.7 billion for the railway sector. According to the Government, the operation of shorter lines, known as “shortlines,” can generate more than 370,000 jobs.
The desire, according to the Government, is to enable the first railway section in the country managed under the authorization model, whereby a private company operates at its own risk. With this move, the state of Minas Gerais anticipates the National Congress, which has yet to approve the bill that allows this type of regime in federal railways. The Legislative Assembly of the State of Minas Gerais has already approved the model, with only the regulation remaining, dispatched this Tuesday by Governor Romeu Zema. Minas has mapped 19 projects that could potentially be operated under the authorization model, with investments estimated at R$ 26.7 billion.
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