July 17, 2018

Brazil includes two railways in concession plans

Written by  Renata Passos
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Brazil's North-South Railway will be extended. Brazil's North-South Railway will be extended.

BRAZIL’s Investment Partnership Programme (PPI) Council confirmed on July 6 the inclusion of two new railways in the government's concessions programme: the Rio - Vitoria line and the northern section of the North-South Railway (FNS).


According to the general secretary of the Brazilian presidency, the construction of the Rio - Vitoria line will be possible through extensions of existing concession contracts, such as qualified railways.

The 578km line, of which 404km will run through Rio de Janeiro state, will connect the ports in Rio de Janeiro and Espírito Santo states. In 2015, the project cost was estimated at Reais 7.6bn ($US 1.9bn).

Engineering designs will be created for the FNS between Açailândia and Barcarena, connecting it to Vila do Conde port. The 477km line is considered one of the most difficult to build and a technical and economic feasibility study completed by Valec in 2012 predicted a total cost of Reais 3.7bn.

The new line will provide an alternate route to Pará, which is currently restricted to the Carajás Railway (EFC) that continues to the port of Itaqui, in Maranhão.

Logistics Plan

The council also approved the National Logistics Plan (PNL) to increase investment in logistics and to identify priority works in the long term, including early renewal of rail concessions. In exchange for a 30 year extension of their contracts, the operators promise to invest Reais 25bn in the expansion of the rail network.

According to the PPI secretary, Mr Adalberto Vasconcelos, one of the priorities of the federal programme is to expand the country's rail network. The PNL aims to double the share of freight carried by rail from 15% to 31% by 2025.

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