RIO DE JANEIRO, BRAZIL – The Brazilian government is now adopting a new, faster, and more bureaucratic concession model. It is known as “authorization”, an instrument already foreseen in Brazilian legislation but little used. This model is now being used to give a jumpstart to the railway industry.
According to the Minister of Infrastructure, Tarcísio Gomes de Freitas, the initial forecast was eight requests for the new type of concession. But, to the ministry’s surprise, there are already 35 requests for authorization, which should represent around 9 thousand kilometers of railroads and R$120 (US$22) billion in investments.
“It is a railroad boost without precedent in our history,” said Freitas. The expectation is that railroads, representing 20% of the Brazilian transit modes, will double their presence in 15 years to 40%. “We should reduce the Brazil cost in the order of 30%.”
With information from Agencia Brasil