Brazil approves construction of 9 privately run railroad lines, trying to rebuild railway network

RIO DE JANEIRO, BRAZIL – The Ministry of Infrastructure signed today (9) authorization for six business groups to start the construction of nine railroads in the country. The measure is part of the Pro Trilhos Program, which aims to expand the national railway network through private investments.

With the signature, the companies should invest about R$50 (US$8.9)  billion and add 3,500 kilometers (km) to the Brazilian network. According to the Ministry of Infrastructure, the idea is to reduce the underutilization of the Brazilian railway network.

Data from the Ministry indicate that only 25% of the tracks are in full operation, and 46% have low traffic. On the other hand, 29% are still not in commercial operation.

The railroads are located in the states of São Paulo, Mato Grosso do Sul, Paraná, Maranhão, Minas Gerais, Espírito Santo, Piauí and Pernambuco.

The contract for the execution of the work was signed by private companies Bracell, Ferroeste, Grão Pará, Macro Desenvolvimento, Petrocity and Planalto Piauí Participações.

Since September last year, after the launching of Pro Trilhos, the ministry has received 36 proposals for the construction of railroads by private enterprise. In total, projects were presented that correspond to 11,000 km of railroads in 14 states, with an estimated investment of R$150 billion.

The bill approving Pro Trilhos has already been approved in the Senate and should be voted in the Chamber of Deputies next Monday. If approved, it will go for presidential sanction.

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