Brazilian Government to Double Amount of Rail Freight Transportation

RIO DE JANEIRO, BRAZIL – The Minister of Infrastructure, Tarcísio Freitas, said yesterday, August 8th, in São Paulo, that the government intends to nearly double the percentage of cargo carried by rail over the next eight years.

“We plan to increase the share of railroad transportation from fifteen to 29 percent in eight years,” he stated during a lecture.

He said creative solutions are being pursued to overcome the shortage of funds and get the projects off the ground. “We will build assets without depending on the budget,” he said.

By way of example, Freitas said that part of the Midwest Integration Railroad, which is expected to carry grain production from the region, should be built by mining company Vale as a counterpart to the renewal of the concession contract for the Vitória-Minas Railroad. “The grant that it would pay the Treasury would be used to build a railroad,” Freitas commented on the agreement.

The minister further noted that agreement drafts will be drawn up to terminate the contracts with road and airport operators facing financial difficulties.

Among the companies interested in returning the assets is the operator of Viracopos Airport, in Campinas (SP), and the BR-040 highway, which crosses Goiás, the Federal District, and Minas Gerais.

According to the minister, the companies have raised issues both over the bidding model and the involvement of certain entrepreneurs in corruption cases uncovered by Operation Lava Jato.

The plan is to introduce additions to contracts to keep highways and airports in a good state of repair and running until the assets may be passed on to other entrepreneurs.