Brazilian private sector submits 64 applications for new railroads with investment of US$31.7 billion

RIO DE JANEIRO, BRAZIL – The total number of applications for new railroads submitted to the Brazilian Federal Government by the private sector has reached 64. These were made through the authorization regime in the Railway Legal Framework, sanctioned on Thursday, December 23, by President Jair Bolsonaro.

In detail, 60 applications were submitted to install railway lines and another four for shunting yards.

Submitted to the Ministry of Infrastructure (MInfra), the requests amount to US$31.718 billion in investments and represent an addition of 15 thousand kilometers to the railroad network implemented in the country.

Gathered at Pro Trilhos, the proposals were submitted by 22 different companies and had 16 units of the Federation as origin and destination.

The projects cover areas in Minas Gerais, Espírito Santo, São Paulo, Paraná, Santa Catarina, Mato Grosso, Mato Grosso do Sul, Distrito Federal, Goiás, Maranhão, Pernambuco, Piauí, Bahia, Tocantins, Pará and Roraima.

The mark reached by Pro Trilhos represents 50% of Brazil’s entire railroad network, which currently totals some 30 thousand kilometers. Private investments for the execution of the new railways authorized 23 times the whole Ministry of Infrastructure budget in 2021, which is responsible not only for railroads but also for all federal transportation.

ABOUT THE PROCESS

All applications follow the same procedure: after checking the documentation at the National Secretariat of Land Transportation (SNTT), the National Land Transportation Agency (ANTT) analyzes whether the project has convergence with the national rail network, whether granted or not.

Then, again at the SNTT, it evaluates whether the proposal complies with the national transport policies and the railway sector guidelines. Once the process is completed, the Public Power may authorize the applicant to execute the requested section.

So far, nine railroads have already passed all stages and are authorized by the Federal Government. Together, they have a projected investment of US$886 million and 3,506.79 km of new tracks.

Four other proposals have already been approved by ANTT and are awaiting final deliberation by SNTT. The teams from both areas continue to evaluate the new projects submitted to MInfra.

Created by Provisional Measure 1.065/2021, the Legal Framework for Railways was finalized by the National Congress on December 14.

The new legal framework simplifies the regulatory burden for investments in the sector, allowing companies to develop their segments with 100% private resources.