Brazil to Start Railroad Concessions in First Semester of 2019

By Lise Alves, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – Brazil’s government plans to conduct three new railroad concessions by the beginning of 2020, said Infrastructure Minister, Tarcisio Gomes de Freitas, over the weekend.

“With these actions, the participation of the rail way in the transport matrix should double until 2025,” said the minister on a video posted in his social media.

According to the minister, in March the first stretch will be opened for concession bids. The stretch will link Porto Nacional, in Tocantins state, to Estrela D’Oeste, in São Paulo state; integrating a connection between the ports of Itaqui (MA) and Santos (SP).

The other two concessions are due to be held in 2019 or until the beginning of 2020 will be the so-called West-East Integration Railway, (Fiol) (537km stretch between Caetité and Ilhéus in Bahia state), and Ferrogrão (933km from Sinop (MT) to the port of Miritituba (PA), in the Tapajós river).

In July of 2018 the Temer administration created the National Rail Development Fund (FNDF) to boost the sector.

At the time the government also announced a partnership with the private sector for the construction of railways considered strategic.

“It is important to give continuity, to continue transferring assets to the private sector and for this I am counting on the secretariat of the PPI [Investment Partnerships Program], which has been instrumental in achieving these goals,” said the new Infrastructure Minister in the Bolsonaro Administration.