23.09.2021 | ABIFER | Notícias do Mercado
Fonte: BNAmericas Data: 03/09/2021
A recent decree signed by Brazilian President Jair Bolsonaro facilitating private participation in railways is paving the way for the construction of 10 stretches, with investments estimated at 53.5bn reais (US$10.3bn).
The decree signed at the end of August authorizes private players to build and operate freight rail lines under rights-of-use to be issued by the government. Previously, companies interested in operating or investing in the rail network had to compete in a tender process held by the government that could take years.
Since the decree, 10 requests for authorization to build railways were submitted under the program known as ProTrilhos, according to the infrastructure ministry.
The 10 involve around 3,300km of new lines, something that was celebrated by business leaders.
“The railway equipment industry is suffering from a high level of idle capacity in recent years. These initiatives, along with others by state governments in the area of urban mobility, are likely to have positive consequences in terms of new orders for the industry from next year,” Vicente Abate, president of national rail equipment manufacturers association Abifer, told BNamericas.
The decree is initially in effect for 120 days and the right-of-use are to be granted by the infrastructure ministry after an evaluation.
Congressional approval is required to ensure the decree remains valid in the long term and that is expected in the coming weeks.
The government looks to take advantage of the strong interest of the private sector in certain rail projects. ProTrilhos also has a political element, as investments in infrastructure are expected to be one of the pillars of Bolsonaro’s reelection campaign next year.
“We are making a railway revolution, the biggest in the last 100 years,” said infrastructure minister Tarcísio Gomes de Freitas during an event in which companies signed letters of intent to assume the projects. “With ProTrilhos we will respond to our biggest challenge, job creation. This is the most important step we’ve taken in infrastructure in recent years,” he added.
The names of the companies involved were not unveiled. However, one of the projects, No. 10 on the list below, will be assumed by mining firm Brasil Exploração Mineral (Bemisa) and comprises a 717km stretch and investment of 5.7bn reais, linking the port of Suape, in Pernambuco state, with Curral Novo in Piauí state.
The line is an unfinished stretch of the Transnordestina rail project and is likely to benefit mining in Piauí.
“The logistics for my mining project today have a limitation because of transport, where I’m forced to use trucks. But once the railroad is made possible, I will consider contacting Bemisa to ask for authorization to use their railroad,” Marcelo Prado, CEO of Brazilian mining firm SRN Mineração, told BNamericas.
SRN Mineração obtained in August the environmental license from Piauí state to begin the extraction of iron ore. SRN aims to eventually produce 2Mt/y of iron ore with investment of 600mn reais.
BNamericas takes a look in detail at the 10 rail projects expected to advance under the program.
1. Mato Grosso state
The 557km stretch will connect Água Boa and Lucas do Rio Verde municipalities, a region rich in agriculture. Estimated investment is 6.4bn reais.
2. Minas Gerais state
Some 2.7bn reais is expected to be invested in a 235km extension linking the cities of Uberlândia and Chaveslândia.
3. Maranhão state
A 245km line to link Estreito and Balsas, with investment of 2.8bn reais.
4. São Paulo state
An 8km line to access South America’s busiest port, Santos, needing 100mn reais.
5. Mato Grosso do Sul state
The central state will see a 76km extension and investment of 2.85bn reais.
6. Paraná state
Connecting the cities of Guarapuava and the port of Paranaguá, the 405km line requires investment of 15.2bn reais.
7. Paraná state
Also in southern Paraná state, 6.25bn reais will be invested in a 166km line connecting Cascavel and Foz do Iguaçu cities.
8. Maranhão state
Apart from No. 3 above, the northeast state is due to receive investment of 6.5bn reais in a 520km stretch.
9. Espírito Santo, Minas Gerais states
A 420km railway with investment estimated at 5bn reais will connect the cities of São Mateus, in Espírito Santo state, and Ipatinga in Minas Gerais.
10. Pernambuco, Piauí states
The 717km project will require 5.7bn reais to link Suape, in Pernambuco state, with Curral Novo in Piauí state.
