Rumo pulls out of continuing to manage Malha Oeste

Rumo, the current concessionaire of Malha Oeste, has given up managing the railway.  Originating from the former Northwest Railway of Brazil (NOB), Malha Oeste spans 1,973 km between Mairinque and Corumbá (MS) and has been under the control of the private sector since July 1996. In 2005, it absorbed a part of the old Sorocabana Railway ( EFS) under the Brasil Ferrovias division, which has controlled it since January 1999.

According to the company, a request for re-bidding has already been delivered to ANTT (National Land Transport Agency). Thus, the federal government will have to make a bid to choose a new concessionaire for the railway line.

According to Rumo, the waiver process “was amicably done and is supported by law”. The company explained that its business plan poses major challenges for the coming years, such as investments associated with the recent acquisition of the Norte Sul Railway and improvements in access to ports.

“The signature of the early renewal amendment to the concession of Malha Paulista, in May, also presents itself as an important challenge in Rumo’s business plan. The new contract provides for substantial investments both in the trunk line and in the reactivation of the Bauru-Panorama branch, which connects to the Port of Santos and crosses a region close to the São Paulo section of Malha Oeste “, justified the company in a note.

“During this process, the concessionaire ensures that it will continue to provide rail freight transportation services, enforcing the contracts signed with its customers,” said the company.

According to ANTT, “the technical area is now analyzing the admissibility of the order made by the concessionaire, observing what the legislation says”. The procedures for requesting a re-bidding process are set out in Law 13,448, of June 5, 2017, and Decree 9,957, of August 6, 2019.

Source: Region Leaf – Araçatuba / SP

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