São Paulo rail bypass could expand access to Port of Santos

Long considered one of the most important projects to expand rail access capacity to the Port of Santos, the São Paulo Ferroanel remains at an early stage. The project calls for the construction of a roughly 53-kilometer rail bypass between Itaquaquecetuba, in São Paulo state, and the Perus district in the city of São Paulo, with the goal of separating freight and passenger train traffic in the São Paulo metropolitan region.

In recent weeks, the initiative returned to the agenda after Brazil’s Ministry of Transport signed a memorandum of understanding with MRS Logística for the preparation of studies. The analyses will cover the route, operating capacity, urban and environmental impacts, land issues, implementation schedule, and preliminary estimates of investment and benefits.

If it moves forward, the Ferroanel could be included in the concession project for Malha Oeste, which still has no set date. The 1,625-kilometer railway links Mairinque, in São Paulo state, to Corumbá, in Mato Grosso do Sul, on the border with Bolivia, forming an important logistics corridor for cargo from Brazil’s Center-West.

Malha Oeste connects to Malha Paulista, which provides access to the Port of Santos and supports the movement of agricultural, mineral and other export cargoes. Last week, the fifth amendment to the contract was signed to ensure continued railway operations until a new concession is granted.

The Ministry of Transport said there is still no schedule for carrying out the Ferroanel project. According to the ministry, the studies are expected to be prepared within two years after the Malha Oeste concession contract is signed.

There is also no definition yet on the implementation model, source of financing or total project cost, as those decisions will depend on the technical studies.

“The implementation of the Ferroanel is planned as an additional investment under the Malha Oeste concession project, subject to contractual provisions, including the maintenance of the contract’s economic and financial balance. The Malha Oeste concession project is under review by the competent agencies and may be adjusted during this process,” the ministry said.

In 2015, the former Logistics Planning Company, or EPL, now Infra S.A., worked on the environmental licensing process for the northern section of the Ferroanel. The company was responsible for the Environmental Impact Study, the Environmental Impact Report, the process with São Paulo state environmental agency Cetesb to obtain the preliminary license, and the project’s engineering studies.

According to the company, the work was completed and submitted to the then Ministry of Infrastructure in the first half of 2019.

A future possibility

Brazil’s National Land Transport Agency, ANTT, said that if the federal government decides to move the project forward, the future Malha Oeste concessionaire would be responsible for developing and submitting the basic design for the railway section. The plan would then be reviewed by the granting authority and an independent verifier.

“If the parties sign the amendment for inclusion of the project, the concessionaire will become responsible for implementing and operating the sections. To do so, it must fully comply with the guidelines in the obligations and minimum technical specifications document applied to the line,” the agency said.

No immediate obligation

ANTT stressed that construction of the Ferroanel is not an automatic obligation under the Malha Oeste contract.

“At first, the concessionaire’s only duty is to deliver the study within 24 months. The execution of the works and the incorporation of the section into the concession will only become mandatory if the granting authority decides to carry out the project. That may happen only after the third year of the concession and provided all technical, contractual and financial conditions are met,” the agency said.

Source: A Tribuna

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