A billion-real investment in railways is expected to double the cargo arriving at the Port of Santos

With an investment of R$3.8 billion in the Malha Sudeste (Southeast Rail Network), the flow of cargo to the Santos quay is expected to increase in the coming decades. According to the Santos Port Authority (APS), the goal is to boost the rail-transported cargo capacity by 45 million tonnes over 20 years, effectively doubling current levels.

Malha Sudeste, one of Brazil’s main freight railway networks, connects the states of Minas Gerais, Rio de Janeiro, and São Paulo to the ports of Santos and Itaguaí (RJ). The concession contract for the Southeast Network was renegotiated with concessionaire MRS and signed on the 18th, at the Federal Court of Accounts (TCU).

The multibillion-real investment will be directed toward improving operational efficiency and freight transport along the corridor. The formalization of the agreement stems from a consensus solution approved by the TCU, involving the Ministry of Transport, the National Land Transport Agency (ANTT), the National Association of Rail Transporters (ANTF), and MRS Logística.

The renegotiation adds about R$2.8 billion in concession fees to be paid by the operator, contributing to contractual rebalancing and to the execution of the investment plan. MRS did not comment when contacted.

Port of Santos

In a statement, APS said that expanding the rail network had already been included in the Port of Santos’ long-term development plan. To support the increased cargo demand, APS transferred control of the Port of Santos Internal Railway (Fips) about two years ago.

“The goal is to meet the forecast outlined in the Port of Santos Development and Zoning Plan (PDZ), which projects an increase of around 45 million tonnes in rail-transported cargo over the next 20 years (from the current 45 million to approximately 90 million), raising the rail mode’s share in port throughput from 33% to 40%,” the note says.

In addition to strengthening the internal rail network, APS says it has submitted to the Federal Government a proposal to expand the Organized Port area, which would increase the port area by up to 164% in the coming decades — from the current 7.8 million square meters of dry operational area to more than 20 million m², expanding into Cubatão, São Vicente, and Bertioga, in addition to Santos and Guarujá.

According to APS, once offered to the market, these areas could accommodate growing cargo volumes and support the country’s economic development.

Terminals must invest at the same pace

Port consultant Ivam Jardim, director at Agência Porto Consultoria, says modernization by terminal operators is critical for the rail mode to gain market share and for the Port of Santos to operate at a higher performance level.

He cites the grain sector as an example, referencing a terminal that built a new rail yard designed to receive larger train sets, increasing operational capacity. “This expansion allows for higher train turnover, regular flow, and reduced dwell time on the tracks,” Jardim says.

He also highlights recent works in the pulp sector, which now support more rail lines and enable the simultaneous arrival of longer and heavier trains, expanding the operators’ rail window.

The consultant explains that modernization is also advancing in the export corridor. According to him, some terminals have invested in modern rail-receiving systems, “notably equipment capable of moving wagons to the hoppers — funnel-shaped structures that receive and transfer bulk solids — and then guiding empty wagons to return tracks, increasing productivity and eliminating shunting bottlenecks.”

A vital rail network

Port consultant Rodrigo Paiva, of Graf Infra Consulting, says that without new investments, the rail mode would reach its limit in the short term, as utilization rates already exceed 90%.

“Investments in the Southeast Network tend to eliminate pre-port rail bottlenecks, especially in areas with urban conflicts, operational improvements, new yards, and fleet renewal. These investments are essential,” Paiva says.

Source: A Tribuna

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