ANTAQ supports the hiring of companies to manage railroad in the Port of Santos

ANTAQ supports SPA hiring companies to manage the Port of Santos’ Internal Railroad (FIPS in Portuguese). During the Ordinary Board Meeting on February 3rd, the Agency deliberated on the technical and legal documents related to the proposal, as well as FIPS’s maintenance and expansion.

SPA has already carried out the public call aimed to identify railway operators interested in becoming shareholder users and entering into an Assignment Agreement for FIPS operation. Furthermore, a required periodic public call is foreseen, providing opportunities for the entry of future interested parties. Right now, the Federal Audit Court (Tribunal de Contas da União – TCU) is analyzing the process.

The initial investment will be R$ 992 million and should be continuous throughout the contractual term (35 years) to ensure adequate rail service. Portofer Transporte Ferroviário Ltda currently operates the internal rail network of the Port of Santos under a contract that expires in 2025.

Minimum investments include works on railway infrastructure (such as soil treatment and earthworks), railway superstructure (rails, gravel, and fastening components), works on road-railway conflicts, signs, control centers, and walkways.

According to the SPA, due to investments in the Santos network and the overall extension of the upstream rail concessions, cargo transportation by rail increased from approximately five million tons in 2000 to approximately 48.2 million tons in 2020.

The government’s railway-encouraging policy, based on measures such as the implementation of new concessions and the early renewal of concession contracts subject to the realization of new investments, will result in an increase in demand of approximately 50 million tons between 2030 and 2040.

ANTAQ and ANTT: Port of Santos Railroad

The two regulatory agencies will collaborate to monitor how FIPS is managed. The National Land Transport Agency (ANTT) and ANTAQ will be in charge of monitoring the progress of the new operational management of cargo flow by the Port of Santos railroad.

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