ANTT signs contracts that facilitate investments of over R$17bn in next 30 years

On December 18th, in São Paulo, the amendment to the concession contracts for the Vitória-Minas Railway and the Carajás Railway, both managed by Vale S / A, were signed between ANTT, the national land transport agency, and the concessionaire. The Minister of Infrastructure, Tarcísio Gomes de Freitas, attended the event. The conditions of the contract foresee investments of more than R$ 17 billion over the next 30 years in addition to R$ 4.6 billion in grants.

As a result of the negotiations between the government and Vale, part of the EFVM grant will enable the construction of the Central-West Integration Railway (FICO), between Mara Rosa, GO and Água Boa, MT. The new stretch will allow the flow of grain production from the Araguaia Valley to the North-South Railway.

The contractual amendments provide for the possibility of cross-investment in a project of interest to the public administration, the elimination of urban conflicts, mechanisms to discourage contractual non-performance, a guarantee of sharing the railway network, and the definition of new performance parameters. It is estimated that 283,000 jobs – between direct, indirect, and income effect – should be generated over the next 30 years from investments in railroads.

“Cross-investment, based on the use of grant resources, will double the participation of this modal in the country’s transport matrix”, said Tarcísio de Freitas, on the construction of FICO. “In retrospect, we thought of everything. It took several stages – three years of concentrated efforts – to reach today. We are taking the biggest step in our railway’s history, a giant step towards the development of this mode of transport in Brazil”, said the Minister of Infrastructure.

The implementation of the works for the Central-West Integration Railway will take place through cross-investment as a counterpart for the early extension of the Vitoria-Minas Railway. Approximately R$ 2.73 billion of the grant amount to be paid to the federal government by Vale will be invested by the company in the construction of FICO. The 383-km stretch, to be granted to the private sector when completed, will connect the municipalities of Maria Rosa, GO (connection with the North-South Railway) and Água Boa, MT and will be a fast, safe, and economical alternative for the flow of grain production, especially soybeans and beans.

EFVM is located between the states of Minas Gerais and Espírito Santo, totaling 895 km of mixed-gauge railway. In addition to being used to transport iron ore, the railroad is also used to transport coal, steel, limestone, granite, containers, pig iron, agricultural products, wood, cellulose, fuels, and various cargo from Minas Gerais to the Tubarão Port Complex, the Vila Velha Terminal, the Paul Pier, Codesa, and the Barra do Riacho Port, in Aracruz, Espírito Santo. In addition to the construction of FICO, the new contract provides R$ 8.8 billion in investments in Vitória-Minas.

The EFC is located between the states of Pará and Maranhão, connecting the largest open-pit iron mine in the world, in Carajás, PA, to the Port of Ponta Madeira, in São Luís, MA, totaling 892 km of wide-gauge railway line. The main goods handled are iron ore, mineral bulk, and fuels. With the new contract, Vale will be investing R$ 8.2 billion.

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