Bahia Mineração S.A wins FIOL public auction

On April 8, ANTT (the national land transport agency) and MINFRA (the ministry of infrastructure) held the auction of the West-East Integration Railway (FIOL 1), on B3 (former BM & Fbovespa stock exchange), in São Paulo. The winner of the event was Bahia Mineração S.A (Corretora Itaú), with a bid of R$ 32,730,000.00. Only one proposal was submitted.

The winner will be responsible for completing the project and operating the stretch under a concession that will last for 35 years, totaling R$ 3.3 billion in investments. Of this total, R$ 1.6 billion will be used to complete the works, which are 80% completed. FIOL’s sub-concession will allow the creation of 55,000 direct, indirect, and income-effect jobs throughout the concession.

The expectation is that FIOL 1 will start operating in 2025 and transport more than 18 million tons of cargo between grains and especially the iron ore produced in the Caetité region. This volume is expected to more than double within ten years, surpassing 50 million tons by 2035. Other cargos include processed foods, cement, fuels, soybeans, soybean meal, manufactured goods, petrochemicals, and other minerals.

The initial operation should already have at least 16 locomotives and more than 1,400 wagons – at least 1,100 just to transport the iron ore. This amount can increase with further demand, reaching up to 34 locomotives and 2,600 wagons within ten years. In addition to Ilhéus and Caetité, a third patio will be installed in the municipality of Brumado. The FIOL 1 route will cross the following cities in Bahia: Ilhéus, Uruçuca, Aureliano Leal, Ubaitaba, Gongogi, Itagibá, Itagi, Jequié, Manoel Vitorino, Mirante, Tanhaçu, Aracatu, Brumado, Livramento de Nossa Senhora, Lagoa Real, Rio do Antônio , Ibiassucê and Caetité.

ANTT and the Federal Government are also working on projects for the concession of the other two sections: FIOL 2, between Caetité (BA) and Barreiras (BA), with works in progress, and FIOL 3, from Barreiras (BA) to Figueirópolis ( TO), which is awaiting an installation license from IBAMA. This flow corridor will have a 1,527-kilometer stretch of track and connect the port of Ilhéus, on the coast of Bahia, to the municipality of Figueirópolis (TO), where FIOL will connect with the North-South Railway and the rest of the country.

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