Brazil’s Sudene Approves Multi-Billion Credit for Key Transnordestina Railway Project

The Brazilian government’s Sudene—Superintendency for the Development of the Northeast—has authorized the Northeast Bank to sign an addendum with Transnordestina Logística (TLSA) to finalize the Transnordestina Railway, which will connect the city of Eliseu Martins to the Pecém Industrial Port Complex.

In a meeting held Tuesday (5th), the Autarchy’s Board of Directors, linked to the Ministry of Integration and Regional Development, approved a R$3.6 billion credit line for the concession-holder via the Northeast Development Fund (FDNE).

The railway is among the largest infrastructure projects underway in Brazil. Since construction began, R$7.5 billion has been invested, with R$3.8 billion from the FDNE. According to TLSA, an additional R$7 billion will be required to complete the project.

New funding for the project was secured through a collaboration led by the Federal Government with the Chief of Staff Office, MIDR, Sudene, BNB (the regional fund operator), the Federal Audit Court, and other financial institutions.

Sudene’s superintendent, Danilo Cabral, noted that authorizing the addendum is part of the Federal Government’s push for the concessionaire to complete the project by 2027.

“We aim to make rail transport policy effective—seeing freight trains traversing the Northeast’s hinterlands, integrating production chains with the Ports of Pecém and Suape while driving regional development and generating jobs and income for the people of the Northeast,” he stated.

According to TLSA’s documentation reviewed for the addendum, the Transnordestina Railway is slated for completion by 2028, though some sections will be operational by the previous year. With the funds from the approved addendum, infrastructure and superstructure work will proceed on the MVP segment (between Missão Velha and the Port of Pecém) and EMT segment (Eliseu Martins to Trindade).

The last FDNE disbursement for Transnordestina was R$811 million, issued in October last year. The railway is considered essential for Northeast development and is a top priority for the Federal Government as part of the New PAC. Sudene’s Director of Funds and Incentives, Heitor Freire, emphasized the project’s over 1,200 km span through 53 municipalities in Piauí, Ceará, and Pernambuco, employing 10,000 workers. The railway will enable production flows and reduce logistics costs, making it Brazil’s largest ongoing project and a driver of socioeconomic growth across the region. It will transport minerals, fertilizers, grains, and fuel. “This is an infrastructure project with the power to transform Ceará’s economy and the entire region, pushing our growth forward,” he added.

The Salgueiro-to-Port of Suape stretch in Pernambuco was removed from TLSA’s concession on December 23, 2022, when the company signed its first contract addendum with the National Land Transport Agency (ANTT). The Pernambuco rail project, valued at R$4 billion, is also part of the New PAC. This year, in September, Infra S.A., a public company under the Ministry of Transport, signed a R$15.2 million contract with the Estratégica-Prosul Consortium to prepare the basic and executive project for the greenfield segment of the development.

Soure: Folha de Pernambuco

Click here to read the original news report: https://www.folhape.com.br/colunistas/blogdafolha/sudene-autoriza-aditivo-para-conclusao-do-trecho-ate-porto-de-pecem-da-transnordestina/47470/

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