Brazil’s Transnordestina Logistica to invest US$1.27bn to complete rail project

Transnordestina Logística (TLSA) will invest an additional 7 billion reais (US$1.27 billion) to complete the construction of the Transnordestina freight railroad in Brazil’s northeast region.

Controlled by the Brazilian CSN steel group, TLSA has already invested 8 billion reais in the project and has funding support from the federal government.

“The funding has been negotiated in advance, in order to guarantee compliance with the deadlines agreed with the federal government. These negotiations guarantee funds to support disbursements in 2025, 2026 and 2027, ensuring the completion of phase I in 2027,” the company said in an emailed statement to BNamericas.

The project was launched in 2006 during the first term of President Luiz Inácio Lula da Silva and was expected to be completed in 2010. However, it suffered multiple postponements due to a lack of federal funding.

The Transnordestina system is part of a chain involving engineering and services companies with lots divided into sections of 50km each and involving significant investments from several parties.

“Around 150km of infrastructure works are in progress on lots 4, 5 and 6 in Ceará state’s Missão Velha-Pecém stretch. This leaves 230km for the railway to reach the port of Pecém,” the company said, adding that it also plans complementary works on lots 3 and 4 of the Eliseu Martins-Trindade section, in Piauí state.

Some 673km of the system’s total of 1,206km have been completed. It consists of a main line that runs from Eliseu Martins in Piauí to Salgueiro in Pernambuco state, with branch lines that lead to Pecém port in Ceará and Suape port in Pernambuco.

SUBWAY WORKS

Minas Gerais authorized the start of the expansion works for the subway in state capital Belo Horizonte.

The subway is operated by Metrô BH, which is controlled by bus company Comporte Participações after it won the privatization auction at end-2022 of state rail firm CBTU. As a result, Metrô BH assumed the concession contract to operate the subway for 30 years.

“We’re talking about 10.5km, more than 3bn reais in investments, seven [new] stations, plus 24 trains that have already been acquired,” said state governor Romeu Zema in a statement.

Works on the stations will be completed in stages, according to a previously established schedule, starting with the Nova Suíça and Amazonas stations, to be concluded in 2026. The opening of line No. 2 is scheduled for 2028.

Once the new line is completed, the expectation is that the Belo Horizonte subway will transport a daily average of 213,000 passengers, 157,000 on line No. 1 and 56,000 on line No. 2.

Metrô BH will also make improvements to line No. 1, such as completing expansion works and renovations of the 19 stations, both scheduled to be finished by 2026.

Source: BN Americas

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