Brazil’s Transport Ministry approves EF-118 concession plan to advance Southeast Rail Ring

Brazil’s Ministry of Transport has published, in Tuesday’s edition of the Federal Official Gazette, the ordinance authorizing the concession plan for the EF-118 railway, known as the Southeast Rail Ring. The decision allows the concession process for the construction and operation of the line to move forward and reinforces the ministry’s commitment to modernising the rail network, boosting economic competitiveness and diversifying the country’s transport modes.

“The approval of the EF-118 concession plan symbolises the first greenfield concession in the history of Brazil’s infrastructure sector and marks the launch of the National Railway Concessions Policy. It represents a new public–private partnership model, under which the federal government provides funding to make the railway’s construction viable, ensuring the project’s economic and financial balance,” said Leonardo Ribeiro, national secretary for rail transport.

The approved concession plan covers, as its main section, the rail link between the municipalities of Santa Leopoldina, in Espírito Santo, and São João da Barra, in Rio de Janeiro, spanning approximately 246 kilometres. The project also provides for a potential expansion, under specific conditions, of the stretch between São João da Barra and Nova Iguaçu, incorporating existing segments of the EF-103 and adding a further 325 kilometres.

Strategic for the consolidation of a new rail axis in southeastern Brazil, the EF-118 will connect the Port of Açu, in Rio de Janeiro, to Espírito Santo, with potential integration into the existing rail network and links to other port complexes in the region, such as the ports of Ubu and Central. The project is expected to enhance cargo transport efficiency by strengthening connections between industrial areas, production hubs and ports.

“This is a structural project that reflects the Ministry of Transport’s efforts, through the National Secretariat for Rail Transport, to structure concessions for the development of new rail corridors, drawing on successful international experiences to attract private investment. The goal is to increase the share of rail transport in Brazil’s transport matrix,” Ribeiro added.

Designed to attract investments of R$6.6bn during the implementation phase, the railway is expected to incur operating costs of R$3.61bn over the concession period. The line will have the capacity to handle up to 24m tonnes per year, covering different cargo profiles, including general cargo, liquid bulk, agricultural dry bulk and minerals.

Following ministerial approval, the concession plan will be forwarded to Brazil’s land transport regulator, the National Land Transport Agency (ANTT).

Sharing is caring!