Chamber of Deputies approves project; Legal Framework of Railroads goes to presidential sanction

On December 14, the National Congress finished processing the Legal Framework of Railroads, and it will now be sanctioned by the President of the Republic, Jair Bolsonaro. The Chamber of Deputies approved the proposal in the form of Bill 3754/21, without changes in relation to the text approved in early October by the senators.

The rule deals with new concession or authorization instruments and exploitation of railways in the private regime, at federal, state, and municipal levels, allowing the expansion of railway transport in the country. The main novelty is the possibility for private entities to design, build and operate new railways through the authorization regime – ventures 100% financed by private capital; that is, without the application of public resources. The model is the same as that adopted in European countries and the United States.

Balance

With the authorizations, Brazil takes a step towards balancing the national transport matrix by increasing the participation of the rail modal from the current 20% to more than 40% by 2035, as provided for in the National Logistics Plan (PNL). In the first 100 days of the Pro Trilhos program, 36 applications for new railways were presented. They represent 11,142 kilometers of tracks in 14 Brazilian states, with projected investments of R$ 150 billion.

After the delivery of the request by the private entity, the documentation and details of the proposal are checked by the SNTT (national land transport secretariat). An analysis will then be performed at ANTT (national land transport agency) of the project’s compatibility with the current rail network (conceded or granted). Another assessment, again by SNTT, will be performed on the undertaking’s compliance with the public sector and national transport policies.

Once the procedure is completed, the new railway can be authorized.

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