Other Logistics

Federal Government signs railroad contract for R$3.3 billion in private investments

Sep, 03, 2021 Posted by Ruth Hollard

Week 202135

The federal government signed the contract with Bamin (Bahia Mineração S/A) in Tanhaçu (BA) on September 3, for the concession of FIOL (the west-east integration railway), referring to the stretch between Ilhéus and Caetité, for a period of 35 years.

Auctioned in April, FIOLl 1 will receive private investments of R$3.3 billion, of which around R$1.6 billion will be used to complete the 537-kilometer segment which is  75% completed. The federal government is advancing in sections 2 and 3. When it is ready, FIOL will be an outflow corridor with 1,527 kilometers of rails, connecting the future port of Ilhéus, on the coast of Bahia, to the municipality of Figueirópolis, in Tocantins, where it will connect with the north-south railway and the rest of the country.

Operation – FIOL1 is expected to start operating in 2025, transporting more than 18 million tons of cargo. Initially, 16 locomotives and 1,400 wagons will be in operation, of which at least 1,100 will be used to transport iron ore. In 10 years, the volume of cargo is expected to more than double, surpassing 50 million tons by 2035, reaching 34 locomotives and 2,600 wagons.

The federal government is also working to implement two other stretches: there is ongoing work at FIOL 2, the 485.4 kilometer stretch between Caetité and Barreiras, for which the army helped execute, and Fiol 3, from Barriers to Figueirópolis (TO), which is awaiting installation license.

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