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Federal railroad project advances, but raises doubts

Aug, 09, 2021 Posted by Ruth Hollard

Week 202132

The extension of Rumo’s railway network in the State of Mato Grosso, recently launched by the state government, is not the only initiative of its kind in the sector.

Other states have passed laws and drafted proposals to make new local railroads viable. The movement, however, has generated some doubts about the legal security of the projects, possible conflicts with the federal government, and even about the economic viability of some of the initiatives.

The state of Minas Gerais has already mapped 40 possible railway stretches. Today, three routes are being prioritized: the Lavras-Varginha stretch; the Nova Lima-Rio Acima stretch; and the Ouro Preto-Mariana stretch.

Paraná has also advanced in this direction. The government recently approved legislation that will allow the construction of private lines in the state to increase the capillarity of Nova Ferroeste, a sub-concession that is being structured in partnership with the federal government. There is also the case of Pará, which plans to create a railway between Bom Jesus do Tocantins and Barcarena; the project, however, is still under study.

The discussion about state lines has gained prominence in recent weeks, with the project in Mato Grosso. The State opened a public call to build the extension of Rumo’s Malha Norte, which reaches Rondonópolis. The idea is to expand the route to Cuiabá and Lucas do Rio Verde, in a project worth R$ 12 billion.

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