Government authorizes first railroads under authorization regime

On September 9, the federal government authorized the construction and operation of the first nine stretches of railways under the new authorization regime – a model that contrasts with traditional railway concessions. The projects should pass through ten states, with an estimated investment of R$ 51.96 billion for 3500 kilometers of new tracks.

Six business groups received authorization: Bracell, Ferroeste, Grão Pará, Macro Desenvolvimento, Petrocity, and Planalto Piauí Participações. The Ministry of Infrastructure informed that only Ferroeste operates in the railway segment, as a concessionaire. The others are considered companies that will now mark their debut in the sector.

The new railway operators are linked to private-use terminals in ports or companies considered to own the cargo and which must use the new railway network to transport their own production.

The authorization contracts are part of the Pró-Trilhos program, created in September, which included the issuance of a provisional measure (MP) to institute a new legal framework for the sector. The government had informed that since the launch of the program, it has already received 36 proposals for new railway projects to be implemented exclusively with private investments under the new contractual regime.

These projects add up to 11,100 kilometers of new railway lines in 14 states, totaling more than R$ 150 billion in investments. Of this total, 17 projects have already been certified as feasible by ANTT (the national land-transport agency).

Source: Valor Econômico

To read the full original article, access the link: https://valor.globo.com/empresas/noticia/2021/12/10/governo-libera-primeiras-ferrovias-em-regime-de-autorizacao.ghtml

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