Port of Santos’ Internal Railway goes under new management in June

The new transferee of the Internal Railway of the Port of Santos (Fips in Portuguese), a joint venture formed by sector giants VLI, MRS, and Rumo, should take over the management of the rail network in June, after the completion of al the rites called for in the bidding call opened by the Santos Port Authority (SPA).

The assignment agreement between the approved companies and the Port Authority was signed on Dec 16.

As per the agreed-upon deadlines, the three companies have until Feb 16 (60 days) to deliver the documents necessary before the constitution of the assignee group. In turn, SPA must analyze the documentation within 25 days until Mar 10.

Transition

Once the transferee is formed, the Operational Transition Plan (PTO) will begin, an assisted operation involving the new association, Portofer, and SPA, with a maximum implementation period of 90 days until June 10th.

The assignee will be responsible for the management, operation, maintenance, and expansion of the railroad that serves the Santos port complex and will receive a total investment of R$ 891 million within a maximum period of five years, to expand the local rail capacity, which verge of saturation.

Expansion

According to SPA, the railway network’s current capacity is 50 million tonnes per year, with a 94% utilization rate, which necessitates an immediate expansion to 115 million tonnes per year, based on the conceptual projects established in the model.

In order to do that, the new assignee will build a railway yard between Channel 4 and Ponta da Praia, equipped with three railway tracks connected to the pulp terminals; viaducts to eliminate level crossings in the Channel 4 region-Navy; pedestrian walkways between Channel 4 and Ponta da Praia, a balloon loop; two viaducts and pedestrian walkways in the Outerinhos region; and a new road for a second entrance on the right bank of the Port of Santos, in Saboó.

Source: A Tribuna

To read the full original article, please access: https://www.atribuna.com.br/noticias/portomar/nova-gestao-da-ferrovia-interna-do-porto-de-santos-assume-em-junho

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