Rumo and ANTT renew Rumo’s Malha Paulista railroad concession
May, 27, 2020 Posted by Sylvia SchandertWeek 202023
On May 27th, the National Land Transport Agency (ANTT) signed a new contract with Rumo for the Malha Paulista railroad after four years of negotiations between the federal government, Rumo, and official organs, to enable early renewal.
Malha Paulista links grain-producing regions in the Midwest to the Port of Santos. The original contract, which would have expired in 2028, was renewed for another 30 years, through a series of measures that will use private resources to expand transport capacity, improve urban areas, generate jobs, and increase federal revenue. In grants alone, R$2.9 billion will be raised through the renewal.
The investments to be made by the concessionaire amount to more than R$6 billion in works, tracks, wagons, and locomotives and will be made throughout the concession. With this, Malha Paulista will increase its transport capacity from the current 35-75 million tons and may reach 100 million tons in the future.
The railway system is 1,989 kilometers long between Santa Fé do Sul/SP – on the border with Mato Grosso do Sul – and the Port of Santos. These railroads transport corn, soy, sugar, soy bran, alcohol, petroleum products, and containers.
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