São Paulo state to incentivize private participation in railroad shortlines

A logistics solution guaranteed in State Law 17.612/2022, the railroad projects of short stretches, the so-called shortlines, will be part of the Logistics and Investment Plan of the state of São Paulo. Under the responsibility of the State Secretariat of Environment, Infrastructure, and Logistics (Semil), the plan will be completed in 2025. The shortlines will facilitate the flow of cargo from the production centers to the Port of Santos.

The new legislation provides for the Railway Subsystem of the State of São Paulo (SFE/SP), organizing the railway transport of cargo and passengers, the use of the railway infrastructure, and the types of concession for the indirect exploration of railroads in the State. The State Railway Department is being formed and will regulate the shortlines and stipulate the exploration of short stretches by means of special authorization, concession, or public-private partnership (PPP).

In relation to the Logistics and Investment Plan, Semil stated that it should be put into action in the second half of this year. “One of the guidelines of the plan will be the search for balance in the state’s transport matrix, with less weight on roads and greater participation of waterways and railways.

The folder also informed that “the scope of the plan includes a detailed survey of the rail network and the identification of idle sections and bottlenecks. Market studies will also be carried out to estimate the potential demand for the various segments of São Paulo’s railway system, for the creation of an action plan and the definition of priorities in this sector”.

According to Semil, based on the demand studies and on the estimate of necessary investments and the respective operating costs of the stretches, models for making the projects and private participation feasible will be proposed.

Sought for comment, the state deputy that represents the Santos region in the state legislature Solange Freitas mentioned that the railroad sector is lagging when it comes to infrastructure and irrigation of the railroad network. “The viability of short rail lines that enable new private initiative players, to fund railroad branches that can interconnect the concessions that already exist, will facilitate access to the Port of Santos and bring development to the sector.”

Source: A Tribuna

To read the original story, access: https://www.atribuna.com.br/noticias/portomar/shortlines-ferroviarias-sao-incluidas-em-plano-de-logistica-de-sp

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