TCU reviews FCA railway concession renewal with R$24 billion investment plan

The final proposal for the early renewal of the FCA railway concession is awaiting review by Brazil’s audit court TCU before it can be ratified.

On July 30, Brazil’s National Land Transportation Agency (ANTT) sent the case to the audit court after approving the renewal. The adjusted concession plan provides for an estimated R$24 billion in investments over 30 years.

The procedure consolidates the review of the contract renewal proposal after the incorporation of technical adjustments and guidelines set by the Ministry of Transport under Ordinance 344/2026.

The approved proposal covers the operation of approximately 4,100 kilometers of railway sections and the return of about 3,100 kilometers of lines classified as having low operational viability. Under the proposed model, the federal government would receive an estimated R$4.2 billion in compensation.

The returned sections may be handled through other mechanisms allowed under Brazilian law, including railway authorizations, subject to the applicable procedures.

The proposal also sets aside 1% of capital investment for decarbonization and resilient infrastructure initiatives under the Carbono Zero program.

The FCA renewal is part of a broader set of federal efforts to modernize Brazil’s railway sector. With approval from ANTT’s collegiate board, the case now moves to TCU for review, following the steps required for this type of contract.

FCA currently spans approximately 7,220 kilometers and connects the states of Minas Gerais, São Paulo, Rio de Janeiro, Espírito Santo, Bahia, Sergipe and Goiás, as well as the Federal District.

With the early renewal and the return of uneconomic sections, the FCA network will total 5,469 kilometers.

Contacted for comment, the Ministry of Transport and ANTT did not provide further details on the process.

Source: A Tribuna

Sharing is caring!