Railroad construction in Brazil: what are the new investments?

Historically, Brazilian railroads have always been very important for the development of the regions. The use of railroad lines as a means of transporting products and materials obtained in several areas made it possible to advance in several sectors, such as agriculture and mineral exploration. Unfortunately, Brazil has had some problems with the use of railroad lines for a long time, which caused a good part of the railroads to be abandoned, mainly damaging the structures of the trains. 

In recent years, the government and several companies have again invested heavily in the construction of railroads in Brazil, the revitalization of lines and the development of rail transport. According to notes, the railroad concessionaires have already invested around 50 billion reais in the last two decades until mid-2015, for the structuring and construction of railroads in Brazil. The prospect of public funds destined for this sector, according to the Ministry of Infrastructure, released at the beginning of the year, is around 30 billion reais for the coming years.

The increase in recent investment in railroads is essential for the improvement of this important means of transport that favors both people and goods. But, do you know what these new investments are and how they are being applied? 

From now on, we will discuss the possibilities that trains can offer again, identifying where investments are made and how they have the power to change the perspective of railroad construction in Brazil. 

Why invest?

Before talking directly about new railroad constructions, it is important to understand why there is a considerable increase in investments in railroad construction in Brazil. 

The railroad sector was once the main means of transport and supply in several regions. But, as time went by, new possibilities emerged that also became attractive, such as the massive use of the road sector. The change from the railroad to the road has led to a fall in new investments made in this sector and, consequently, the abandonment of a large amount of railroad lines. According to data from the National Association of Railroad Transporters (ANTF), currently, only 15% of cargo transports are carried out on the railroads - a percentage that is much lower than the data recorded in other more developed countries.

In order to reach levels of development in countries called the “first world”, returning to invest in the rail sector has become a necessity, and governments are more aware of this goal. In addition, rail transport vehicles, which are trains, have a number of advantages over other cargo handling vehicles, such as trucks. Discover some of these advantages:

• Greater load in a single vehicle;
• Faster transportation;
• More effective control of activities during the journeys;
• Environmental benefits.

The intention to make new investments in the construction of railroads in Brazil aims at the total expansion of the size of the Brazilian railroad line and, consequently, the increase in the percentage of cargo transported by this sector. Some works are already underway and can be seen in different regions of Brazil. Find out now which are these new works that are in progress and others that are in an advanced planning phase and about to leave the paper!

Fico(East-West Integration Railway)

The construction of railroads in Brazil aims to provide the connection between the different regions, through a route built by finishes such as railroad ties and rails, which allow trains to traverse the route quickly and safely.

Thinking about increasing productivity and transporting larger quantities of cargo, there is an ongoing plan for the construction of a new railroad line in the east-west integration, going from a section of Tocantins to Bahia, passing through several cities, and having as destination points Figueirópolis (TO) and Ilhéus (BA).

The length of this route will be around 1500 km, divided into parts of mileage that will be put up for auction. It is estimated that a portion, around 500 km, will be available for auction later this year 2020. 

Ferroeste

The new railroad construction project in Brazil aims to create a line that goes from Dourados (MS) to Paranaguá in the state of Paraná.

The construction of this new line is of paramount importance for these regions, since the state of Paraná is an important agricultural hub for the country. According to data from 2019, from the National Supply Company (CONAB), soybean production in the state of Paraná reached the mark of 16.253 million tons, about 14% of all soybeans produced in Brazil. In addition, Paraná and Mato Grosso do Sul, states that will be interconnected by the railroad, have significant importance in the livestock sector, since they have extensive sections dedicated to herds.

The importance of building a new railroad network in this region is mainly due to the need to modernize the railroad structures and the trains themselves. In Paraná, currently, the main form of supplying cargo is made by trucks, which represent about 80% of all transport. This data is extremely problematic, since this type of vehicle is polluting and much slower than trains, reducing transport efficiency.

Fico(Railway of integration of the middle west)

Fico is a rail network creation project that is in force and undergoes constant changes in transfers. This railroad is expected to reach around 1600 km, serving mainly for the flow of grain production in the central regions of Brazil, connecting the state of Goiânia to Rondônia. 

The main incentive for the construction of railroads like this in Brazil is the possibility of transporting cargo to port users. The construction of Fico aims to take the grains that are produced in the Midwest region to the port of Vilhena (RO). 

Ferrogrão

Finally, we will talk about the Ferrogrão railroad planning. The projection addressed for this line is that its extension is about 933 km, connecting the state of Mato Grosso to the port of the city of Miritituba (PA). 

This project is the most expensive among those mentioned, and may require an investment of around 12.7 billion reais for the construction to be carried out. Therefore, the concession of the stretches that will be auctioned will be longer, seeking to reach the necessary value for the construction. The purpose of the line is also to allow the flow of grain production in the Midwest states of the country.

Conclusion sobre investir em construção de ferrovias no Brasil

As we saw throughout the article, it is important that there are railroad lines for the transportation of cargo in the main producing regions in Brazil, as this option has numerous advantages over other means of cargo transportation. We could see that, after a long period of recession and oblivion, the railroads are beginning to receive more consistent investments, both by private companies and by the public sector, in several Brazilian regions.
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