Setor Ferroviário

Understand more about Brazilian railroad legislation

Laws are in force in everyone's daily lives, whether with stricter laws or rules to be followed routinely. For the railroad system in Brazil, the existence of a Brazilian railroad legislation is fundamental for the control and regulation of the sector's operation in the country.

Naturally, as well as the maximum laws of the country, the Brazilian railroad legislation has undergone major changes since the implementation of the first railroad in the country, in the mid-1850s. 

Currently, the regulation of the railroad system is managed by ANTT (National Land Transport Agency), which is the agency responsible for observing, managing and inspecting the performance of railroads in Brazil.

The concept of railroad regulation is divided into two points: Administrative activity (discipline, regulation, inspection and control of the service) and Competence assigned by law (search for service adequacy, respect for tariff rules, harmonization, scale and the composition of interests).

Next, we will see everything about the regulation of service, rail transport, rail concessions and the new regulatory framework for railroads.

Content Index

Brazilian Railroad Legislation: Service Regulation

regulação da lei

As we said, the railroad legislation has undergone a lot of changes throughout the existence of the segment in the country. For most of the 20th century, for example, the railroads were entirely managed by the national government, but due to legislative changes, the private sector began to have an influence in the sector from the 90s onwards.

Despite this, the state's duties in relation to the railroads still deserve to be highlighted, since the Brazilian state is still one of the main responsible for the inspection and organization of the railroads.

ANTT, for example, is an agency that was created and developed precisely to administer the Brazilian railroad legislation, founded in 2001. As an agency developed and organized by the country's governmental spheres, the objectives outlined by ANTT refer directly to the functions and state objectives in relation to railroads.

According to the article of Law 10,233/01, the main objectives of the National Land Transport Agency in relation to the Brazilian railroad legislation are:

  1. Implement, in their respective sphere of action, the policies formulated by CONIT and by the Ministry of Transport, according to the principles and guidelines established in the aforementioned Law;
  2. Regulate or supervise, in their respective sphere and attributions, the activities of provision of services and exploration of infrastructure , carried out by third parties, with a view to:
  3. Ensure the movement of people and goods, in compliance with standards of efficiency, safety, comfort, regularity, punctuality and reasonableness in freight and rates;
  4. Harmonize, while preserving the public interest, the objectives of users, concessionaires, licensees, authorized and lessees, and delegated entities, arbitrating conflicts of interest and preventing situations that configure imperfect competition or infringement of the economic order.

Also, ANTT has important attributions that need to be fulfilled for the agency to be able to achieve this goal, such as publishing notices, administering railroad concession contracts, judging bids, inspecting, regulating and condemning the performance of concessionaires, contributing to the preservation of historical heritage, among others.

Rail Transport Regulation

legislação ferroviária brasileira

But what is the use of rail transport regulations in fact? Well, as in most spaces, sectors of activity and processes, the Brazilian railroad legislation, exercised by ANTT, serves to discipline the relations between the administration of railroad concessions and the government, and mainly to increasingly improve railroad safety..

The aspect of safety, for example, is one of the most discussed topics, as it is a fundamental aspect for the railroads to remain in operation, qualifying the transport segment in general.

To ensure that the roads are safe, ANTT is tasked with preparing reports, observing the numbers of accidents, what ways companies and the government have to increase protection for road workers, among other important matters.

In addition to actually inspecting and observing whether the tracks are safe for professionals who work on the trains and in the maintenance of the railroads, the agency must understand whether the surroundings where the tracks that were built or will be developed can be raised with the necessary safety for the people who live and move in the vicinity.

It is precisely for this reason that, for a railroad to be established, there is a long and bureaucratic process, since it is essential that this process is carried out in the best possible way for the companies involved.

Legislation of Brazilian railroad concessions

legislação das concessões

To talk about Brazilian railroad legislation, it is impossible not to list legislation on railroad concessions. Concessions are part of the formation of the current rail system, and shape how the Brazilian rail system is distributed.

The beginning of concessions took place in the 1990s, as the privatization program of public attributions took on large proportions. Since then, national railroad lines have been destined for private companies through public concessions. 

Concessions are granted by the government through an auction. The company that obtains the highest value in the auction starts to manage the destined railroad line during a period previously agreed. 

In this way, the government no longer actually manages the roads, and this task is left to the companies that obtain the concessions. Tasks such as construction of new trains, route management, maintenance, track development, among others, become exclusive to companies during this period.

However, ANTT continues to have the functions of administering the Brazilian railroad legislation, observing closely how the companies' attributions are, if accidents are happening, if maintenance is being carried out in the necessary manner, etc.

New regulatory framework for railroads

trem em ferrovia

In addition to the changes that have already taken place in the railroad system to date, such as the privatization of the tracks and the concession program, there are new ideas that are being designed and implemented to develop and modify the structure of the national railroad system.

This is the case, for example, with the legal framework for railroads. This project (PLS 261/2018), presented by senator José Serra (PSDB-SP), has as its main objective to allow private companies not to depend on the government to build and manage national railroads. 

In other words, the idea is that the project will reduce bureaucracy, removing the government's dependence on building roads, executing auctions and delegating concessions to private companies.

This model is already used by other countries in the world, such as the United States, which allows private companies not only to build new railroads, but to operate with freedom so that the railroads can be expanded, naturally following the rules established by the Brazilian railroad legislation, essentially in relation to security.

The measure would also allow the use of roads that are abandoned or inactivated due to lack of investment. The legal framework for railroads is contained in Provisional Measure 1.065/2021, signed by President Jair Bolsonaro on August 30, 2021.

Conclusion: Brazilian railroad legislation

As we have seen, the Brazilian railroad legislation has been significantly modified over time. Currently, the railroad system lives in a system of public concessions, in which companies acquire concessions through auctions promoted by the government. However, the legal framework for railroads, signed by the president in August this year, aims to modify this model, which would in fact alter the regulation of the sector. 

Searchs:

https://www2.camara.leg.br/legin/fed/decret/1980-1987/decreto-90959-14-fevereiro-1985-441115-regulamento-pe.doc

https://www.gov.br/pt-br/noticias/transito-e-transportes/2021/09/nova-legislacao-para-ferrovias-busca-atrair-investimentos-privados-para-o-setor

https://www.guialog.com.br/legislacao-ferroviario.htm

http://www.civil.ita.br/graduacao/disciplinas/extras/civ-32_2011_ANTF_Ellen_Martins.pdf

https://www12.senado.leg.br/noticias/materias/2020/11/17/novo-marco-regulatorio-para-ferrovias-pode-ser-votado-em-breve-no-plenario

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