The Brazilian federal government plans to invest US$ 40 billion by 2015 through the GAP (Growing Acceleration Program) in rail transport, expanding the network of 28 thousand kilometers to 35 thousand kilometers. Moreover, by 2023, investment in sector projects should reach US$ 81 billion, more than half of all planned for the Brazilian transportation.
“The railroads have been forgotten and therefore not kept pace with the growth of the country,” notes Sergio Passos, executive secretary of the Ministry of Transport. Compared to emerging countries, Brazil has less than half of China railroads and six times less than India.
The government’s goal is to make the railways the main means of transporting freight in the country. Today, the roads represent 58% of the total, against 21% of the railroads. Transport by rail can be up to 30% cheaper and more efficient than paved roads, just as in a freight car loads nearly ten times more than a truck.
Check out some numbers of rails in the country:
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I. US$ 40 billion must be invested by the GAP until 2015, expanding the rail network of 28 thousand kilometers to 35 thousand kilometers.
II. Until 2023, US$ 81 billion must be invested in sector projects through the National Logistics and Transport (PNLT), more than half the US$ 157 billion estimated for the Brazilian transportation.
III. With this, the railway could again be the key in Brazil, with 35% against 30% of road transport. Today that proportion is 58% to 21%.
IV. Of the 28 thousand km of railways, 3 thousand km are fully occupied, 7 thousand km are below capacity and 18 thousand km are underutilized.
V. Projects aimed at expansion of 17 thousand km of railways are already being studied as 5 thousand kilometers are already underway or go out for bid in the coming months.
VI. Transport by rail is cheaper (30%) and efficient (each freight car carries nearly ten times more than a truck) than by road.
VII. Proportionally, Brazil has less than half km of China railways, six times less than India and seven times less than the U.S.
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