The Brazilian government will double the expansion goal for the railway network to reduce transport costs and expand the product competitiveness in the country.
The affirmation was made by the Secretary of the Minister of Transport, Paulo Sergio Passos.
The plan is to build 10 thousand kilometers of railways until 2020, said Passos in an interview in Brasilia. There will be five thousand kilometers more than the initial project, which predicts investments of US$ 10.04 million.
More than half of the freight transportation in Brazil, the second biggest exporter of soybeans and iron ore in the world, goes by trucks, which its tax costs, on average, four times more than rail.
The National Plan of Infrastructure and Logistics objective, formulated by the minister of transport and defense, is to increase the rail participation on the movement of cargo on the country from 25% to 32% by 2025.
“For a high competitive economy, it is necessary to secure the disposal of increasing production of grain, ore, fertilizer and fuel”, affirmed Passos.
Until the end of the semester, the government will launch new concession rules for the tracing that are expected for bidding, said Passos. The actual contracts will not be altered.
Besides expanding the existing rail network, the government wants to force companies to increase the use of 28 thousand kilometers in operation today, said Passos.
From the total of the network, only 10 thousand kilometers are operated intensively.
The government wants to negotiate to resume stretches that do not meet the performance criteria and are underutilized, said Passos.
In Brazil, the average cost to transport a freight ton by a thousand kilometers is US$ 117 on the road and US$ 27 on the railroad, according to the estimates of Mauricio Lima, CEO of the Instituto de Logistica e Supply Chain, which provides consulting in logistics.
According to the National Association of Railway Transports (ANTF), companies like Vale, MRS Logistica, MMX Mineração e Metálicos SA, Transnordestina Logística and ALL America Latina Logistica SA are the one which have railway concessions in Brazil.
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