Valec rebids works missing for the North-South Railroad

Valec promises to end the embarrassment of Ferrovia Norte-Sul (North-South Railroad) by December of this year, as the Chairman of the state-owned company, Josias Cavalcanti,  assures the 855-km-long section between the cities of Palmas (TO) and Anápolis (GO) will be ready for operation at such time. Four bids have been just launched to solve the remaining works of the railroad. In order to buy time, Valec has opted for the Differentiated Contracting Regime (RDC), a model which overcomes the traditional stages of the bidding ritual and promises a faster result. One of the proposals has already been opened and the contract was signed in February. It is expected the other three contracts will be signed yet this month for the works to start effectively in May, when the rainfall period ends. The section would already have 88% of its works ready.


We have faced problems directly. It is true there are some pending issues to be settled, but we are working to manage this situation as soon as possible, Cavalcanti said.


The challenges do not end in the section up to Anápolis. The South extension of the railroad, which connects Ouro Verde de Goiás (GO) to Estrela D’Oeste (SP), already is undergoing works, but its execution depends on the acquisition of rails. The material Valec had in stock is depleted. For two years, the state-owned company tries unsuccessfully to acquire the steel ingots it needs to line this new track, but the international bidding is stuck into technical issues and court fights. Now there is no forecast on when Valec will be able to purchase the rails. Brazil, one of the biggest producers of iron ore in the world, does not produce this kind of material.

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