BRAZIL: National Land Transport Agency ANTT is to reopen public hearings into the early renewal of the Ferrovia Centro Atlântica operating concession for the 7 857 km Malha Centro-Leste network.
Initial hearings had taken place with ANTT in February 2021, and further hearings are now scheduled to take place at various locations served by the railway from September 30 to October 7. Written contributions may be submitted by October 14.
The decision follows the implementation of fresh public policy guidelines ’that required adjustments to the studies and legal documents initially submitted for public consultation in 2021’.
FCA is controlled by Vale Logística Integrada, and the current 30-year contract to run the FCA network is due to expire in August 2026. VLI is seeking to extend the contract for another 30 years, in return for which it proposes to invest R$24bn in the 1 000 mm gauge network. It has also put forward a proposal to spend R$5bn in grants and compensation for returning around 2 000 km of disused lines to government control.
About half of the R$24bn would be earmarked for track upgrades and infrastructure improvements, including bridges, viaducts and footbridges to segregate the railway in urban areas; work will also be needed to deal with the impact of expansion of the metro in Belo Horizonte. The rest is due to be spent on motive power and other rolling stock; FCA currently has a fleet of over 27 000 wagons and around 560 locomotives.
Much of the infrastructure work would be concentrated on the southeastern corridor from Uberaba in Minas Gerais towards Santos in São Paulo state. Funds would also be earmarked for the corridor from Araguari to Belo Horizonte, where connection is made with the Estrada de Ferro Vitória a Minas. Both routes handle heavy flows of grain, as well as fertilisers and a range of other agricultural and industrial products.
ANTT is expected to submit its report on renewal of the FCA concession to the Federal Audit Court by the end of 2024, paving the way for signature of the concession during the first three months of 2026.
ANTT Director Guilherme Sampaio and project rapporteur said that ‘reopening of this public hearing reflects ANTT’s and FCA’s commitment to transparency and society’s involvement in the contract renewal process, ensuring that interested parties have the opportunity to contribute and learn about the proposed developments for the concession that extends across several regions of Brazil’.
Sampaio told Brazilian media outlet Valor that he was confident that agreement would be reached, noting that the current proposals reflected rule changes by the Ministry of Transport and technical discussions with VLI, as well as information obtained during the earlier hearings.
- VLI announced a revised shareholding structure in May this year following the transfer of 10% of Mitsui’s shares to Canadian investment company Brookfield, which is now the largest shareholder with a 36∙5% stake.
