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BRAZIL: The federal government has established a working party to review options for rehabilitation of the Malha Sul network currently operated by Rumo Logística, whose concession awarded in 1997 is due to expire in 2027.

The 7 223 km Malha Sul network is located in the states of Paraná, Santa Catarina and Rio Grande do Sul, where sections of route were badly damaged by flooding during May 2024. Many parts of the network are barely used or moribund, and traffic has ceased on numerous branches.

The objective of the review, due to be carried out over a 90-day period, is to determine the current condition of the network and to ascertain where renovation and maintenance work needs to be carried out. The review also aims to examine how the necessary investment can be funded, potentially with contributions from the concessionaire and the public sector.

National Secretary of Rail Transport Leonardo Ribeiro said that creation of the working group ‘represents a fundamental step towards increasing the efficiency of the southern network. With the participation of the federal government, states and the railway sector, it will be possible to better understand specific demands, identify the main bottlenecks and propose solutions that guarantee full operation.’

Traffic on the network consists mainly of soya products, corn, sugar and industrial products such as fuel, metals and clinker, but some of this can no longer be carried because of the damage caused by the floods.

The review team is led by Executive Secretary at the Ministry of Transport George Andre Palermo Santoro, who will work with Leonardo Ribeiro, ANTT Director General Rafael Vitale, General Director of the National Department of Transport Infrastructure Fabricio de Oliveira Galvão and President & CEO of Infra SA Jorge Bastos.

Local politicians are asking for sections of the network to be rebuilt so that tourist traffic can be revived. In particular, they are seeking restoration of the 46 km stretch from Guaporé to Mucum which was badly damaged by landslides.