Leonardo Ribeiro, the National Secretary of Railway Transport representing the Ministry of Transport, emphasized the importance of allocating state resources for the development and execution of railway projects.
He made this known during the railway concessions, which were the focal point of a debate held on Tuesday the 18th in the Legislative Assembly of Minas Gerais.
“We are talking about complex projects, often financially unviable. This is when governmental support becomes crucial, making these projects feasible and providing the private sector with a higher rate of return,” Ribeiro stated.
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Prospects in Brazil
Ribeiro also highlighted the political unity favorable to railways, integrating the Executive Power, Legislature, and civil society. “I believe that the expansion of railways in the country will be achieved not only through financial and contractual aspects but mainly through a political agreement.”
An example of this collaboration was the annulment of the vetoes in 2023 on the Railway Legal Framework. Provisions such as Article 66, which links subsidy and compensation resources to the railway sector, and Article 25 of Law 13.448, which authorizes cross-investment in the railway sector, are fundamental for the promotion of railways.
“With resources and economic feasibility studies, the State can contribute to new auctions or investments to improve the efficiency of logistics operations via railway,” Ribeiro continued.
On the other hand, the Ministry is in dialogue with the concessionaires to renegotiate the contracts. The federal government expects to raise around R$ 20 billion with the early renewal of the concessions, funds that will be invested in auctions of new railway lines.
“We will be able to hold annual auction rounds, similar to what happens in the road sector,” Ribeiro concluded.
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