Infrastructure: only 20% of cargo transport in Brazil is done by rail

Rodrigo Bertoccelli, lawyer, professor and specialist in infrastructure, considers it essential to attract private investment, through concessions and public-private partnerships, for the development of the sector.

“The importance of increasing this freight transport by rail is that it is a much faster, cheaper, less polluting transport and, certainly, could boost Brazilian infrastructure and reduce Brazil’s logistical bottlenecks. A wide and interconnected railway network would benefit the entire production process and the flow of Brazilian exports”, he says.

Despite being considered more sustainable, safe and efficient, the railway modal still lacks investments and is identified as a challenge for the growth of Brazil. One of the goals set forth in the National Logistics Plan (PNL 2035), published in 2021, is that the railway network will account for 40% of total cargo transport by 2035. In the same year, the Regulatory Framework for the Railway Sector (Law 14.273/21)which allowed the construction of railways by authorization, as it occurs in other sectors, such as telecommunications and electricity.

According to the Ministry of Infrastructure, the authorization takes place through a simplified contract in which the interested party assumes a greater risk for the project. By the end of 2022, 89 requests were filed, totaling BRL 258 billion in private investments. Enough value to almost double the Brazilian railway network. The amount makes it possible to build more than 22,000 kilometers of new rails. However, the projects are still pending approval.

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How to reach the goal?

Bertoccelli points out some vectors that he considers essential for Brazil to achieve the goal established by the PNL 2035: investments in rail infrastructure; elaboration of favorable public policies; integration between modes of transport; stability and predictability of the regulatory framework for railroads.

“It is important, therefore, to diversify the transport matrix and work on public policies to encourage the transport of cargo by other means, such as railroads and waterways, diversifying this matrix and seeking to reduce the negative impacts of road transport”, he highlights.

For senator Confúcio Moura (MDB-RO), chairman of the Senate Infrastructure Services Commission, the multimodal integration of road, rail, waterway and air transport is a strategic need for any country. The parliamentarian defends incentives and the participation of the private sector in major projects aimed at the sector.

“Strategically, taking advantage of navigable Brazilian rivers and expanding the rail network is extremely important, and lowering the cost of transport through integrated multimodality. My position is on the need for Brazil to make well-defined and planned investments in the area of ​​railways and dredging of navigable rivers”, points out the senator.

According to the National Railway Transport Association (ANTF), each wagon on a train transports almost four times the volume of a truck. While a wagon has the capacity to carry 100 tons, a truck carries 28 tons. ANTF states that a train of 100 wagons corresponds to 357 trucks.