Sunday, April 18, 2021

Auction for stretch of the West-East railway will be held this Thursday

Facebook
Twitter
Pinterest
WhatsApp
Telegram

Must Read

This report is part of the EXAME Desperta newsletter. Subscribe for free and receive a summary of the subjects that will make the news every morning.

The first section of the West-East Integration Railway (Fiol), between Ilhéus and Caetité, in Bahia, will be auctioned this Thursday, 8, at São Paulo Stock Exchange (B3)on the second day of Infra Week. The concession should guarantee 3.3 billion reais in investments. Of this amount, 1.6 billion reais will be used to complete the works in the region.

Fiol started to be built in 2010, but, until now, about 75% of the railway works are ready. The winning bidder will take the missing part. The 537-km stretch is an important logistical corridor for the transportation of iron ore and grains in the state.

The winning company will be able to manage the area for the next 35 years, according to the National Land Transport Agency (ANTT). The expectation of the Ministry of Infrastructure is that the stretch will start operating in 2025, with transport of more than 18 million tons of cargo. In 2035, the capacity is expected to reach 50 million tons.

The stretch will begin operations with 16 locomotives and more than 1,400 wagons, according to the ministry. 1,100 of them will be for iron ore disposal. In ten years, the government expects the operation to have 34 locomotives and 2,600 wagons.

The auction of Fiol should be different from this Wednesday, which guaranteed the concession of 22 airports to the private sector for 30 years, with more than one bid in each block. In the case of the railway section, it is most likely that the only company interested is Bahia Mineração (Bamin), what do you expect invest in the stretch to facilitate the flow of 20 million tons of iron ore per year. The company is responsible for Porto Sul, in Ilhéus.

Facebook
Twitter
Pinterest
WhatsApp
Telegram

Latest News

More Articles Like This

spot_img