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CONCESSION

North-South Railroad to be auctioned on March 28

published: Feb 28, 2019 07:45 PM, last modified: Mar 01, 2019 06:21 PM
Winning bidder will provide public rail service over a 1,537-kilometer section from São Paulo to Tocantins. Minimum bid will be of R$ 1.353 billion
North-South Railroad to be auctioned on March 28

Auction is part of the package of actions for the 100 days of the federal government - Photo: Agência Brasil

The federal government has announced that it will auction a new section of the North-South Railway - from Estrela d'Oeste (SP) to Porto Nacional (TO) - on March 28. The railway section is 1,537 km long. The minimum bid will be of R$ 1.353 billion, with projected investments of R$ 2.8 billion in the railroad over the full period. The concession term is 30 years.

The auction will be held on the São Paulo Stock Exchange. Bids will be received by March 25. The winning bidder will provide public rail service in the stretch auctioned and ensure the maintenance and conservation of its infrastructure. It will also be required to execute environmental plans, implement maintenance facilities, filling stations and acquire railway equipment and rolling stock.

Railroad

The North-South railroad was designed to become the backbone of Brazil's rail network, integrating the national territory and contributing to reduce the logistical cost of freight transport in the country. According to estimates, the railway section being auctioned could capture a demand equivalent to 22.73 million tons by the end of the concession period.

The auction is part of a package of actions defined for the first 100 days of the new administration. In all, 23 infrastructure related auctions are planned, including port terminals, airports and railways.