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WHAT THE CORREIO THINKS
The future of the rail system
The renewal of the FCA concession cannot occur without the requirement for significant improvements, especially in the Minas-Bahia Corridor
Published on October 25, 2024 at 05:00
The Brazilian railway system, especially the section of the Centro-Atlântica Railway (FCA), is at a critical crossroads. With a length of almost 8 thousand km of tracks, this railway connects three fundamental regions of the country – Southeast, Northeast and Central-West – and moves a wide range of products, from agricultural inputs to industrialized goods. However, what should be a robust and efficient structure has become, over the last few decades, a symbol of abandonment and obsolescence.
Currently, the FCA concession, managed by VLI, is up for renewal. The company, which has operated the railway for almost 30 years, seeks to extend its control for another three decades. However, what is at stake is not just the continuity of a concession, but the very future of the country’s railway logistics, especially for Bahia, where the scenario is one of complete neglect.
The FCA tracks that cross the state of Bahia are in terrible condition, with an average operating speed of just 11 km/h. To make matters worse, the company announced the return of 291 km of lines, without due certainty as to who will take over the maintenance and operation of these sections. This puts the state at risk of complete railway isolation, as part of the networks to be returned are part of the important Minas-Bahia Corridor.
When talking about the future of this highway, one cannot fail to mention the narrow gauge – distance between tracks – of 1 meter, which is still maintained. Modern railway structures, such as the West-East Integration Railway (Fiol), which passes through the state, use 1.6 meter gauges, a difference that distances Bahia from full integration with the other regions of Brazil. VLI appears to have no interest in modernizing the existing infrastructure and prefers to maintain current conditions, with less investment.
In addition to the structural problems, there is a fundamental issue that needs to be considered: the neglect of Bahia. Despite moving billions of reais in products, the majority of VLI’s investments are concentrated in other states, such as Minas Gerais and Goiás. The lack of investment in the state not only harms the local economy, but also puts at risk the logistical connection between the Northeast and Southeast of the country.
The federal government needs to be firm. The early renewal of the FCA concession cannot occur without the requirement for significant improvements, especially in the Minas-Bahia Corridor. We cannot accept that, after another 30 years of concession, Bahia and Brazil as a whole continue to face the same logistical problems as today. It is necessary for the concessionaire to commit to real investments and the modernization of infrastructure, otherwise bidding will be opened for new operators.
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