The Brazilian government plans to launch a national railway concessions policy, aiming to unlock a series of concessions in the sector throughout 2026, with the potential to generate 600 billion reais (US$110bi) in investments.
The details of the policy will be announced by the ministry of transport on November 25, at an official event.
"The ministry plans to hold eight railway auctions next year, which will leverage more than 600bi reais in the sector. Approximately 9,000 kilometers of tracks will be granted in concession," said the ministry, which has not yet disclosed the projects to be offered.
Since the beginning of President Luiz Inácio Lula da Silva's administration in 2023, the Brazilian government has been trying to move forward with a portfolio of concessions in the freight rail segment, but the plan has faced several delays.
According to industry experts, freight rail projects are complex to attract private investment, as they require high capital expenditure, while cash flow is only generated after the complete conclusion of the works, which reduces investor interest.
To mitigate the risks, the Brazilian government has been working on early renewals of railway concessions.
In these renewals, the government raises funds from companies in exchange for extending contracts, using these funds to finance the first years of the new agreements, precisely the period of greatest risk related to licensing. With this measure, the government seeks to reduce uncertainty and attract greater interest from the private sector.
As part of this plan, this week the government signed the final contract for the renewal of the railway known as Malha Sudeste, operated by MRS Logística.
Through this early renewal, the government secured 2.8bi reais for its railway program.
The Malha Sudeste is a railway line spanning over 1,600 km that connects the states of Minas Gerais, Rio de Janeiro and São Paulo. The current concession contract was due to expire at the end of this year and has now been extended until 2056.
Highways
Meanwhile, the ministry announced that on November 25 it will also detail its plans for 2026 in the highway segment, when it expects to auction off 14 more highway concession contracts, generating future investments of 158bi reais.
(The original version of this content was written in Portuguese)
