Brazil to increase rail cargo

 The Brazilian Government plans to almost double the percentage of rail cargo over the next eight years.

Rail Cargo in Brazil

“We plan to increase the share of railroad transportation from fifteen to 29 percent in eight years” stated Mr Tarcísio Freitas, Minister of Infrastructure.

He said creative solutions are being pursued to overcome the shortage of funds and get the projects off the ground. “We will build assets without depending on the budget,” he said.

The minister further noted that agreement drafts will be drawn up to terminate the contracts with road and airport operators facing financial difficulties.

Among the companies interested in returning the assets is the operator of Viracopos Airport, in Campinas (SP), and the BR-040 highway. It crosses Goiás, the Federal District, and Minas Gerais.

According to the minister, the companies have raised issues both over the bidding model and the involvement of certain entrepreneurs in corruption cases uncovered by Operation Lava Jato.

The plan is to introduce additions to contracts. Because they want to keep highways and airports in a good state of repair and running until the assets may be passed on to other entrepreneurs.

Source The Rio Times

Read More – Railroads face a freight slowdown

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