Brazil earmarks US$1.2bn for PAC railway works

Monday, September 8, 2014

Brazil proposed a bill that includes a 2.59bn-real (US$1.16bn) investment in railway works in 2015 under the PAC growth acceleration plan, according to federal government documents.

Through the cities ministry, nearly 2.24bn reais in investments is planned through federal rail company Valec; 233mn reais through transport infrastructure department DNIT; 100mn reais through logistics and planning group EPL, and 22.4mn reais via national ground transport agency ANTT.

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Budgeted at approximately 1.31bn reais, the largest Valec initiative involves building the Integração Oeste-Leste railway, also known as FIOL, in the state of Bahia. A total of 743mn reais has been earmarked for the Ilhéus-Caetité stretch and 564mn reais for the Caetité-Barreiras stretch.

The Norte-Sul railway will receive 628mn reais. Some 300mn reais has been set aside to build the Ouroverde de Goiás-São Simão stretch in Goias state; 190mn reais to build the Santa Vitória-Iturama stretch in Minas Gerais, and 85mn reais to build the Ouroeste-Estrela D'Oeste stetch in São Paulo.

The remaining 53.4mn reais will be used for several other Norte-Sul construction, maintenance, restoration and operation works.

Finally, 301mn reais has been destined for works on the Transnordestina railroad in the northeast, the documents said.


The largest DNIT project is priced at 90.1mn reais and involves building the Variante railway, also known as the EF-431, near Bahia's Camaçari city.

The next largest is the construction of two railway bypass stretches for the EF-485 railway in Santa Catarina state in the cities of Joinville and São Francisco do Sul, and budgeted at 70mn reais and 40mn reais, respectively.


While EPL has assigned 100mn reais to the bullet train budget, ANTT has earmarked 16.4mn reais for railway infrastructure exploration and supervision; 5mn reais to supervise leasing contracts, and 1mn reais for bullet train implementation studies, according to the documents.

The railway budget is part of PAC's 2015 infrastructure budget of 64.9bn reais.