Railways still key to Brazil's productive sector

Transporting freight via railways is still of key importance for Brazil, despite this form of transport being used more commonly for passenger transport in many European countries, national transport federation CNT director Bruno Batista told BNamericas.

"Considering the amount of Brazil's agricultural and mineral commodities, which are transported in very high volumes as production areas are very distant from ports, railway transport is the most suitable option," said Batista.

However, the most cost-effective and efficient way to transport cargo is by integrating railways with other modes of transport, he added.

To gain the most competitive advantage, each logistics scenario needs to be analyzed and this means considering variables such as the volume of goods being transported, the distance traveled and the type of freight (e.g. value, shelf-life) being handled.

According to a CNT study that addressed the handling of commodities such as soy and corn, combining railway transport with highways cuts freight handling costs by as much as 15%. Despite the labor-intensive construction required for railways, it is evident that building them is essential to the future of the national productive sector in Brazil, Batista said.

UPCOMING RAILWAY CONCESSIONS

In the second half of 2017, the federal government is planning to launch tenders for the Norte-Sul railway (EF-151) in São Paulo, Minas Gerais, Goiás and Tocantins states; the Ferrogrão grain railway (EF-170) in Mato Grosso and Pará states, and the FIOL railway (EF-334) in Bahia state.