Brazil seeks to use more rail PPPs

Brazil will incentivize PPPs to encourage freight rail investments, but authorities will also review legislation the preceding Jair Bolsonaro administration passed.

“What is new is that if we have budgetary conditions to carry out PPPs, the government contributes a piece, even a small one; 5%, 3%, 8% of a project already helps,” transport minister Renan Filho told reporters.

He added that the authorization regime currently in place will be analyzed for its effectiveness. Implemented in late 2021, it allows private players to build and operate short-line rail networks using government-owned rights-of-way, avoiding lengthy tender processes.

Although 32 contracts have been signed since, involving projected investments of 150bn reais (US$27.5bn), the new government, whose term started January 1, claims the amounts are speculative and unlikely to materialize.

Filho also promised to get stalled highway works restarted and lure private investment with concessions.