Paraná state to offer concession for Ferroeste railway expansion in 2023

Brazil’s Paraná state said it plans to auction a concession contract for the expansion of the Ferroeste freight rail network in 2023.

The Nova Ferroeste project will add 1,567km to Ferroeste, which operates between the Paraná municipalities of Cascavel and Guarapuava. 

"The auction will be held on the São Paulo stock exchange, with no set date yet, and the highest bidder will be responsible for the works and operation of the railway for 99 years," the state government said in a press release.

“The contract involves building the stretch between Paranaguá [port] and Cascavel in the first seven years of its duration. The sequence of works connecting Foz do Iguaçu, Chapecó and Maracaju will be determined after this period," it said.

The auction’s minimum fee has been set at 178mn reais (US$34.2mn).

The amount raised by the auction will go in full to Estrada de Ferro Paraná Oeste, which is the operator of Ferroeste.

The local authorities are awaiting the approval of the project’s preliminary environmental license by environmental regulator Ibama to move the process forward.