Brazil's Valec seeks freight firms again for Norte-Sul rail

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Tuesday, November 4, 2014

For a second time this year, Brazil's federal rail company Valec seeks expressions of interest to transport cargo along an 855km stretch of the Norte-Sul railroad, according to company documents.

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Valec previously called for expressions of interest from May to August, but only one undisclosed company submitted a proposal. That company requested freight handling rights that conflicted with a contract held by mining giant Vale.

Ground transport agency ANTT analyzed the conflict and prepared a second call for freight companies. Independent rail operators and multimodal transport companies now have until April 30 to submit proposals.

Also known as EF-151, the stretch runs between the cities of Porto Nacional in Tocantins state and Anápolis in Goiás. It will be the first stretch available under the federal government's open-access railway concession model.

Open-access is aimed at increasing logistics efficiency, reducing freight cost and improving Brazil's competitiveness by separating cargo transporters from railway builders and operators.