Santos Port Authority selects consortium to manage internal rail network

Santos Port Authority (SPA), the state-run company that administers Brazil's busiest port, has selected a consortium formed by three companies to manage its internal rail network and increase freight capacity.

The consortium chosen is formed by Ferrovia Centro Atlântica, MRS Logística and Rumo, SPA said in a statement. 

The companies will assume a 35-year contract and will be responsible for the management, operation, maintenance and expansion of the railroad, and will have to invest around 891mn reais (US$169mn) in the first five years of the contract. 

The railroad was previously operated by Portofer, which is controlled by logistics firm Rumo. Portofer's contract was supposed to expire in 2025, but it was ended early as the port authority is looking to raise freight-handling capacity.

"The rail capacity of the Santos port complex is close to saturation, with 94% utilization, and its expansion is essential to efficiently handle future movement, which is projected to double within 5-10 years. Currently, the railway capacity of the port complex is 50Mt [million tonnes] per year and needs to reach 115Mt per year to transport the volume from the railroads that flow into the Port of Santos," SPA said.