FCA's renewal proposal envisions billions in investments for modernizing the railway sector.

247 - The proposed renewal of the concession contract for Ferrovia Centro-Atlântica (FCA), which is being analyzed by ANTT (National Agency for Land Transport), promises a major boost to the Brazilian railway sector.

According to information revealed by Agência iNFRA, the renewal plan includes R$ 28 billion in mandatory investments, with the majority destined for the permanent way. These resources are divided between infrastructure works and the modernization of transport equipment. The proposal also includes a projected total investment of R$ 33,2 billion, with the addition of other amounts, such as R$ 1,7 billion paid by VLI to the Federal Government and R$ 3,4 billion related to railway assets.

The proposed renewal, which will maintain VLI's management until 2056, has generated numerous discussions and criticisms, mainly regarding the distribution of resources and the impact on local projects. According to the Ministry of Transport, the renewal is being treated as one of the largest injections of resources into the railway sector in Brazilian history, and is an important step to guarantee the continuity of operations and the modernization of railway networks. However, the renewal still needs approval from the National Land Transport Agency (ANTT) and the Federal Court of Accounts (TCU) to be formalized.

Leonardo Ribeiro, the National Secretary of Rail Transport, explained that the investment allocation has been substantially altered compared to the initial proposal, which prioritized rolling stock such as locomotives and wagons. In the current version, 74% of the capital will be directed to the permanent way, with R$ 8,9 billion allocated to these improvements, and 26% (R$ 3,1 billion) to rolling stock. Ribeiro highlighted that this adjustment is an important step forward in the project, allowing the focus to be more on railway infrastructure.

Congressman Domingos Sávio (PL-MG), who opposes the contract renewal, strongly criticized VLI's return of sections of the railway. Sávio argues that returning part of the railway network to the Union does not solve the problem of abandoned structures, especially in Minas Gerais, and that the proposal is not compatible with the interests of the local population. "I don't understand how this can be considered reasonable. This concession is doomed not to be renewed," stated the congressman, expressing his dissatisfaction with how the investments were distributed.

On the other hand, Ribeiro stated that the government is open to dialogue and adjustments, emphasizing that negotiations are ongoing. He assured that the ministry is committed to finding a solution that benefits both the federal government and railway operators. The proposal also includes new investments for the Minas-Bahia corridor, with the revitalization of sections that are currently out of operation. The secretary stated that half of the resources allocated to the sector, approximately R$ 16,6 billion, will be destined for the state of Minas Gerais.

Marcelo Cardoso Fonseca, Superintendent of Infrastructure Concessions at ANTT (National Agency for Land Transport), highlighted that the proposal is still under analysis by the agency, and that, despite the progress, the project will undergo a more detailed evaluation before being submitted to the TCU (Federal Court of Accounts). “The proposal has advanced considerably, especially with the planned investments in permanent way infrastructure, which will generate a virtuous cycle for the operation of the railway,” stated Fonseca, emphasizing that ANTT will evaluate the project according to regulatory and technical criteria.

VLI, through its representative José Osvaldo Cruz, expressed confidence in the process and the changes that have been made since the initial proposal. Cruz stated that, although there are still details to be adjusted, the final proposal presents a robust project that will bring significant value to the Union's assets and to the future of railways in Brazil.