Brazil announces freight, passenger and urban rail concession plans

BRAZIL: The federal government has published a list of major rail projects for which bids could be called next year. These include the construction or rehabilitation and operation of freight corridors and terminals, as well as the launch of passenger services. Separately, state governments are seeking to award concessions for metro, suburban rail and inter-city rail projects, with tendering also expected next year. Minister of Transport George Santoro announced a list of infrastructure project to be carried out as concessions at the B3 Stock Exchange in São Paulo on October 15.

The package has a total value of R$160bn. Government contributions, public guarantees and special financing from federal development bank BNDES were also announced.

The publication of the package followed the first round of the presidential elections held on October 4, when challenger Flávio Bolsonaro (47%) came ahead of incumbent Luiz Inácio Lula da Silva (45.2%). The second round of the elections will take place on October 25.

While the result of the elections can be expected to change the commitment to the large concession packages, infrastructure experts told local media they expect them to continue whichever candidate wins.

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