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June 21, 2012

Brazil to invest $6.7bn in four rail projects

Brazil is planning to invest BRL13.7bn ($6.7bn) to lay four railway lines in the south of the country.

By admin-demo

Brazil is planning to invest BRL13.7bn ($6.7bn) to lay four railway lines in the south of the country.

The projects will form part of Brazilian government’s BRL200bn ($98.3bn) investment plan to expand the rail network by one third of the existing length by 2025, according to Valor Economico.

The proposed railway lines include a link between the city of Panorama in Sao Paulo state and the Rio Grande port in the state of Rio Grande do Sul.

Another branch will be constructed to connect to the southern city of Uruguaiana, in the state of Rio Grande do Sul.

It will also provide an east-west link from Chapeco to the port of Itajai and a link between the cities of Maracaju, in the Mato Grosso do Sul state and Toledo, in the state of Parana.

The Brazilian government is considering to complete research for the project by the end of 2013 before moving ahead with construction.

Valec, Brazil’s state-owned railroad builder, which is currently constructing the North-South Railway project, is planning complete the 2,740km of railway line and then lease the line to transportation companies.

Leasing rail segments to private operators is part of government’s policy which sells off operating rights for a stretch of railroad to a single user.

As part of the plan, Valec has already leased completed sections of North-South Railway project to iron ore producer Vale for 30 years.

Vale is also planning to improve the rail links to the existing rail networks in the region operated by Brazil’s leading railway operator, ALL America Latina Logistica in addition to the link to the city of Panorama.

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