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October 25, 2022
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Railways Law: regulation will attract investments to the sector

Brazil has one of the best environments for PPP in Latin America

In order to facilitate private investments in the country’s railway sector, the federal government published the Decree No. 11,245, of October 21, 2022which regulates the Law No. 14,273, of December 2021, the so-called Law of Railways. The rule will allow the construction of new tracks, the use of idle stretches and the provision of rail transport service, through the authorization model.Railways Law: regulation will attract investments to the sector

The decree, published in the Official Diary of the Union this Monday (24), deals with the organization of rail transport and the use of rail infrastructure in the national territory, enabling new investment opportunities, informs the Ministry of Infrastructure (Minfra).

“With the legal framework, the new administrative processes of requesting authorization for the exploration of railways and the public call for interested parties to obtain authorization for the indirect exploitation of federal railways not implemented or in the process of devolution or deactivation are regulated”, he also says. the Minfra.

According to the ministry, the expectation is for an increase in the operational availability of Brazilian railroads with the consequent expansion of the federal rail network, helping to resume economic growth and create jobs.

According to the ministry, until September, one year after instituting the model for railway authorizations, 89 requests from the private sector had been registered, made by 39 applicants. “The requirements add up to 22,442 kilometers of new rails in all regions of the country and have a projected investment estimated at R$ 258 billion”, informs the ministry.

The Union and the private sector have so far signed 27 contracts. They have already received authorization to build new railroads. “The projection of private resources to be allocated in the implementation of these projects already authorized adds up to R$ 133.24 billion and 9,922.5 kilometers of new tracks, crossing 15 units of the Federation”, says the Minfra.

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