Created in 2012 and known as the state-owned bullet train company, Empresa de Planejamento e Logística SA (EPL) was merged into Valec, a state-owned railway company under a public-private partnership. The merger of the two companies was completed today (30), according to the Ministry of Economy.
The process of unifying the two companies began in May of this year. As the two companies are dependent on the National Treasury, the measure means one less state-owned company in the structure of the federal government.
With the measure, the Ministry of Economy explained, the number of federal state-owned companies now stands at 178. According to the ministry, at the beginning of 2019, there were 209 federal state-owned companies in operation.
In a note, the ministry informed that the merger rationalizes public administration and reduces public spending, since the two state-owned companies operated in the same area, had the Union as a sole partner and were dependent on budget resources.
“The measure is also relevant in a context in which the tendency of the infrastructure sector is to attribute the operation and exploitation of certain services and activities to the private sector as a way to improve the services provided, reduce expenses, leverage investments and improve the allocation of resources. public”, informed the Ministry of Economy, in a note.
High Speed Train
EPL’s mission was to structure the modeling of infrastructure projects, including the High Speed Train (bullet train) that would link the cities of Rio of January and Sao Paulo. The company also had the mission of preparing feasibility studies and regulatory impact for the railroad sector.
According to the ministry, the incorporation will not imply an increase in personnel expenses and social charges. With 729 employees currently, Valec will receive EPL’s 143 positions. The merger process resulted in the cutting of 12 directors and directors of the two companies, which will represent annual savings of 34% in fees.
In addition to the functional expenses, there is an expectation of a drop in current expenses (operation of the public machine) with the merger of surplus structures. The Ministry of Economy did not release estimates of the decrease in spending.
“The action aims to strengthen the operations of state-owned companies by allowing the development of new products and expanding the scope of the infrastructure sector with a multimodal performance, in addition to gains in efficiency in the structuring of projects”, concluded the Ministry of Economy.