June 20, 2012

Brazil plans open access on new lines

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BRAZIL'S policy of awarding concessions for the operation of defined networks or individual lines is set to change as the government plans to allow several operators to access four new lines that will be built in the south of the country.

The government does not believe that the rail network is being used to its full potential and thinks allowing more than one operator on a line will help stimulate growth. Valec, Brazil's railway engineering and construction company, will be responsible controlling access to the lines.

The four lines will have a total length of 2720km. They comprise a 1200km north-south line from Panorama via Chapecó and Passo Fundo to Rio Grande do Sul, which will cost Reais 6bn ($US 2.94bn) to construct, a 620km line to transport meat and poultry from Chapecó to the port of Itajaí costing Reais 3.1bn, a 500km line from Carazinho near Passo Fundo southwest to Uruguaiana estimated to cost Reais 2.5bn, and a 400km line from Maracaju southeast to Toledo near Cascavél which will cost Reais 2.1bn.

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