The existing concession for the 1989km network was awarded to Ferroban in 1998 and was due to expire in 2028. During the concession Ferroban became ALL in 2008 which in turn was taken over by Rumo in 2016. The concession will now run for another 30 years until 2058.
Negotiations for the early renewal of Rumo’s Paulista concession started in 2016. The process included a public hearing and the plan was approved by the Federal Audit Court (TCU) at the end of last year. Under the terms of the contract, Rumo will invest Reais 5.7bn ($US 1bn) during the five years and will pay the government fees of Reais 2.2bn.
“The renewal of the Rumo Paulista network marks an advance for the sector, as it fosters the production chain and job creation in Brazil,” says Gomes de Freitas. “We are taking a big step in diversifying the Brazilian transport matrix.” The ministry says early renewal will allow freight traffic to grow from the current 30 million tonnes per year to 75 million tonnes by the sixth year of the new concession.
Around 1500km of the Paulista network is 1600mm gauge, with the rest either metre or dual gauge. The network serves the state of São Paulo and runs from Santa Fé do Sul, on the border with Mato Grosso do Sul state, to the port of Santos. The main types of freight transported on the network are corn, soy, sugar, soybean meal, iron-ore, diesel oil, containers, cellulose, alcohol, manganese and gasoline.
In addition, the Carajás Railway, the Vitória-Minas Railway and the MRS Logística concessions are also in line for early renewal.