Brazil's senate set to vote on bill to boost railways

Brazil’s senate is planning to vote this week on a bill to boost the country’s railways at a time when the federal government is working to unlock investments in major projects.

The bill would allow private sector investors or operators to propose to the government new projects and assume the commercial risk, according to a senate release. 

Currently, rail projects need to be government initiatives, which limits construction of shorter stretches of line. The idea of the bill is to allow shorter stretches that serve the specific needs of private investors.

"The bill provides security and incentives to public and private investment in new railways and the revitalization of the abandoned or inoperative network. We reconcile suggestions from operators, the government and users," said Jean Paul Prates, the senator of leftist Workers’ Party (PT) who is the bill’s rapporteur. 

The bill, which still has to go to the lower chamber, has a good chance of being approved in both houses as it is supported by leftist, centrist and right-wing lawmakers. 

The rail lines to be constructed by private players would be exclusively operated by those investors for at least 25 years, according to the bill. 

Rail projects in Brazil tend to take years to materialize as they involve major extensions, crossing multiple states and the government evaluates projects capable of being used for both freight and passengers. 

The bill would pave the way for lines in remote regions to improve logistics efficiency, allowing access to ports, which is likely to benefit the mining and agriculture sectors. 

Currently, the government is trying to advance with concessions for two major rail projects, the FIOL and Ferrogrão networks, after years of discussion.