IDB Supports Brazil's Initiative to Reactivate Railroad Sections with Focus on Sustainability, National Logistics Bolstering

The Inter-American Development Bank (IDB) and Infra S.A., linked to Brazil’s Transportation Ministry, are joining forces to conduct studies to revitalize nearly 10,000 km (6,200 mi) of railroad sections that will be returned by concessionaires. The initiative seeks to boost the share of rail transport in Brazil's transportation matrix, promote regional development and offer low-carbon solutions that reduce greenhouse gas emissions through smaller-scale concessions.

On Dec. 11, the IDB opened the contracting process for the studies, inviting national and international companies to submit proposals. The goal is to produce models to give a new destination to the sections that will be returned by the concessionaires Rumo Malha Sul, Ferrovia Centro-Atlântica (FCA) and Ferrovia Transnordestina Logística (FTL). The operational feasibility of the section connecting São Luís/MA to Fortaleza/CE, part of the current FTL railroad network, will also be analyzed.

"The studies are essential to revitalize inactive rail stretches, boost sustainable regional development, reduce carbon emissions and strengthen Brazil's economic competitiveness. The IDB is committed to leveraging its international expertise to create solutions that combine logistical efficiency with environmental benefits," said Annette Killmer, IDB representative in Brazil.

According to Infra's CEO, Jorge Bastos, the initiative seeks to strengthen the country's logistics infrastructure and balance the transportation matrix, increasing the railroad's participation.

"These inactive stretches are valuable assets that, with the right investments, can generate significant returns in terms of logistical efficiency, economic competitiveness and regional development,” he said. “Many of these sections have the potential to integrate small producers into the global market and offer logistics solutions that respond to the demands of the productive sector", said Bastos.

Innovative Approach and Strategic International Partnership

Infra will use data from the National Logistics Plan and the National Transport and Logistics Observatory to support the studies. The methodology will include meetings with productive sector actors, field visits, and technical evaluation of the railway infrastructure.

Partnering with the IDB will allow Brazil to conclude pre-feasibility studies in six months and conduct three technical, economic and environmental feasibility studies for delivery within 12 months. These documents will be essential to support new bids or other forms of utilization of the railroad sections.

By combining international expertise and dialogue with local stakeholders, this initiative reaffirms the commitment of the IDB and the Brazilian government to promote innovative and sustainable logistics solutions, ensuring greater regional integration and economic competitiveness.