en.Wedoany.com Reported - The Brazilian government has officially initiated the bidding process for freight railway concessions totaling 53 billion reais (approximately $10.6 billion). The National Land Transport Agency (ANTT), the industry regulator, has approved a public hearing for the concession contract of the "Malha Sul" (Southern Railway Network) system.

This railway network connects the states of São Paulo, Paraná, Santa Catarina, and Rio Grande do Sul, comprising three corridors: the Paraná-Santa Catarina Corridor, the Rio Grande Corridor, and the Mercosur Corridor, with a total length of 4,248 kilometers. The government plans to auction the three corridors separately in the same bidding event. The network is currently operated by Rumo Malha Sul S.A., whose contract expires in 2027.

In a statement, ANTT said the total investment plan over the 30-year concession period includes 14.4 billion reais in capital expenditure and 38.6 billion reais in operating expenditure. The regulator noted that the public hearing provides an opportunity for social and economic entities, as well as other stakeholders, to submit suggestions on the draft tender and contract. Project information will be released starting June 8, 2026, with the deadline for submitting comments from June 15 to August 10, 2026. ANTT did not specify the exact dates for the tender notice and auction.

This move is part of the federal government's plan to auction a series of freight railway concessions. Transport Minister George Santoro recently told BNamericas in an interview that the first railway concession tender is expected to launch in June. Although the initial process will take longer, subsequent contracts will be handled more quickly. The government plans to hold eight freight railway auctions this year, with the first contract expected to be the approximately 571-kilometer-long Southeast Railway Loop (also known as EF-118).

The three corridors of the Southern Railway Network each have distinct roles, lengths, and functions. The Paraná-Santa Catarina Corridor, spanning 1,502 kilometers, serves as the structural backbone of the project, connecting Maringá, Ourinhos, Apucarana, and other areas to the ports of Paranaguá and São Francisco do Sul. It handles 78% of the network's freight volume, primarily exporting grains, sugar, pulp, and fertilizers. The Rio Grande Corridor, 880 kilometers long, connects Cruz Alta to Cacequi and extends to the Port of Rio Grande, accounting for 16.6% of transport volume, with goods mainly consisting of grains, fertilizers, and fuel. The Mercosur Corridor, 1,865 kilometers long, provides interstate connectivity from Iperó in São Paulo state to Ponta Grossa, passing through multiple cities and extending to Uruguaiana on the Argentine border.

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