en.Wedoany.com Reported - Brazil's Transport Minister, George Santoro, stated on Tuesday (9th) that the Portuguese construction group Mota-Engil is awaiting authorization from the National Land Transport Agency (ANTT) to take over the concession for the Fiol 1 section of the East-West Integration Railway. This section is currently concessioned to Bamin, which has defaulted on its construction obligations. The interested Portuguese construction company's shareholders include China Communications Construction Company (CCCC).

Santoro stated that the regulatory approval process is "progressing well" and believes that a supplementary agreement with the new company will be signed by August, with construction resuming in 2026 and delivery of this railway section scheduled for 2033. According to the minister, investments are estimated at approximately 7 billion reais, which will also be used to develop the Porto Sul port in Ilhéus, Bahia (BA).

In January, the Ministry of Transport finalized the Fico-Fiol concession plan, i.e., the East-West Railway Corridor, and submitted it to ANTT for modeling. After the regulatory agency completes its analysis, the process will be submitted to the Federal Court of Accounts (TCU). The plan follows the structure used during the public consultation last year but does not include the Fiol 1 section.

"This year, one of the eight railway auctions will be the Fiol 2 to Fico 2 (Midwest Integration Railway) corridor. We have unlocked over 200 kilometers of the Fiol 2 section that were blocked due to environmental licensing issues and will bring it to market," Santoro added. According to him, the entire corridor project is expected to be completed between 2037 and 2038.

However, the financial viability of the complete line and uncertainties regarding the construction of certain sections remain key concerns for the private sector. The corridor is composed of a patchwork of railway networks at different stages and depends on the resolution of issues related to Fiol 1 and the Port of Ilhéus. The Port of Ilhéus is considered a complex private project, and its failure to materialize could affect the future attractiveness of the railway network.

The modeling of the Fico-Fiol corridor envisions four sections. Fiol 2, stretching nearly 500 kilometers from Caetité to Barreiras (BA), will be built by the federal government. According to the baseline scenario from the public consultation, completion of this section by the concessionaire will trigger the operation and implementation of Fiol 3 (extending nearly 900 kilometers to Mara Rosa, GO).

From Mara Rosa, Fico 1 (Midwest Integration Railway) covers 364 kilometers to Água Boa (MT). The corridor continues to Lucas do Rio Verde (MT), encompassing the Fico 2 section. This final section is included in the project as a non-mandatory investment for the future concession, subject to an agreement between the government and the operator. The Ministry of Transport had previously evaluated including the section from Ilhéus to Caetité in Bahia in the future concession, but this plan was shelved following the potential sale of the operating rights by the current company.

Once fully operational, the railway will allow cargo to reach at least five existing ports—Itaqui (MA), Aratu (BA), Vitória (ES), Rio de Janeiro (RJ), and Santos (SP)—via connections to the Central Atlantic Railway (FCA) or the North-South Railway (FNS), in addition to the planned Port of Ilhéus.

During his appearance on the "Good Morning, Minister" program on Tuesday (9th), Santoro previewed that the government, through the National Bank for Economic and Social Development (BNDES), would announce a new dedicated credit line for the railway sector on Thursday (11th) at the "New Paths on Rails: The Future of Railways in Brazil" event at the B3 Arena in São Paulo. "We are working on a very special credit line with long repayment terms, which should attract new European and Chinese investors to projects in Brazil," he emphasized.

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