Brazil's FCA Central-Eastern Railway Network Concession Extended by Two Years from September 1

en.Wedoany.com Reported - FCA, the freight railway operator in Brazil's Central-Eastern region, confirmed on August 28 that its freight railway concession has been extended by 24 months, with the new term commencing from September 2026 and covering through the end of August 2028. The original contract was set to expire on August 31, 2026. Following the signing of the supplementary agreement, FCA will continue to be responsible for the operation of the rail network, as well as the maintenance, inspection, surveillance, and custody of railway assets.

Brazil's National Land Transport Agency authorized the signing of the supplementary extension agreement through Resolution No. 226 on August 14. The resolution was issued pursuant to Article 32 of Brazilian Law No. 13,448, under administrative proceeding No. 50500.001142/2026-79. The extension period is intended to maintain freight services, while the long-term renewal plan remains under a separate approval process and does not take effect as part of this two-year extension.

FCA's original concession contract for the Central-Eastern railway was signed on August 28, 1996, with a term of 30 years. The operational scope covers seven states—Minas Gerais, São Paulo, Rio de Janeiro, Espírito Santo, Bahia, Sergipe, and Goiás—as well as the Federal District, connecting ports such as Salvador, Aratu, Vitória, and Angra dos Reis, and transporting agricultural products, mineral products, steel products, and other industrial goods. The company's 2023 annual report records a total rail network length of 8,357 kilometers.

FCA's long-term renewal plan has been under discussion since 2015. Brazil's National Land Transport Agency approved the final plan on July 30, 2026, proposing to extend the concession period by an additional 30 years, with BRL 24 billion in mandatory investments and over 800 projects. Certain sections with insufficient economic viability are proposed to be returned to the government, and the concession network length after renewal is planned to be adjusted to 5,469 kilometers. The plan has been submitted to the Brazilian Federal Court of Accounts for review, and the long-term renewal supplementary agreement has not yet been signed.