Other Logistics

Early renewal of the Malha Paulista concession is guaranteed by TCU

Nov, 28, 2019 Posted by Sylvia Schandert

Week 201949

On Wednesday (11/27), the Federal Audit Court (TCU) approved the early renewal of the railway concession of Malha Paulista, Rumo’s railroad that goes from Santa Fé do Sul (SP), almost on the border with the state of Mato Grosso do Sul, to the Port of Santos, in São Paulo.

With the anticipated approval, the contract that would expire in 2028 will be renewed for another 30 years and will be valid until 2058. This will also allow a contribution of about R$7bn between investments in the railroad itself in the next 5 years and grant paid to the state. The goal is to expand the annual transportation offer from the current 30m tons to 75m tons by the sixth year.

For Infrastructure Minister Tarcísio Gomes de Freitas, the renovation represents an advance in the diversification of Brazil’s cargo transportation matrix. “We are taking the first and definitive step to make cross-investment planning feasible, a significant part of a strategy for the government to expand rail participation in Brazil’s transportation matrix,” he said.

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