Ministry of Transport conducts offensive with new benefits for the market and aims to auction 8 lines to expand railway network
Last week, the Ministry of Transport began a new offensive to advance railway concession projects to the private sector in the final stretch of the 3rd government (PT).
With new financing mechanisms and nods to potential investors, the department led by tries to resume planning for the railway sector after having delayed practically the entire auction schedule prepared for 2026. The initial goal was to auction 8 railways in the year, but to date, no notice has been published and part of the auctions should be held until 2027.
The ministry justifies the delay by the need for adjustments in technical studies, evaluation and preparation of draft notices by ANTT (National Land Transport Agency) and the processing of each project at the TCU (Federal Audit Court).
Despite the delay, the idea is to hold at least 4 auctions of projects that are already more advanced and only technical, economic and socio-environmental feasibility analysis by the TCU (Federal Audit Court) to advance to the bidding phase. The projects for the Minas-Rio Corridor, the Southeast Railway Ring, the Malha Oeste Railway and Ferrogrão are already before the Court.
There are also 2 projects that are in the public hearing phase (East-West Corridor and Malha Sul) and another 2 in the technical study stages (North Extension of the North-South Railway and Luziânia-Brasília passenger railway).
While waiting for the projects to progress through the technical stages, the ministry works to attract national and international investors to the projects. On the external front, the main target is China, where a Brazilian delegation carried out an unprecedented mission last week to present to the Chinese market the portfolio of projects and financing instruments that make up the new Brazilian strategy for the railway sector.
The group formed by members of the Ministry of Transport, ANTT, BNDES, B3 and Infra SA had meetings with more than 10 Chinese institutions and companies in infrastructure, logistics and investments. In addition to the Asian country, the government also plans a new roadshow in London (United Kingdom).
MESH EXPANSION
The portfolio of projects being announced by the government includes new lines, expansion of existing networks and connections with existing waterways, highways and railways.
The idea is to transform the Brazilian railway network into an integrated national logistics platform to connect production, consumption and exports, reducing the Brazil Cost, a set of bureaucratic, structural and economic difficulties that make production and operation of companies in the country more expensive.
FINANCING ATTRACTIONS
On the national front of the initiative, the Ministry of Transport met on Thursday (June 11, 2026) potential private sector investors in B3. Minister George Santoro presented the potential of the works, projections of cargo transportation demands for the coming decades and the objectives of each of the projects. Government projections speak of injections of R$600 billion in the railway system and R$160 billion in investments in the Brazilian network.
To attract national and international operators, the Ministry is investing in new financing mechanisms. The main attraction is a from BNDES with a term of up to 40 years, specifically for railways.
Another proposal is the use of linked accounts in railway projects, which is still awaiting authorization from the TCU, but has already received a favorable opinion from the AGU (General Attorney’s Office). The initiative will allow the sector to carry out capital recycling.
These instruments provide for the creation of accounts fed with funds from contract renegotiations, compensation (for return of sections, for example) and direct contributions from the Union.
To secure contributions, the government wants to use the FDIRS (Sustainable Regional Infrastructure Development Fund). The Ministry of Transport will purchase shares in the fund via the budget, which in turn will be able to enter into swap contracts with multilateral banks.
The government’s objective with the contributions is to help companies cover the so-called Viability Gap, one of the financial challenges that have historically prevented the advancement of new railways in Brazil.
Many railway projects, especially greenfields (works from scratch), have a negative cash flow at the beginning due to the long construction time without revenue.
Unlike a highway, where a toll is charged a few months after the auction, a railroad can spend 8 years or more under construction before generating any revenue. This period without cash inflow creates a financial “gap” that makes the project unfeasible for the private investor to take on alone.
