Brazil gov’t to grant 16 thousand km of road to private enterprise

The Brazilian government plans to transfer 16 thousand kilometers of roads to the private enterprise through concessions, said Brazil’s Infrastructure Minister Tarcísio Gomes de Freitas today (Jun 24). During a meeting with executives in Rio de Janeiro, he said virtually all of the state’s road network is likely to be granted to the private enterprise.

The minister also said he is considering how to charge tolls according to how many kilometers a vehicle runs on Rio de Janeiro’s Dutra Avenue, in order to include in the source of payment drivers that move in toll areas and do not pay. “By increasing payment, I can bring more investment to the road and even work with lower fees.”

The minister also mentioned highways linking the states of Mato Grosso and Paraná, Minas Gerais and Espírito Santo, and Minas Gerais and Goiás.

Ports and railways

The government also intends to privatize wharves and ports, starting with firm Docas in Espírito Santos. The company was selected for having fewer labor liabilities, workers, and leasing contracts. “It’s a good case for starting this journey,” the minister said.

As for railways, the government plans to use the grant money so that concessionaires build new railways. This is to be included as a demand in the renewal of mining giant Vale’s concession for the railways in Carajás and Vitória–Minas.

“Vale is going to build the Central–West Integration Railway [between Mato Grosso and Goiás] for the government. The grant will be paid through this construction project. Ultimately, the railway belongs to us, to the state, which will grant the concession and demand a new one,” the minister said, adding that the company will also build a railway in Espírito Santo as part of the payment.

*With information from EBC radio reporter Lígia Souto