Brazil Rail Transportation

The Brazilian government has initiated a significant development in the railway sector by introducing the Public Call model to enhance existing brownfield projects. This model permits private operators to assume control of underutilized railway segments, offering them greater room to propose innovative solutions and business strategies.

The public call model combines brownfield public infrastructure with a licensing model. The public call allows the government to make underutilized or uneconomical railway sections available for private operators to take over the execution of services. Unlike the traditional concession model, the operator has greater flexibility to propose solutions, business models, and investments, while respecting safety and public interest rules.

The first section to be offered is the Minas-Rio railway corridor (Central-Atlantic Railway). The selection process will begin between September and October, 2025. Currently, the Central Atlantic Railway is operated by VLI Logistica, which has just renewed their concession rights until 2056 by returning about 3,200 kilometers of railway lines to the Federal Government as part of the agreement.  

Brazil has around 10,000 kilometers of idle railway lines. The proposal is to reactivate these sections through new concession models with contracts of up to 99 years and free tariffs.

This new proposed format represents a new business model for the railway sector, aiming to transform liabilities into assets, generate logistical efficiency, and create opportunities for independent operators and regional short lines.

Opportunities for U.S. Companies: Brazil’s new public call model presents opportunities for U.S. companies by creating a simpler, faster process for private sector investment in building and operating rail projects.  This model allows for the introduction of advanced U.S. freight rail technologies, including alternative energy sources, digital solutions, and specialized equipment, to meet the growing demand for modern railway infrastructure.  

If you wish to learn more details about the public call model and related procurement opportunities and introductions, please contact Fabíola Rios, Transportation  Specialist, U.S. Embassy, Recife Office, at fabiola.rios@trade.gov.