Petrocity Ferrovias has formalized with the state government its intention to make investments in Minas Gerais. In total, it will be R$16.8 billion in the implementation and operation of three interconnected railways: Juscelino Kubitschek Railway (EFJK), Vitória Minas Railway (EFMES) and Planalto Central Railway (EFPC).
Of this total, approximately R$16.5 billion are for the acquisition of machinery, equipment and civil works and R$263 million are for other investments not detailed. The Protocol of Intentions, signed last Wednesday (24), also confirms the commitment of the State Investment Promotion Agency (Invest Minas) – formerly Indi – to contribute to the feasibility of the contributions.
Investments in railways will begin in 2023 and end in 2038, as distributed in the protocol. EFJK, which will connect the city of Santa Maria, in the Federal District, to the port of São Mateus, in Espírito Santo, will receive the largest share of the investments, around R$12.5 billion (75%).
The other two railways, EFMES, from Ipatinga, in Vale do Aço (Minas Gerais) to Barra de São Francisco (Espírito Santo), and EFPC, from Mara Rosa (Goiás) to Unaí (Minas Gerais), will receive R$3 billion (18%) and R$1.2 billion (7%) respectively.
The new railway networks will also have 10 Cargo Transshipment and Storage Units (UTACs), six of which will be in Minas Gerais. They will “allow efficient integration between road and rail transport modes, intended for the provision of services”, according to the protocol. The units will operate from January 2026 to December 2028, “when it is expected to reach a production capacity of 26 thousand tons of transported cargo”.
According to the president of Petrocity, José Roberto Barbosa da Silva, the signing of the protocol with Invest Minas is an important step forward, as the Government of Minas Gerais recognizes the importance of these three railways for the development of the State, especially the impacted regions, such as Vale do Aço, Teófilo Otoni, Grão Mogol, Montes Claros and Unaí.
“Almost 67% of the three Petrocity railways, totaling 2,000 km, will be within Minas Gerais, so the signing gives us security, because Minas Gerais has just signed, assuming the commitment to seek alternatives and solutions so that we can actually implement them within the deadline stipulated with the Union, where Petrocity Ferrovias assumed the commitment to implement these 2,000 km by 2032”, he stated.
Private resources
The resources allocated to the project, according to José Roberto da Silva, are 100% private and are being structured within a financing model “where we will actually have a financed part, which we call debt, and also a part where large companies, including operators that are already doing business with us, will be coming in to participate in this entire operation with Petrocity Ferrovias”, he highlighted.
The president of Petrocity stated that they are discussing internally the best way to implement the projects within the pre-established deadline. According to him, because the railways are independent, they can be built at different times or in phases by subsections. “This is being structured now with our financial agent, with Petrocity's financial adviser , which is Euromax.”
Other companies have also been hired by Petrocity to help with the project. The construction of the railways will be carried out by Odebrecht Engenharia e Construções and the land surveys will be carried out by Bios. According to the group's executive, the company that is handling the environmental licensing has also been hired, in addition to the Bento Muniz office.
José Roberto da Silva highlights that the expertise and experience of professionals from Invest Minas, the Minas Gerais State Development Secretariat and the Minas Gerais Transport and Mobility Secretariat will be added to the companies involved in the project so that it can be effectively delivered within the deadline, currently nine years and four months.
Regarding the project's progress, the president of Petrocity is optimistic and states that other activities are already underway and studies are being refined. "We understand, based on the analysis of the entire group, that we are advancing beyond the expectations that were actually placed on the project, which were actually placed on the hiring of these companies. We are well beyond the expectation that would be 10 years and we are already managing to advance with environmental licensing proposals with the Brazilian Institute of the Environment (Ibama)," he added.
(From the Editorial Team)
Source: Trade Journal
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