Kazakhstani group to invest R$14bn in railway concession
The Brazilian Infrastructure Ministry is studying a concession of the remaining stretches of the West-East Integration Railway, known as Fiol, which could be auctioned in bloc with the Central-West Integration Railway, Fico. The goal is to create a new corridor to transport goods from Mato Grosso to the coast of Bahia, according to Minister Tarcísio de Freitas.
On Thursday, the government auctioned the first stretch of Fiol, from Ilhéus to Caetité, in Bahia. Bamin, a subsidiary of Eurasian Resources Group, from Kazakhstan, paid R$32.7 million for a 35-year concession. It will now invest R$14 billion in the project.
Bamin intends to make all needed investments with its own cash, said Eduardo Ledsham, the company's CEO. The contract provides for R$ 3.3 billion in investments.
The line has two other stretches: from Caetité to Barreiras, in Bahia, and from Barreiras to Figueirópolis, in Tocantins, where there will be a connection with the North-South Railway. The remaining two sections of Fiol are being built by Valec and the plan is to use resources from grants for early renewals of concessions.
The Caetité-Barreiras section is already under construction - one part is being built by the Army and another is under bidding process. The progress of the work will benefit from Vale's early renewal of...
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