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Investment planning for Rio/Espirito Santo railroad drops from 7 bln to about 5 bln

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Cost of the railroad line connection between the states Rio de Janeiro and Espirito Santo (EF-118) had its investment value reduced from R $ 7 billion to R $ 4.95 billion, after revisions in the project, informed the undersecretary of Transportation Transport, the government of Rio de Janeiro, Delmo Pinho. The values ​​do not include the BDI (Bulletin of Indirect Expenses).

According to Pinho, the value was reduced because the original project, because it was the first to be ready among the railway projects that the federal government placed in its portfolio, was more rigorous, with rules for level passages. Once the project was completed, the ANTT (National Land Transport Agency) reviewed the regulations, which generated most of the economy.

“We pay for pioneering,” Pinho said, recalling that the railroad has already passed through a public hearing in both states.

The revised project was presented to the federal government last week. According to Pinho, as the review was done by the UFSC (Federal University of Santa Catarina), which assists the government in the analysis of the projects, it should not have problems to be included among the projects that are going to enter the PPI (Investment Association Program) in 2018.

Pinho recalled, however, that the government has not defined the way in which the work will be carried out, whether through a concession or through an extension of the works for the renewal of railway concessions in the region.

Railroad line Ferroanel  Sao Paulo

The governments of Rio and Espirito Santo work with the hypothesis of having part of the resources of granting the early renewal of the MRS to do the work, according to the undersecretary. The estimate is that the current value of the renewal payment would be in the range of R $ 5 billion.

But the Rio government understands that the priority is to make the Ferroanel de Sao Paulo, estimated at R $ 3 billion, which would help bring general cargo from the metropolitan region of Sao Paulo to the ports and businesses of Rio de Janeiro.

“We have already seen studies that show that there is potential for transporting 10 million tons per year of general cargo to Rio,” said Pinho.