This article examines the new procurement model approved by the TCU for public railway calls in Brazil.
Overview of the Approved Model
On 19 August 2026, the Tribunal de Contas da União (TCU) approved a new model for public calls regarding railways in Brazil. This model is designed to facilitate the authorisation of previously unused segments of the Minas-Rio Corridor, which is part of the Ferrovia Centro-Atlântica network. The approval is significant as it allows the government to offer 733 kilometres of railway segments to private enterprises without requiring prior approval from the TCU for each project. This mechanism aims to streamline the process and encourage private investment in the railway sector.
Details of the Railway Segments Offered
The government plans to offer two distinct lots of railway segments: one comprising 626 kilometres and another of 107 kilometres. These segments will connect key locations, including Iguatama to Barra Mansa, Varginha to Lavras, and Barra Mansa to Angra dos Reis. The authorisation for these projects will be valid for 99 years, with a symbolic fee of R$ 1. This approach is intended to attract private investment by reducing the financial burden associated with the initial costs of railway construction and operation.
Implications for Future Railway Projects
The newly approved model is not only intended for the current offering but also serves as a framework for future railway projects in Brazil. It allows for a simplified authorisation process where private companies can build and operate new railways at their own risk. The model includes provisions for a two-year period during which companies can conduct viability studies to determine the financial feasibility of their projects. If a project is deemed economically unviable, companies may request public funding to cover the necessary costs, which will be subject to competitive bidding.
Recommendations and Considerations from the TCU
While the TCU approved the new procurement model, it also issued several recommendations to the Ministry of Transport and the ANTT. These include conducting thorough market studies to justify the symbolic R$ 1 fee, ensuring that any public funding proposals are reviewed by the TCU before contracts are signed, and detailing environmental licensing processes. The TCU emphasised the importance of addressing these concerns to ensure a smooth transition to the new authorisation framework and to maintain transparency and competitiveness in the railway sector.
IN NUMBERS
The TCU’s approval of this new model marks a pivotal step towards revitalising Brazil’s railway infrastructure and attracting private investment, which could lead to enhanced logistics and transportation capabilities across the country.
Reported from poder360.com.br, 2026-08-19. The Tender Wire is published by Otnox.
