Brazilian Rail Freight Rates May Fall as Much as 40% With New Regulations
Brazil rail freight rates may fall as much as 40 percent as a result of new rules the government plans to introduce through a presidential decree by the end of July, said the country’s land transportation agency, ANTT.
“We’re opening alternative rail corridors in the most critical areas and creating a more competitive environment,” Bernardo Figueiredo, head of ANTT, said in an interview in Brasilia yesterday.
President Luiz Inacio Lula da Silva is expected to sign a decree by the end of the month to change rules governing the rail industry, Figueiredo said. The new plan may lead to 5,000 kilometers (3,107 miles) of new railway lines by 2011, he said.
Vale SA, MRS Logistica SA and ALL America Latina Logistica SA are among the main railroad operators in Brazil. The government plan will require those companies to allow the use of their railways by other groups, under a toll charge, Figueiredo said.
The plan will also require idled railways to be put back into operation. According to ANTT, only 10,000 kilometers of Brazil’s 28,000 kilometers of railways are currently in use.
To contact the reporter on this story: Carla Simoes in Brasilia Newsroom at csimoes1@bloomberg.net
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