BRAZIL's planned 575km EF-118 new railway concession has attracted four bidders providing a significant vote of confidence in what will become the country's first modern greenfield freight railway concession and a key test of the private sector’s appetite for large rail infrastructure investment projects.
Unlike the numerous concession renewals and brownfield projects currently progressing through Brazil's rail concessioning programme, EF-118 is the first railway to be developed from scratch under the country's new concession model. The project is expected to require between $US 1.2bn and $US 1.6bn in initial private investment, with total commitments increasing over the life of the concession, making it one of the sector's most challenging infrastructure opportunities.
According to Valor Econômico, the four groups preparing bids comprise Vale, logistics operator VLI, a consortium involving Cedro Participações and Petra Gold, and a fourth unnamed consortium backed by international investors. Their participation addresses market concerns that the scale of the required capital investment could deter private operators from competing for the concession.
The new railway will connect Nova Iguaçu, northwest of Rio de Janeiro, with Espírito Santo state, creating a strategic freight corridor serving the ports of Açu and Ubu east of Anchieta as well as steel, agricultural and container traffic. The line forms part of Brazil's Southeast Rail Belt and is intended to strengthen logistics capacity in one of the country's busiest industrial regions.
The government expects the project to go to auction later this year, although other planned railway concessions have been pushed back to 2027 to allow additional project preparation and review by the Federal Court of Accounts (TCU).
Transport minister Renan Filho said the government wants to establish a pipeline of railway concessions capable of attracting long-term private investment and expanding Brazil's freight network.
Interest in EF-118 contrasts with the scepticism expressed by investors when the project was first presented last year, when questions centred on construction risk, financing and whether traffic would justify a new railway of this scale.
Vale concessions impasse
Meanwhile, negotiations between mining company Vale and the Brazilian government over the renegotiation of the Carajás Railway (EFC) and Vitória a Minas Railway (EFVM) concession contracts remain at an impasse.
The talks collapsed in August 2025, when Vale, the Ministry of Transport and Brazil’s National Land Transport Agency (ANTT) failed to meet a court-mediated deadline to conclude negotiations over revisions to the concessions, which were extended until 2057 in 2020. Since then, discussions have continued but no final agreement has been reached.
According to BNamericas, citing people familiar with the negotiations, disagreements remain over the final financial terms and structure of the renegotiation, preventing the agreement from being submitted to the Federal Court of Accounts (TCU).
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