Brazil bets on railways to break its logistics curse

Brazil’s Transport Ministry is trying, once again, to redraw the country’s logistics map using steel tracks instead of asphalt. In late November, the government launched what it calls the first National Policy for Railway Concessions, coupled with a 2026 project pipeline that would add or restore more than 9,000 kilometers of cargo railroads and mobilize BRL 140 billion (USD 26.2 billion) in direct rail investment, with a total of BRL 600 billion expected to flow through the system over time.

The plan sets clear guidelines for planning, governance and funding, blending public money, private capital and new credit tools tailored with the National Development Bank (BNDES). 

Contracts are meant to include a detailed risk matrix, modern transparency requirements and federal guarantees, while the government will assume the responsibility for securing preliminary environmental licenses to reduce legal disputes and speed up construction.