Brazil to Unveil R$262.6 Billion Road and Rail Concession Plan

Brazil's Ministry of Transport will present this Thursday, October 15, at B3's headquarters in São Paulo, a portfolio of 29 road and rail concession projects planned for 2027, with estimated investments of R$262.6 billion. The package includes 11 road contracts totaling R$102.68 billion, and 18 rail projects with a forecast of R$160 billion. The announcement will be made by the Minister of Transport, George Santoro.

At the same event, the government will launch the National Connectivity Policy for concessioned federal highways, in coordination with the Ministry of Communications. The initiative aims to expand internet access and digital technologies along highways, with a focus on road safety, emergency response, traffic monitoring and cargo theft prevention, as well as improving communication regarding accidents, road closures and adverse weather conditions.

According to Agência iNFRA, the 2027 portfolio introduces a novelty compared to previous tenders: provisions for direct public contributions in some contracts. Among the eleven road projects, the most notable case is the BR-101 in southern Bahia, where a government contribution is planned from the start of the contract to keep toll rates viable. Also included are the new concession for the BR-393 in Rio de Janeiro, two projects in Rio Grande do Sul and three in Santa Catarina, among other stretches that had already been scheduled for tender this year.

In the rail segment, eight of the 18 projects had already been scheduled for tender this year, in a sector that has seen no concessions since 2021. The most advanced is the EF-118, which would connect Espírito Santo with Rio de Janeiro, while Ferrogrão and the Malha Oeste await rulings from the Tribunal de Contas da União regarding the use of linked accounts, a key issue for the economic viability of these projects. Also included are the Malha Sul, the Leste-Oeste Corridor and the northern extension of the Ferrovia Norte-Sul, while the Minas-Rio Corridor, the first public rail tender, already has an auction scheduled for December 17, 2026.

Agência iNFRA also reported that Santoro will announce a roadshow with investment funds in London following the runoff election, aimed at promoting infrastructure debentures among foreign institutional investors. Currently, there are 39 active federal road contracts, with contracted Capex of R$264 billion and Opex of R$190 billion, and it is estimated that with the new tenders the portfolio will reach R$500 billion in works to be carried out over seven years.