WORLD 🔗 Part of: Global Economic Trends (32) · 08 Sep 2026 · 05:22 GMT ·2 min read

Brazil Launches New Public Call Model for Minas-Rio Railway Corridor Auction

The Brazilian Ministry of Transport will auction the 733-kilometer Minas-Rio railway corridor on December 17, 2026.

NEUTRALITY 80 · BALANCED· 2 sources

CNN Brasil

The Brazilian Ministry of Transport will auction the 733-kilometer Minas-Rio railway corridor on December 17, 2026. This event is the first railway auction in the country in five years. The project uses a public call model approved by the Federal Court of Accounts on August 19, 2026. Winners have two years to conduct feasibility studies. If a project proves unviable, companies may seek state funding through the PREC program. This triggers a secondary auction on the B3 stock exchange to determine the lowest required government contribution.

Context

Ferrovia Centro-Atlântica operates the 733-kilometer Minas-Rio railway corridor. Brazil held its last federal railway auction on April 8, 2021, for the FIOL Trecho 1 project.

Supportive perspectives

The Federal Court of Accounts vetted the model and approved the public call framework on August 19, 2026. Poder360 reported that this approval confirms the framework meets federal standards. The National Land Transport Agency issued the notice on August 27, 2026.
The new model mandates a two-year feasibility study. Companies calculate the project's Net Present Value during this window. They must complete this assessment before committing to full construction. This process reduces risk by verifying project viability before large capital outlays.
The initiative ends a five-year hiatus in federal railway auctions. The government awarded the last concession on April 8, 2021, for the FIOL Trecho 1. Officials now seek to modernize the 733-kilometer corridor. Ferrovia Centro-Atlântica currently operates that line.
The Project for Recapacitation, Recovery and Modernization of Railway Infrastructure supports projects considered unviable. The government auctions these projects on the B3 stock exchange. This process selects the entity requiring the lowest state contribution to limit public spending, as reported by Poder360.

Critical perspectives

The public call model replaces traditional bidding. Companies face uncertainty during the two-year study phase. This project marks the first use of this format in Brazil. No performance record exists for this approach.
Companies entering the secondary auction must compensate the original proponent for feasibility study costs. This requirement creates financial barriers for potential bidders. Smaller firms may struggle to absorb these initial expenses, market analysts report.
The last federal railway auction occurred on April 8, 2021. No federal auctions have taken place since that date. The government is using a new, untested model for the Minas-Rio corridor. The framework's ability to sustain long-term investment remains uncertain.
Brazilian media outlets report the government's perspective on the auction model. These reports omit comments from opposition lawmakers, rival bidders, or independent infrastructure analysts regarding the untested 'chamamento público' format.