Brazilian Transport Minister Renan Filho announced on November 25, 2025 the launch of a new freight railway franchise policy, introducing innovative financing models through public-private partnerships, which is expected to drive a total of 600 billion Brazilian reals in railway network investment. This major reform marks the acceleration of Brazil's infrastructure construction.

According to the new policy, the Ministry of Transport will grant the first batch of 8 railway franchise rights in 2027, covering over 9000 kilometers of new and existing railway lines. These projects will be launched in batches according to monthly plans: the Minas Rio Corridor will be launched in April, the Southeast Railway Loop will be launched in June, the Western Network will be opened in July, the East West Corridor will be launched in August, the Grain Railway will be launched in September, and three important corridors of the Southern Network will be launched simultaneously in December. In addition, the bidding process for the northern extension of the North South Railway will begin in December 2026.

The Ministry of Transport expects that the new policy will attract a direct investment of 140 billion reais, approximately 26.3 billion US dollars. The innovative financing model will allow for diversified funding sources, including real estate development, while BNDES is developing new loan tools specifically for the railway industry.

These railway projects will not only greatly improve the logistics and transportation efficiency in Brazil, but also create a large number of job opportunities. Taking the grain railway project connecting Sinop in Mato Grosso State to Itatuba in Para State as an example, the project alone is expected to create over 100000 job opportunities during the construction period. The Ministry of Transport emphasized that with the gradual release of franchise rights, the construction of the entire railway network will create tens of thousands of job opportunities. Keywords: International News and Information, International News Network

This series of measures reflects the Brazilian government's determination to promote infrastructure modernization through public-private partnerships, and also provides important opportunities for international investors to participate in Brazil's infrastructure sector. The new franchise policy has established a clear framework for project planning, management, and sustainability, which is expected to significantly enhance Brazil's railway transportation capacity and promote regional economic development.Editor/Cheng Liting