The implementation of a bullet train between the cities of São Paulo and Rio de Janeiro was discussed again. This is because, last Thursday (2nd), TAV Brasil (Brazilian Company of High Speed Trains) signed a contract with the National Land Transport Agency (ANTT), which provides the authorization to make the constructions.
However, these projects face challenges and there is still reflection on the viability economical and financial part of it all. The work describes that the high-speed rail line between the two capitals will be 380 km long and is expected to open in June 2032.
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Authorization had already been given by the regulatory agency last month, following the model implemented by Law No. 14,273, which aims to streamline investments in the sector. Thus, this new law created the authorization regime, which reverses the old flow of operations, allowing that the private initiative presents the projects to be approved or not by the body responsible for the matter.
Bullet train in Brazil between São Paulo and Rio de Janeiro
The high-speed train project between São Paulo and Rio de Janeiro provides for 378 km of railroads connecting different cities between the two metropolises. According to those responsible for the project, the estimated travel time is only an hour and a half. With that, the average speed of the train would have to reach 350 km/h, one of the fastest.
Now it is up to the company to obtain licensing from the other competent bodies, to prepare engineering and feasibility projects socioenvironmental and seek funding to make the work viable. However, with a share capital of just R$100,000, the company will depend on investors to get the R$50 billion project off the ground.
According to the contract, the solution is to resort to “financing from pension funds, national and international investors, BNDES and multilateral credit agencies” to make this project possible.
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