Vale commits $2.3bn for renegotiation of two Brazilian railway concessions
Brazil-based mining company Vale, along with the Brazilian National Land Transportation Agency and the Ministry of Transportation, have agreed upon the general basis for the renegotiation of the concession contracts for the Carajas Railway (EFC) and the Vitoria a Minas Railway (EFVM).
Brazil-based mining company Vale, along with the Brazilian National Land Transportation Agency and the Ministry of Transportation, have agreed upon the general basis for the renegotiation of the concession contracts for the Carajas Railway (EFC) and the Vitoria a Minas Railway (EFVM).
These railways are crucial for both passenger and cargo transport in Brazil.
The Carajas Railway, connecting Parauapebas in Para to Sao Luís in Maranhão, and the Vitória-Minas Railway, linking the Metropolitan Region of Vitoria to Belo Horizonte, are set to have their concession contracts extended until 2057.
This follows the additional terms established in December 2020.
The renegotiation under the existing concession contracts aims to modernise and update the railway services.
Vale has committed to a maximum global contribution of approximately $11bn reals ($2.3bn) for asset base reviews, contractual obligation optimisations, and investment replanning for both EFC and EFVM.