Port of Santos is goingo to benefit from logistic expansion of railway

The 12 locomotives that arrived are of the ES-43BBI model, one of the most modern in the country today (Gil LeonardI/ Imprensa MG)

VLI has acquired 12 new ES-43BBI locomotives to expand the logistical capacity of Ferrovia Centro-Atlântica (FCA), the largest railway in Brazil. The vehicles were purchased from Wabtec Brasil for R\$ 300 million.

To understand the importance of this corridor for the flow of export and import products, in 2023, FCA and Ferrovia Norte-Sul (FNS), both under VLI’s management, transported 43.8 billion ton-kilometers (TKU) combined. Of this total, 43 million tons were handled at Brazilian ports, with 13 million tons at the Port of Santos.

Nicolas Szwako, VLI’s Southeast Corridor Operations Director, stated in a note that the company is investing in expanding the cargo transport capacity of FCA “to meet the current and future demands of our clients, who generate wealth in the country”.

“By promoting railway cargo transport, we create positive impacts on the environment, the national economy, and Brazil’s export agenda”, he added.

The expansion of FCA’s capacity and logistical efficiency is one of the projects under the early renewal of VLI’s concession for another 30 years, which is currently in progress with regulatory agencies. “A 30% to 40% increase in cargo movements is expected, considering all the flows that make up FCA (not just the Southeast Corridor), during the new concession cycle”.

FCA’s lines are the main integration route between the Northeast, Central-West, and Southeast regions, connecting seven states and the Federal District. VLI also manages the Northern Section of FNS, as well as integrative terminals for the loading and unloading of products located in São Luís (MA), Barra dos Coqueiros (SE), São Gonçalo do Amarante (CE), Vitória (ES), and Santos.

Tiplam FCA serves the Baixada Santista through its Southeast Corridor. At the Port of Santos, VLI operates the Terminal Integrador Portuário Luiz Antônio Mesquita (Tiplam), which is a private use terminal (TUP) handling soybeans, corn, sugar, and fertilizers.

In 2023, Tiplam handled 13 million tons, a 12% increase compared to the previous year.

According to Nicolas Szwako, “Tiplam has substantial infrastructure for product storage, loading, and unloading of trains and ships,” and “its export operations are 100% carried out by rail”.

Land access However, civil engineer specialized in Transport Engineering and columnist for A Tribuna, Luis Montenegro, stated that logistical efficiency depends on access, which, in the case of the Port of Santos, urgently requires investment. “Land access is a major bottleneck, perhaps even more important than maritime access”.

Currently, according to the Port Authority of Santos (APS), the Internal Railway of the Port of Santos (FIPS) handles 51 million tons per year, with a target of increasing this to 115 million tons/year. For this, the concessionaire of the track, Associação Gestora da Ferrovia Interna do Porto de Santos (AG-FIPS), will need to invest R\$ 1 billion in infrastructure over five years.

However, Montenegro estimates that, with the progressive annual growth in the port complex’s traffic, further investments will be needed. “With these investments, the Port should achieve a rail capacity of around 110 million tons/year, in addition to the 110 million tons transported by road. This totals 220 million tons per year. Considering that the Port’s traffic grows at an average rate of 5% per year, this capacity will be exhausted in just a few years”.

Renewal The expansion of FCA’s capacity and logistical efficiency is one of the projects under the early renewal of VLI’s concession for another 30 years, which is currently in progress with regulatory agencies. A 30% to 40% increase in cargo movements is expected, considering all the flows that make up FCA.