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Transnordestina Challenges for Completing the Brazilian Railway

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The Transnordestina Railway is a federal highway being built across Brazil's sertão, making it a bold and challenging undertaking. This grand and valuable project began in 1998 and is expected to be completed by 2027, if the project continues at this pace.

This megaproject, demonstrated track by track, is taking shape. Three years ago, the Federal Audit Court (TCU) decided to halt construction. In August and September of last year, construction resumed, with the goal of making the Northeast the Brazilian export hub for iron ore and grains.

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Desafios Da Transnordestina Para A Conclusão Da Obra Brasileira 16 de abril de 2020

The challenges of the railway

The railway section is already concentrated between Ceará and Pernambuco, which will ultimately connect Brazil. Construction is scheduled for completion in 2027, and will bring significant growth to the sertão and significant development.

The scale of the project will significantly boost the local economy and employment, despite the region's precarious employment situation. The project is financed by federal government contributions, including the BNDES (Brazilian Development Bank) and the FNDE (National Development Fund).

The highway extension is expected to be 1,753 km long, of which 600 km have already been completed. Just as the project is gigantic, so is the cost, reaching R$13 billion. With funding injected since 1998, R$6.8 billion is still needed to complete it.

Although the government has been seeking to resume and invest in the completion of the project for years, the process is still slow and the challenges of the current scenario do not help this resumption.

It's not solely up to the government; the crisis has affected the completion process, and the amount to be invested exceeds the budget. Completing the project requires external resources, along with an economic, technical, and environmental perspective, which would require private sector investment.