The importance and potential of authorized railways in Brazil
- petrocity
- Oct 2
- 3 min read
Brazil is experiencing a decisive moment in the consolidation of a new railway model: the authorized railways. Created under the 2021 regulatory framework (Law No. 14.273/21), these railways introduce an environment of greater flexibility, agility, and increased participation of private capital in transport infrastructure.
This represents a historic milestone for a country that, for decades, has operated with an imbalanced logistics matrix, excessively dependent on road transport.
It is essential to understand that this is not merely about expanding Brazil’s infrastructure — it is about transforming the way we think about the internal movement of goods and passengers across the country.
For decades, railway transport was considered a complementary mode. Today, in the face of logistical inefficiency and high road transport costs, it must be treated as a strategic mode, capable of structuring new national integration corridors.
Currently, more than 60% of cargo in Brazil is transported by road, which results in high logistics costs, greater pollutant emissions, and increased vulnerability over long distances.
Authorized railways have the potential to reverse this scenario, introducing new railway corridors and balancing the country’s transport matrix. By allowing private companies to plan, finance, build, and operate railway sections, the model creates space for billion-dollar investments in regions that were previously underserved.
Authorized railways also pave the way for a new chapter in passenger transportation. Brazil — which once had an extensive medium- and long-distance railway network — abandoned this mode in favor of road transport. The result has been overloaded highways, increased transportation costs, more accidents, and significant road deterioration.
With the new regulatory framework, opportunities now emerge for the development of regional and medium-distance trains, connecting urban centers and reducing dependence on interstate bus travel.
In addition to providing safety and comfort, passenger rail transport represents social inclusion and efficiency. Populations in mid-sized cities and rural regions will have access to a reliable, sustainable, and competitive means of transportation.
One of the greatest strengths of authorized railways is their ability to expand economic activity and mobility inland, connecting production areas and smaller cities to consumer hubs, regional centers, and ports across the country. This not only reduces logistics costs, but also creates jobs, stimulates local supply chains, improves quality of life, and integrates productive regions.
Another crucial aspect is their contribution to decarbonization. Rail transport emits significantly less CO₂ per ton-kilometer than road transport. Therefore, every kilometer of railway built represents not only logistical efficiency but also a major environmental improvement.
Brazil, which has made international commitments to reduce emissions, finds in authorized railways an effective pathway aligned with ESG policies and the global effort toward energy transition — one that is marked by tangible results rather than mere publicity.
A decisive step in strengthening the authorized railway model was the creation of FRENFER (Parliamentary Front for Authorized Railways) in the National Congress. The establishment of this front brought greater political representation and opened space for ongoing debate on the role of railways in balancing the transport matrix, ensuring that the topic remains permanently on the legislative agenda.
Another milestone was the Federal Government’s public endorsement of this new model, signaling institutional trust and legal security for private investment. The combination of these two developments — political support and executive recognition — has consolidated the regulatory environment and positioned authorized railways as key players in a new era of logistics in Brazil.
Brazil urgently needs to shift its perspective on the internal movement of goods and passengers. Authorized railways should not be seen merely as alternatives, but rather as central instruments for modern, sustainable, and competitive logistics and mobility.
More than just a new regulatory framework, they represent a vision for the future — one that will enable the country to overcome historical barriers and establish itself as a global logistics and social powerhouse.
José Roberto Barbosa da Silva is the CEO of Petrocity Railways and President of the Brazilian Association of Authorized Railways (Abrafa).
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