Brazil deploys billions in new railway projects to spur logistics and industry

President Luiz Inácio Lula da Silva announced an additional R$600 million from the Northeast Development Fund (FDNE) for the Transnordestina railway, bringing total FDNE allocations to R$7.4 billion for the project that aims to link the northeast’s agricultural and industrial zones with ports such as Pecém. The line, budgeted at about R$15 billion, is 82 % complete in its first phase and targets full completion by 2029, with around 5 000 jobs tied to its construction.

Separately, the EF‑118 railway – a new corridor connecting Rio de Janeiro and Espírito Santo – is being promoted as a catalyst for Brazil’s next phase of industrialization. By linking the country’s main oil‑and‑gas production area to major consumer markets and existing rail networks, the line is expected to lower transport costs, reduce reliance on imported fertilizers and stimulate investments in petrochemical and other high‑value sectors.