The Brazilian railway sector, historically challenged by inadequate infrastructure, bureaucratic hurdles, and an overreliance on road freight transport, has long needed a regulatory framework to unlock its true potential. Statute #14,273 of December 23, 2021, governing rail transport, represents a watershed moment. Known as the “New Railway Statute,” it emerged from extensive debate in the National Congress with a promise to modernize the sector's legal foundations, attract substantial private investment, and spur the development and expansion of the national rail network.
This statute, which amended provisions of Decree-Statute #2,848/1940 (the Brazilian Penal Code) and Statute #10,233/2001 (which restructured land and water transport and created the ANTT), and which repealed Statute #11,772/2008, introduces an authorization regime for railway operation. This new system runs parallel to the traditional concession model. This shift is the cornerstone of the new policy, designed to reduce bureaucracy for new entrants and encourage private investment in new rail lines without the need for costly and lengthy public tenders.
Historical Context
Brazil is a continent-sized country with an economy heavily reliant on commodity exports, yet it paradoxically has an underdeveloped railway network relative to its potential. Most existing railways date from the 19th and early 20th centuries, primarily focused on moving goods to ports. Operated under a concession model, they have attracted some investment but have not enabled the robust, competitive expansion needed.
The previous model, regulated mainly by Statutes #10,233/2001 and #11,772/2008, placed the expansion of the rail network under the Federal Government's control. The government would then grant operating rights to the private sector. This process was slow, expensive, and often dependent on scarce or redirected public resources. The result was a logistical bottleneck that raises freight costs, hurts the competitiveness of Brazilian products abroad, and contributes to highway congestion, leading to higher costs and environmental and social impacts.
The perception grew that a more agile, private-sector-driven model was necessary, given the state's inability to provide the resources and infrastructure for rapid network growth. Inspiration came from successful models in other countries, such as the United States, where a licensing system is predominant. The core idea was to allow companies that needed a railway for their own operations to build and operate it themselves, without state intermediation and obstacles at every stage. This vision culminated in the drafting of Statute #14,273/2021.
The Pillars of the New Legal Framework
Statute #14,273/2021 is structured into several sections, addressing everything from the general principles of rail transport to regulation, financing, and penalties. Its main pillars can be categorized as follows:
Authorization Regime vs. Concession Regime
The major innovation is the introduction of an authorization regime for the construction, development, and operation of railways and related infrastructure. This system coexists with the traditional concession regime, which remains valid for existing contracts and for future large-scale projects the government deems strategic and requiring more robust state planning.
Authorization Regime
Concession Regime
Infrastructure Sharing and Right of Way
To ensure efficiency and maximize infrastructure use, the law establishes railway sharing mechanisms.
Facilitation of Expropriations and Environmental Licensing
Railway construction requires large tracts of land, historically hindered by complex, slow expropriation and environmental licensing. Statute #14,273/2021 seeks to simplify this:
Expropriation
1. The statute maintains the Union's power to declare areas necessary for railways as being of public utility, enabling expropriation.
2. Under the authorization regime, the authorized company can request the Government to conduct the expropriation on its behalf, bearing all costs and compensation, speeding up the process.
3. It establishes guidelines for fair and prior compensation, providing legal security for landowners and investors.
Environmental Licensing
1. The law seeks better integration between environmental agencies and the transport sector for faster licensing without compromising standards.
2. It promotes simplified procedures and concurrent licensing with other project phases, aiming to reduce total implementation time.
3. It encourages technologies and practices that minimize environmental impact.
Flexibility of Gauges and Technology
The Brazilian rail network has different rail gauges (distance between rails), hindering integration and continuous traffic. The new statute paves the way for modernization:
Accident Prevention and Inspection
Operational safety is a priority, with the law reinforcing ANTT's oversight role.
Transitional Provisions and Repeals
How the New Law Could Change the Railway Landscape in Brazil
The “New Railway Statute” is not a mere a regulatory change, it is a strategic bet to transform Brazil's transport and logistics matrix. Its positive impacts are wide-ranging:
Promoting Private Investment
This is the statute’s primary objective. By allowing the private sector to build and operate railways without complex tenders, the government hopes to unlock billions in investment.
Current Status of the Railway Network
With new investment incentives, significant expansion is expected from the current network of approximately 31,000 km, about 11,000 km of which is idle or deactivated. Recent studies by the Federal Audit Court (TCU – Tribunal de Contas da União) indicate a deeper problem:
– 64% of the network is underutilized (with over 70% idle capacity);
– 44% has idle capacity exceeding 90%, operating only symbolically or being in a state of deterioration.
Reducing Logistics Costs and Increasing Competitiveness
Rail transport is more efficient and cheaper than road for large volumes over long distances.
Relief for Highways and Environmental Benefits
Shifting cargo from roads to railways has direct positive impacts:
Regional Development and Job Creation
Building and operating new railways creates a virtuous cycle:
The Role of ANTT and the Challenge of Regulation
ANTT, as the regulatory agency, will play a central role in the implementation and oversight of the new statute.
The Rio de Janeiro – São Paulo Railway Line
The idea of a high-speed rail link between Rio de Janeiro and São Paulo, Brazil's two largest cities, is not new. It symbolizes the desire to modernize infrastructure while also illustrating the complexities of such major projects in Brazil.
History and Obstacles of the Brazilian High-Speed Rail (TAV).
The best-known project for this connection was the High-Speed Rail (TAV – Trem de Alta Velocidade), often referred to as the “Bullet Train”. Conceived in the 2000s and intensely debated in the 2010s, the high-speed rail project promised to cut travel time to about 1 hour and 30 minutes at speeds up to 350 km/h, revolutionizing passenger transport in the country's main economic region.
Obstacles included (i) extremely high cost, (ii) questions of economic viability, (iii) geographical complexity, (iv) political and economic instability, and (v) shifting government priorities.
The Return of the Rio de Janeiro – São Paulo Railway Project
Under Statute #14,273/2021, a private company or consortium does not need to wait for a government tender to propose and build a railway. If there is interest and viability, a private group can request authorization from ANTT directly.
The new rules allow the applicant to define the railway type (freight, passenger, mixed), technology, and business model. This opens the door to more pragmatic and financially viable solutions than the original TAV.
Furthermore, it is ideal for companies with a direct interest in transporting passengers (tourism, business) or specific cargo between the two cities. For instance, a large transportation or logistics group might see value in a rail corridor between the country's two largest markets.
In this context, the Brazilian federal government signed an agreement with the company TAV Brasil in 2023, granting it a 99-year term for the construction and operation of a high-speed train between Rio and São Paulo. In March 2025, TAV Brasil's CEO, Bernardo Figueiredo, announced that construction would begin in 2027, with operations starting in 2032. The proposed 417-kilometer route would require an estimated investment of 60 billion BRL. The project was in the final phase of the Technical, Economic and Environmental Feasibility Study (EVTEA – Estudo de Viabilidade Técnica, Econômica e Ambiental), necessary for obtaining the required licenses.
According to Figueiredo, the full journey would take 1 hour and 45 minutes at speeds up to 320 km/h, with a fare of approximately 500 BRL (lower for intermediate cities). Planned stations include Rio de Janeiro, Volta Redonda, São José dos Campos, and São Paulo.
The company claims the project could add 168 billion BRL to Brazil's GDP, generate 36 billion BRL in taxes by 2055, and create around 130,000 jobs.
However, in November 2025, the executive noted a delay in environmental licensing due to workload overload at Ibama (the Brazilian Institute of the Environment and Renewable Natural Resources), where Growth Acceleration Plan (PAC – Plano de Aceleração do Crescimento) projects were prioritized, and the TAV, which will be built with 100% private sector funding, was not included in the PAC. He emphasized the importance of government support, including prioritizing its licensing.
The next two years will be crucial in determining this project's success and in refining the assessment of how the new law is promoting the expansion of Brazil's rail network.
