The President of the Republic, Jair Bolsonaro (PL), this Thursday (23) partially sanctioned the law establishing the new Legal Framework for Railways, which aims to bring several innovations that seek to facilitate private investments in the construction of new railways, in the use of idle stretches and in the provision of the rail transport service.
In a statement, the Ministry of Infrastructure stated that the Legal Framework “innovates by allowing the construction of new railroads by authorization, as is already the case in the exploration of infrastructure in sectors such as telecommunications, electricity and ports”.
It may also be authorized the exploration of stretches not implemented, idle or in the process of return and deactivation. Another innovation is the possibility for railway administrators to join together to create a self-regulatory entity, which will establish technical-operational standards without state interference, which will be limited to regulating safety issues and specific situations.
The New Legal Framework also allows current concessionaires, if they are harmed by the entry into operation of an authorized railway or if they commit to expanding the service, to migrate to the new legal authorization regime. This migration will not affect the obligations contained in the current contracts regarding investments and maintenance of passenger transport.
On public railways, the law facilitates the return of stretches that are not of interest to the concessionaire so that they can be made available to third parties interested in obtaining authorization to operate the service.
vetoes
On the other hand, some provisions approved by Parliament were vetoed. The president removed documentary requirements defined as not essential to obtaining authorizations, in addition to the provision that established preference for current concessionaires in obtaining authorizations in their area of influence.
“Different treatment for current operators would make it difficult for new providers to enter and, consequently, would reduce competition in the sector,” explained the Ministry. “In addition, this rule would represent an offense to equality between current dealers and potential new entrants to the market.”
Provisions that were in conflict with the Budget Guidelines Law were also vetoed.
“It was also considered that the amendment to art. 58 of Law No. 10,233 of 2001, would demand a bill initiated by the Executive Branch. That’s why this section of the Bill was also vetoed”, says the Ministry.
Finally, it was decided to veto the validity clause so that the new law will come into force within forty-five days after its publication, which will be published in an extra edition this Thursday.
Reference: CNN Brasil
