{"id":96685,"date":"2025-11-24T12:52:02","date_gmt":"2025-11-24T15:52:02","guid":{"rendered":"https:\/\/murray.adv.br\/?p=96685"},"modified":"2025-11-24T12:52:02","modified_gmt":"2025-11-24T15:52:02","slug":"war-halts-fiol-and-completion-of-section-delayed-until-2031","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/war-halts-fiol-and-completion-of-section-delayed-until-2031\/","title":{"rendered":"War halts FIOL and completion of section delayed until 2031"},"content":{"rendered":"<section class=\"content--header\">\n<div class=\"row content-head non-featured \">\n<div class=\"medium-centered subtitle\">\n<h6 class=\"content-head__subtitle\" style=\"text-align: center\"><em><strong>The railway line crossing Bahia faces three stages of structural work; progress slowed by the impact of Russia\u2019s invasion of Ukraine<\/strong><\/em><\/h6>\n<\/div>\n<\/div>\n<div class=\"content__signa-share\">\n<div class=\"content__signature\">\n<div class=\"content-publication-data\">\n<div class=\"content-publication-data__text\">\n<div class=\"content-publication-data__from\"><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"content-publication-data__updated\">11\/24\/2025\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content__share-bar-container\">\n<div class=\"content__share-bar\"><\/div>\n<\/div>\n<\/div>\n<\/section>\n<div id=\"mc-article-body\" class=\"mc-article-body \">\n<article>\n<div class=\"no-paywall\">\n<div class=\"mc-column content-text active-extra-styles active-capital-letter\" data-block-type=\"unstyled\" data-block-weight=\"64\" data-block-id=\"1\">\n<p class=\" content-text__container theme-color-primary-first-letter\" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Even from 18,000 kilometers away, the war between Russia and Ukraine has stalled construction of the West-East Integration Railway (FIOL) in Bahia. In April, Bahia Minera\u00e7\u00e3o (Bamin)\u2014the company responsible for building the line\u2014suspended work on Section 1, which connects Caetit\u00e9 to Ilh\u00e9us. The company, controlled by the Eurasian Resources Group (ERG) and headquartered in Kazakhstan, has been heavily affected by the war\u2019s economic fallout.<\/p>\n<\/div>\n<div class=\"wall protected-content\">\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"50\" data-block-id=\"2\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">\u201cUnfortunately, Bamin faced a serious problem due to the war and ran out of resources to carry out [FIOL 1]. The government is treating this matter as a priority, and I believe it will be resolved,\u201d said Jorge Bastos, president of Infra S.A., at a\u00a0<strong>Valor<\/strong>\u00a0event in late October.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"58\" data-block-id=\"3\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Bamin declined to comment. However, at the end of October, company president Eduardo Ledsham addressed the issue during the opening of Exposibram, a mining congress held in Salvador. He confirmed that the company had been hit by the economic repercussions of the conflict and has since been seeking ways to raise the R$5.7 billion required to resume construction.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"50\" data-block-id=\"4\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">\u201cWe are working with three concrete proposals [from potential investors], all interested in an integrated project\u2014the mine, railway, and port,\u201d said Mr. Ledsham, noting that about R$4.8 billion is already secured through federal government credit lines. The remaining funds are expected to come from a new partner in the venture.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"89\" data-block-id=\"5\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The linchpin of the plan is the completion of FIOL 1, which, although currently suspended, is 62% complete, according to Mr. Ledsham. The new investor should be confirmed by early next year. However, the partnership\u2019s restructuring will require renegotiating the concession contract, as the company has requested an extension of the completion deadline from 2027 to 2031. \u201cIt\u2019s a natural process. A project of this scale demands adjustments to timelines and responsibilities, always in dialogue with the Ministry of Transport and ANTT [National Land Transport Agency],\u201d said the executive.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"62\" data-block-id=\"6\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Both Bamin and the federal government view the integration of rail logistics, agribusiness, and mining as key to the Northeast\u2019s economic transformation, linking the railway to other logistics corridors. Alongside FIOL, the Porto Sul project in Ilh\u00e9us, still on the drawing board, is seen as a strategic hub that could reduce freight costs by up to 40%, according to Mr. Ledsham\u2019s estimates.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"58\" data-block-id=\"7\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Bamin owns the Pedra de Ferro mine in Caetit\u00e9, which has an annual production capacity of up to 2 million tonnes of high-grade iron ore (65% concentration)\u2014a level that draws intense interest from international buyers. However, the company\u2019s ability to export depends on the completion of the FIOL railway, the essential link between the mine and export terminals.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"56\" data-block-id=\"9\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">According to Infra S.A. president Jorge Bastos, completing FIOL is strategically important because it connects mineral and agricultural production to the port system. \u201cFIOL 2 [Guanambi-Caetit\u00e9] is now in full swing. We\u2019ve resolved most of the bottlenecks and are putting nearly all sections out to tender to complete construction as quickly as possible,\u201d Mr. Bastos said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"63\" data-block-id=\"10\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Despite this optimism, an audit by the Federal Accounting Court (TCU) has identified \u201csignificant delays\u201d in project execution. \u201cAfter nine months of work\u2014out of a total contract term of 26 months\u2014only 3% has been completed, with no executive project approved and no construction stages initiated. This represents delays of nine months for design and four months for construction,\u201d the court reported in October.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"53\" data-block-id=\"11\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The TCU cautioned Infra S.A. that failing to take action against contractors who are not meeting deadlines or contractual obligations could constitute an oversight by the agency itself. However, it also recommended that each case be assessed individually. Currently, half of the 485 kilometers that make up FIOL 2 already have tracks installed.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"69\" data-block-id=\"12\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Meanwhile, FIOL 3, covering 840 kilometers between Mara Rosa (Goi\u00e1s) and Correntina (Bahia), remains in the planning phase. All FIOL sections are part of the East-West Railway Corridor, a project deemed strategic by the Ministry of Transport. The plan is to link FIOL with the Midwest Integration Railway (FICO) to create a logistics corridor for grain and ethanol transport from the Midwest to the Northeast and to international markets.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"20\" data-block-id=\"13\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The Ministry of Transport expects to launch the bidding process for the corridor\u2019s concession in the first half of 2026.<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">*By\u00a0Marina Lang\u00a0\u2014 S\u00e3o Paulo<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Source: Valor International<\/p>\n<p>https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The railway line crossing Bahia faces three stages of structural work; progress slowed by the impact of Russia\u2019s invasion of Ukraine &nbsp; &nbsp; 11\/24\/2025\u00a0 Even from 18,000 kilometers away, the war between Russia and Ukraine has stalled construction of the West-East Integration Railway (FIOL) in Bahia. In April, Bahia Minera\u00e7\u00e3o (Bamin)\u2014the company responsible for building [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26602],"class_list":["post-96685","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-war-halts-fiol"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>War halts FIOL and completion of section delayed until 2031 - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/war-halts-fiol-and-completion-of-section-delayed-until-2031\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"War halts FIOL and completion of section delayed until 2031 - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"The railway line crossing Bahia faces three stages of structural work; progress slowed by the impact of Russia\u2019s invasion of Ukraine &nbsp; &nbsp; 11\/24\/2025\u00a0 Even from 18,000 kilometers away, the war between Russia and Ukraine has stalled construction of the West-East Integration Railway (FIOL) in Bahia. 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