Transnordestina Railway in Pernambuco Could Generate R$4.7 Billion in Benefits, Study Finds
A study by the Superintendency for the Development of the Northeast (Sudene) indicates that completing the Transnordestina Railway section in Pernambuco, connecting Salgueiro to Suape Port, is technically, economically, socially, and environmentally viable. This segment alone is projected to generate R$4.7 billion in economic and social benefits for the state. The project, which has been stalled for a decade, saw its Pernambuco section initially removed but later reinstated. However, the Federal Court of Accounts (TCU) has suspended new financial commitments for the Salgueiro-Suape branch, pending proof of viability. Vice President Geraldo Alckmin stated that work could resume upon TCU approval. Sudene's study, conducted with input from industry federations and political representatives, aims to satisfy the TCU's requirements. The Transnordestina project began approximately 20 years ago, with only 179 of the planned 540 kilometers laid in Pernambuco since its 2016 halt. The study also highlights the need for a 73-kilometer segment between Custódia and Arcoverde. Using the Net Present Social Value (NPSV) indicator, Sudene calculated a positive NPSV of 15.5%, justifying the investment and predicting development along the railway's path, influencing up to 40% of the Northeast region. The railway could transport up to 24 million tons of cargo annually, benefiting sectors like mineral production, fruit farming, and animal protein, and integrating with the Abreu e Lima refinery. The completion of the Salgueiro-Suape stretch is estimated to create 13,000 direct construction jobs and 9,600 operational jobs, positively impacting the GDP of around 400 northeastern municipalities. The overall Transnordestina project spans 1,752 kilometers, linking Piauí to ports in Ceará and Pernambuco. While the Ceará section is slated for completion by 2027, Pernambuco's progress hinges on the TCU's decision. Sudene estimates R$5 billion is needed to finish the Pernambuco segment, potentially by 2030, and hopes the study will lead to the swift resumption of investments.
The Sudene study presents a compelling case for the economic and social benefits of completing the Transnordestina Railway's Pernambuco segment, framing it as a strategic national and regional development project. The analysis hinges on the positive Net Present Social Value (NPSV) calculation, which, if validated by the TCU, could unlock significant investment. The project's long history of delays and the TCU's scrutiny highlight the critical need for robust financial oversight and transparent governance in large-scale infrastructure initiatives. Future success will likely depend on demonstrating sustained economic viability beyond initial projections and ensuring efficient project management to avoid further cost overruns and delays, especially as the AI era necessitates more agile and adaptable infrastructure planning.
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