Brazil’s transport ministry has authorized the concession grant plan for the EF-118 railway (Southeast Railway Ring), to connect the states of Rio de Janeiro (RJ) and Espírito Santo (ES), which is expected to generate investments of BRL6.6 billion (US$1.2 billion).

The project’s main parameters include an estimated total investment of approximately US$1.2 billion and a railway extension of up to 575 km, linking the states of Rio de Janeiro and Espírito Santo. The line is designed to integrate with strategic logistics hubs, with particular emphasis on connections to major ports such as the Port of Açu. The concession auction is expected to take place in June 2026, and the project will be implemented in phases, consisting of a priority stage followed by a second phase subject to demand conditions and economic feasibility. Rather than functioning as a standalone corridor, the railway has been conceived to interface with existing transport infrastructure, enabling a more efficient and integrated freight circulation network. The project is a rail connection between Nova Iguaçu, in the state of Rio de Janeiro, and Santa Leopoldina, in Espírito Santo. Santa Leopoldina is identified as a strategic node within the alignment, as it enables direct integration with two major existing railway systems: the Vitória–Minas Railway (EFVM), operated by Vale, and the Southeast Railway Network (MRS). This connectivity enhances the project’s role within the national rail system by facilitating interoperability with established freight corridors.

The Port of Açu, located in São João da Barra (RJ), plays a central role in the project’s priority phase and is explicitly identified as a key port reference within the overall planning framework. Its importance is particularly evident in the first stage of implementation, which directly links the port to Espírito Santo. In practical terms, the Port of Açu serves as a driving force behind the project, as it lies along the priority segment of the railway, forms part of the designed integration with larger national rail networks, and supports the project’s core cargo drainage rationale, one of the main justifications for the railway’s development. The EF-118 railway has been designed for implementation in phases. Stage 1, identified as the priority phase, represents the most critical segment of the project. This initial phase comprises approximately 246 km, connecting São João da Barra (RJ) to Santa Leopoldina (ES), and explicitly incorporates the logistics area of the Port of Açu. The expected timeframe for completion of this section extends up to 2035. Stage 2 is contingent on market conditions and feasibility assessments. This phase would extend the railway from São João da Barra to Nova Iguaçu and will be evaluated only after the commencement of the first phase of the concession. Its implementation depends on demonstrated transport demand and economic viability. A significant component of the project is the Anchieta Branch, which is defined as an approximately 80-km rail connection linking Santa Leopoldina to Anchieta, in Espírito Santo. This branch is considered essential for ensuring the effective integration of the new railway with the Vitória–Minas Railway (EFVM).

The key timeframes for the project are as follows: the concession auction is expected in June 2026, and the priority section of 246 km is projected to be completed by 2035.