The Brazilian government has planned to offer, by the end of 2025, a concession for a 575 km freight project connecting the cities of Nova Iguaçu, in Rio de Janeiro state, and Santa Leopoldina in Espírito Santo.

The project is expected to require an investment of BRL 9 billion (US$ 1.6 billion). The EF-118 railway will be divided into three primary sections, with projected capital expenditures totaling BRL 4.6 billion and operating costs amounting to BRL 4.4 billion. An 80 km segment between Santa Leopoldina and Anchieta, both located in the state of Espírito Santo, will be constructed by local mining company Vale as part of its commitment tied to the early renewal of one of its existing rail concessions. This portion will be integrated into the Vitória-Minas railway (EFVM) network. The remaining 495 km of the railway will be developed under a new 50-year concession agreement.

To attract potential investors, the Brazilian government has made adjustments to the concession terms, including reducing the minimum per-kilometer concession payment for each train composition. This move is intended to make the project more financially appealing and competitive for bidders.