Commodities boom fuels railfreight renaissance

摘要

In the 1850s the then Brazilian Imperial government (1822-1889) tried to attract investment in the country's railways, finally guaranteeing a 7% yearly return on investment. But it placed restrictions on how much could be invested on a per-km basis, meaning lines were poorly built with steep gradients, sharp curves, and meandering main lines that were unable to compete with latter-day highways. By the 1950s the bankrupt railways had been nationalised and with losses mounting, a huge government entity was created to make good where private enterprise had failed. For the next 40 years the railway spent on investments and especially subsidies, but failed to provide the services that were required. In the 1990s the government decided to try again under private management in a final attempt to win back traffic and stop the drain on the Treasury.