Brazilian Rail Network Statement: A Tool for Fostering Rail Interoperability

Abstract

The Brazilian Rail Regulatory Framework was reviewed in 2011 by the National In Land Transport Agency (ANTT), with the edition of a package of Regulatory Resolutions (Resolution nº. 3,694 - Regulation of General Rules for Shippers and Rail Companies, Resolution nº. 3,695 - Regulation of Trackage and Haulage Rights, and Resolution nº. 3,696 - Regulation for Stretch Production Targets and Safety Targets Procedure Agreements) with the basic objectives of: i) create incentives for rail interoperability, ii) promote intra sector competition and, hence, enhance rail role in the national transport sector, and iii) establish new funding sources for the rail sector, in order to support investments needed for increasing rail system capacity. These, together with other structural measures already adopted by ANTT, such as the regulation of investments made by rail concessionaires and the revision of rail price cap rates, complemented the package of rail regulatory measures. For the effective implementation of the principles set out in the mentioned rail regulatory framework review, however, it was necessary to develop a sort of tools to allow regulatory control and reduce asymmetric information within the actors of this important industry. Among these tools, it is highlighted the Rail Network Statement, established by Resolution ANTT nº. 3,695/2011, basically composed of a compilation of the existing rail network main operational and technical data, such as rail gauges, load capacities, operational speeds, clearances, location of locomotives and wagons repair facilities as well as fuel stations, including an inventory of traffic capacity, with a survey of available capacity in all sections of the national rail network. This dataset was intended to reduce asymmetric information between rail industry players - Regulatory Authority, Rail Carriers and Shippers, and, so, enhance the negotiation processes for interoperability operations and investments agreements. Rail Network Statement must be filed annually by Concessionaires, and after a critical analysis and data review by the regulatory agency, it is released on its website for public access to support rail interoperability planning and negotiation process. This work is supposed to present an overview of Brazilian Rail Network Statement structure, with a Case Study Analysis of 2013 Edition, the first issued, with a strong focus on rail capacity analysis, an essential requirement for rail interoperability.