The length of the Brazilian railway system is approximately 30,000 kilometers (18,641 miles). Primarily, it is used to transport ores. Due to logistical, economic, or political obstacles, the railway sector in Brazil was typically treated secondarily.
Between 1875 and 1920, the Brazilian railroad system underwent significant expansion. The Getlio Vargas administration, which prioritized the road modal, ended the rail modal's golden age. The railway network was already experiencing a number of issues in the 1940s, including inefficient layouts and locomotives with low power. The National Railroad Network (RFFSA), a state-owned company founded in 1957, began managing 18 Union railroads. Under the pretense that the state would invest in new projects, several deficit railways were shut down. Until the market opened in 1990, the actions were centralized within the government. As a result, the National Privatization Plan was implemented with numerous concessions. América Latina Logstica (ALL), Vale S.A., and MRS Logstica were the three major business groups that ended up concentrating the railways. Productivity increased as a result of the renovation (cargoes transported increased by 30% along the same railway line). However, the main issue was that the reform also ended geographical exclusivity and the railway line. As a result, the existing network's expansion and renewal were prevented from receiving competitive incentives. Due to the State's total monopoly of power over this sector, the opening of new railways was a difficult, slow, and bureaucratic process. As a result, the railways did not expand further in the country and were extremely out of date.