The EF-118 project marks a pivotal moment in Brazil's railway landscape as it represents the first structured project under the new railway policy. The contract and bidding documents recently submitted to the Court of Accounts (TCU) are set to establish standards for future railway contracts in the country. This project includes the construction of a railway line connecting Santa Leopoldina (ES) and São João da Barra (RJ), and potentially extending to Nova Iguaçu (RJ), thereby integrating existing segments of the EF-103 line while also providing cargo transportation services.

As a public-private partnership (PPP), the EF-118 project involves significant public investment of R$ 5.2 billion, which will be allocated throughout the construction phase. This funding may come directly from the government or through cross-investments from concessionaires renewing their contracts between 2020 and 2025. Despite the potential benefits of the project, there are concerns about its fiscal implications, particularly regarding the visibility of these effects in the context of public finances.

Overall, the EF-118 initiative is crucial not only for enhancing Brazil's transport infrastructure but also for setting a precedent in the management of future railway projects. By aiming to streamline operations and encourage private sector involvement, it could lead to increased efficiency and innovation in Brazil's rail transport system, but it will require careful oversight to manage public resources and meet the intended fiscal objectives.