The Rede Ferroviária Federal, Sociedade Anônima (RFFSA, pronounced as Refesa) (lit. 'Federal Railroad Network, S.A.') was the State-owned national railway company of Brazil created from Brazilian Federal Law #3.115 on March 16, 1957, after several railroads were nationalized by the Brazilian government. However, the railroad did not take full effect until September 30, 1957. The RFFSA linked 42 railways together (both on documents and actual railroads), creating a regional system composed of 22 railroads. The goal of the RFFSA was to promote and advance the railroad sector of Brazil, creating a north-south-east-west rail network in all five regions of Brazil. But it failed and the RFFSA only served four of the five regions with a north-south rail network win 19 units of the federation of Brazil. By 1999, freight service of the railroad was liquidated and privatized, with the passenger service of the railroad liquidations occurring in 2007.
Federal Authority
According to Article 7 of Law #3.115 which created the RFFSA, the company was given the following powers for the operation of the railroads:
The following powers were given to the RFFSA from Law #6.171 in 1974
- The company must manage, operate, maintain, refurbish, expand, improve and maintain traffic on the railways it built.
- Introduce (at face value) bearer bonds of its own issue or the issue of the companies that will be organized with a limit of two for paid-in capital, with or without a guarantee from the Treasury.
- Subscription of capital from companies under its control and the consent to grant them loans or guarantees.