‎Brazil News

 

 

Share: Share via Facebook Share via TwitterLink to Copy to Clipboard

Posted on 04/04/2022 17:19

Federal Government launches truck recycling program

The program is a Federal Government initiative aimed at vehicle recycling, increasing productivity and logistical efficiency. - Photo: Min. Economy

 

Trucks, buses and other heavy-duty vehicles over 30 years of age, or in technical conditions that do not meet the minimum parameters for driving, may be withdrawn from circulation by joining the Renovar Program, created by Provisional Measure nº 112, published in Friday (01/04) in the Official Gazette. The program is a Federal Government initiative aimed at vehicle recycling, increasing productivity and logistical efficiency.

 

The first phase of the program will target trucks, buses and road implements (trailers, bodies, etc.) at the end of their useful life. Initially aimed at owners of heavy goods vehicles (individuals or legal entities), the Renovar program aims to enable the recycling of end-of-life vehicles.

 

At first, the program will promote the repurchase of the truck to be scrapped, for which the truck driver will be paid the market value of the vehicle, with funds from companies contracted for the exploration and production of oil and natural gas.

 

The definition of the minimum age for eligibility of vehicles to be dismantled or destroyed as scrap will be made by the Management Council of the Program, through an ordinance of the Special Secretariat for Productivity and Competitiveness of the Ministry of Economy (Sepec/ME). The age of 30 years for trucks and 20 years for buses and road implements was used in the initial formulation of the program, based on consultations with the private sector. In 2020, there were 854,244 trucks in Brazil and 75,943 tractor trucks over 30 years old (year of manufacture until 1989), according to the National Traffic Department (Denatran).

 

Accession

Sepec Ordinance, yet to be published, will define the flow for voluntary adhesion of the truck driver to the program, which will take place through the Renovar Platform. All steps for vehicle eligibility and its scrapping will be carried out by the platform, with a view to reducing the truck driver's transaction costs.

 

Joining the program is completely voluntary. Those interested in canceling their trucks, buses or road implements and joining and participating in Renovar must prove the definitive cancellation of the registration of the eligible asset and its dismantling or destruction, as scrap.

 

The Renovar program can be implemented in phases, and in the initial stage, the benefits will be directed primarily to the Autonomous Cargo Carrier (TAC). It is an initiative that integrates public-private actions, following a logic of shared construction, in a network, by the Federal Government and by the state governments.

 

Resources

The Federal Government will allocate, through its actions, resources for the repurchase of trucks at the end of their useful life. On the other hand, the private sector will be able to offer, in a complementary way to public benefits, products and services (cooperative credit, extended warranty, revisions, insurance, consortia, etc.) that can be enjoyed by the Program's beneficiaries in the acquisition of new vehicles.

 

Beneficiaries of the Renovar Program will have access to rights, benefits and advantages through the Renovar Platform and will be linked to the definitive cancellation of the registration of the eligible asset and its dismantling or destruction, as scrap. On the platform, the beneficiary will be able to register operations related to the dismantling or destruction, as scrap, of eligible goods, in addition to the use of benefits granted under the program. The Brazilian Agency for Industrial Development (ABDI) will be the operating agent for the platform.

 

Greater security

Reducing the average age of the national fleet will mean greater road safety and lower costs with accidents and respiratory diseases. In addition, a younger fleet benefits the environment by consuming less fuel and promoting a drastic reduction in the emission of particulates and polluting gases. Vehicle recycling will also help an entire economic chain linked to recycling, generating employment and income.

 

The program will mean even greater productivity for the transport sector, with lower maintenance costs, reduced freight, increased productivity, competitiveness and efficiency of logistics in the country, in addition to improving the working conditions of professionals. More safety on the roads and lower emission of gases into the environment are also expected.