The latest
news 
of the Brazilian rail
are available here !
There will be listed here most of the latest important news
about anything that rolls over rails in Brazil, Most of the notes
are compiled articles, opinions or studies already published in
the Brazilian or International press. Please remember that this
is an unofficial site and everything listed here, doesn't
necessarily reflects the Author of this page,
any Company or Government opinion !
January/February 1997
December 1996
November 1996
September/October 1996
June/July 1996
April/May 1996
 |
RFFSA Privatization II |
|
First line RFFSA Sold I |
| |
Rio's Monorail |
| |
High Speed Study |
| |
Odebrecht in the FOX |
| |
CBTU calls for modernization |
January/February 1996
November/December 1995
RIO'S MAYOR WANT A MAGLEV SYSTEM
The outgoing mayor of Rio de Janeiro, Mr. César Maia, has authorized K Inada, Japan, to proceed with a $US 1,2 billion build-operated-transfer project for a 30 Km HSST maglev line to link Barra da Tijuca with the city centre. There would be seven station, one of which would connect with the metro.
The company must first conduct an environmental impact study. The government will also ensure that no other organization is interested in offering an equivalent or more attractive alternative on equal or better terms. If the maglev project gets over these hurdles, then construction could start in 1998. Once built, the line would be owned and operated by the company for 20 years.
Maximum speed would be 160 Km/h, although commercial speed would be only 64 Km/h.The line would have a capacity of 200,000 passengers a day. A fare of $US5 is envisaged.IRJ, Feb 1997
TWO MORE BRAZILIAN RAILWAYS PRIVATIZED
A FURTHER two Brazilian railways have been privatized. Brazilian Federal Railways’ (RFFSA) Southern Network went for Reias 216,6 million ($US 208 million), 37% above the minimum price of Reias 158 million, to a consortium of Rail Tex and Ralph Partners, United States, and Banco Garantia, judore, and Interferea, Brazil. This is the highest premium paid so far for an RFFSA railway.
The premium over the minimum price together with a 20% down payment totals Reias 90 million, and this has to be paidup front. RFFSA will use the money to upgrade the rundown Northeast Network, its last remaining railway which will be privatized later this year. The remainder is payable during the 30-year concession, which is renewable for another 30 years.
South Atlantic Railway, as Southern Network will be Known, will have to invest Reias 300 million in the 6586 Km meter gauge railway during the first two years. The immediate aim is to increase revenue by 50%. Oil accounts for 45% of freight traffic. South Atlantic Railway hopes to improve the quality of its services so that oil giant, Petrobrás, will not need build pipeline.
Only one group bid for Western Paraná Railway (Ferroeste), and Brazil’s Labor Party is trying to block the sale on the grounds that the meter-gauge railway is being sold for only 10% of what it cost to build-the first 248 Km was completed last year.
The 30-year concession, renewable for another 30 years, went to a consortiun comprising Gemon, FAO, Banco Interfinance, and Pound , Brazil, with Comazar, South Africa. The consortium bid the minimum price of Reias 25.68 million, with 5% payable immediately . It will have to invest Reias 117.7 million during the first five years. This includes the purchase of 20 diesel locomotives and 300 wagons. The railway may be extended 165 Km to foz do Iguaçu, near Ciudad del Este in Paraguay (see Paraguayan story), and 169 Km to Guaiara.IRJ, Feb 1997
A NEW LINK BETWEEN UNAÍ AND PIRAPORA
The federal government's budget this year could include funds to enable construction to start of the proposed 280 Km link between Unai and Pirapora. The freight line project, which will cost an estimated $US 250 million, has received the backing of the Brazilian President, Mr Fernando Henrique Cardoso.
IRJ, Feb 1997
CBTU CALLS BIDS
Urban rail operator CBTU has called bids for construction and fitting out of four short extensions to the Demetro network in Belo Horizonte, totalling 6.6 km; funding will come from a US$ 99m World Bank loan.
Railway Gazette, Dec 1996
CARAJÁS DIVERSIFIES
Coming up for privatization is Brazilian Steel producer CVRD, which owns the 892 Km Carajás Railroad (EFC) completed in 1985 between Porto madeira, near São Luis, and the Carajás iron ore mines in the Amazon Basin,
Last year, EFC carried 44.7 million tones of CVRD products, mainly iron ore, pig iron and fuel. But Superintendent Lauro Fassarella also managed to secure 4 million tonnes of freright carried for other organisations. Finished steel, fuel and fertiliser, are the main commdities imported, but increasingly EFC is taking out timber and agicultural produce. Soya bean production is growing rapidly, and poor roads mean soya traffic is doubling each year.
Even more remarkable is the success of EFC's thrice-weelkly passenger train in a continent where they have become en endangered species outsides major conturbations. Travel has grown by 70% since 1991, with 840000 notching up some 260 million passenger-km in 1995. Fres are half those charged by long distant buses, and you can ride from São Luis to Parauapebas for U$12. While this started as a social benefit provided by the company, first class passengers can now enjoy restaurant service in air-conditioned confort for U$68.
Althougt Fassarella says third party freight and passenger services are profitable, he is anxious to learn the views of CVRD's new owners.Railway Gazette, Dec 1996
PORTO ALEGRE RAIL EXTENSION
Work is to resume on the planned 6.3 km suburban rail extensions between Sapucaia do Sul to São Leopoldo, which had been delayed to throught lack of funds. A civil works contract has been awarded locally for the 3.9km section from Sapucaia do Sul to Unisonos, while Adtranz has secured the U$ 34 million contract to provide signalling communications , overhead, catenary, and auxiliary power supply systems for the complete extension, as well as for modernizing the operation control center.
IRJ, Nov 1996
ONE BID SECURES LINHA SUDOESTE
Brazil's third 30-year railway concession was auctioned at the Rio de Janeiro stock exchange on Sep. Attended by Prime Minister Antonio Kandir, the sale took one minute, as there was only one bid for RFFSA's 1633 km Southeastern network, widely seen as the most profitable of the six reginal operations.
Linking São pualo to the mining region of Minas Gerais around Belo Horizonte, the Southeastern concession includes the 300 km Steel Railway, recently completed at a cost of R$ 2.2 billion. The Network handles over 3.7 million tonnes of freight a month, mainly iron ore, steel and cement, and earns around R$1 million in revenue per day.
Sole bid MRS logística is a consortium of 13 major railway users, including privatised steel giant Companhia Siderurgica Nacional (CSN), mining groups Usiminas, Minerações reunidas Brasileiras (MBR) and Cosigua, Ferteco, Interférrea, Lachmann, Ultrafértil and two pension funds. The bid of R$8888.9 milliion was the minimum set by the government before the sale. Other interested players were CVRD, which has a stake in both earlier sales, and US railroad CSX.
MRS has decided to subcontract operation of the line to Sudfer, a company formed to re-employ redundant RFFSA staff. The employees'group will take a 10% stake in MRS, with the R$9 milliion cost being financed by the National Bank for Social & Economic Development (BNDES), which is also handling the privatization process for the government.
Railway Gazette, Nov 1996
RFFSA NETWORK SOLD
Brazil's 1633 km broad-gauge Southeast Network, the third part of Brazilian Federal Railways (RFFSA) to be privatized, went under the hammer to the sole bidder, the MRS Logística consortium, for the minimum reserve price of Reais 888,9 million (U$ 875,6 million) in September.
The consortium comprises major customers of the railway-Companhia Siderúrgica Nacional (CSN), Usiminas, Minerações Reunidas Brasileiras (MRB) of the CAEMI group, and Cosigua of the Gerdau group-plus Ferteco, Interférrea, Lachman, Ultrafértil, and the pension funds of CSN and CAEMI employees. The new owners have already decided that the Railway will be operated by RFFSA employees.
The Railway, which includes the 300 Km "steel railway", is the most modern in Brazil and generates revenues of about Reais 1 million a day hauling iron ore, steel and cement. The most productive section between Minas Gerais and Rio de Janeiro handles about 3.7 million tonnes each month. It handled 20.2 billion tonne-km in 1995, representing 55.6% of all RFFSA traffic during all that year
The contract with MRS logística stipulates a minimum investment of U$ 227 million during the first five years, and a total investment of US$ 1,4 billion during he 30 years of the concession.
Next to be privatized is the 169 km Teresa Cristina Network this month, followed by the 6785km Southern Network on December 12 and the Northeast Network in March 1997. A number of non-RFFSA railways, including Ferroeste, Fepasa and CVRD will also be sold, and by April next year, Brazilian railway map will consist of 13 privately-owned railway plus commuter railways and tourist lines.
IRJ, Nov 1996
FLUMITRENS CALLS BIDS
Flumitrens, the suburban train company of the State of Rio de Janeiro, has called bids for the general maintenance of 46 series 400 EMUs
IRJ, Nov 1996
RIO's METRO EXTENSION
Progress is once again being made by the metro authority in Rio de Janeiro. Bids have been called for supply of track materials for the long-planned extension of Line 1 from Botafogo to Arcoverde, currently scheduled to open in late 1997. Tenders have also been issued for replacement sleepers and fastenings for other section of Line 1 and for pre-metro Line 2, where construction work has restarted on the 10-8 km, eight station extension from Engenho da Rainha to Pavuna. Part of this line run for a short time in 1956-1987.
Line 2 currently runs with a LRV coupled to a two-car metro set, operating as metro between the Estacio interchange with Line 1, and Maria da Graça, and pre-metro forward to Engenho da Rainha. Due to open in 1998, the line will be operated as full metro as far as Iraja.
Railway Gazette, Oct 1996
IOCHPE FLAT WAGON
Iochpe Maxion, Brazil, has developed a prototype articulated flat wagon designed to transport up to six 20 foot equivalent unit (TEU) containers of non conventional lenght, which can be adapted for intermodal transport. Vitoria-Minas Railway says it is interested in purchasing a fleet.
IRJ, Sep 1996
RIO DE JANEIRO METRO LOAN
Rio de Janeiro metro has received loans totalling Reais 298.7 million (US$ 301 million) to finance the extension of line 1 to Copacabana, and complete the 10.7 km Botafogo-Praça Cardeal Arcoverde section of line 2. Additional system modernisation works will cover signalling and control, escalators and ventilation.
IRJ, June 1996
RIO COMMUTER RAIL SALE MOOTED
The 380 Km commuter rail network in Rio de Janeiro, which is operated by Flumitrens, shoul be privatised using the Buenos Aires model. The network should be franchised either to a single operator or several operators, with the winners chosen according to the lowest subsidy requested. This is the advice of consultants hired by the state of Rio de Janeiro and paid for by the World Bank.
Flumitrens has an annual operating deficit of Reais 250 million (US$ 252 million). However, at least US$ 60 million a year needs to be invested if the network is to reach its target of carrying 1.4 million passengers a day, compared with an average of 410,000 a day last year.
IRJ, June 1996
FERRONORTE SELLS CONTROL INTEREST
Entrepreneur Olacyr de Moraes has announced plans to sell his controlling interest in the Ferronorte project, sale of 70% of the shares is expected to raise 354m reals (300m US$).
Railway Gazette, July 1996
AUXILIARY POWER CONVERTERS
Transtechnik has developed static auxiliary power converters for use on Brazilian commuter trais in Sao Paulo and Rio de Janeiro, where the overhead power supply line voltage is 3kv DC. Switching at 20 kHz considerably reduces the size and weight of the transformers. For the first time the four IGBT converters take their input directly at 3kV.
Output is at 220 V AC three fase loaded at 50 kVA continous or 125 kVA peak. Efficiency is 94%, with maintenance free convection cooling further reducing running costs.
Railway Gazette, June 1996
CMW WON SIGNALLING CONTRACT FOR METROVIAS
CMW Equipamentos, GEC ALSTHOM's Brazilian subsidiary,has won an order worth of £28 million from Metrovias of Argentina to upgrade the Buenos Aires metro signalling system.
CMW will supply on board signalling systems for 79 trains and a complete signalling system for automatic train control and central traffic management. The upgrade will cover 53 stations on lines B,C,D and E over a distance 32 km. It is claimed that the new system will ensure greater passenger safety.
City Rail International, July/Aug 1996
FLOATING ON THE AIR
Last May 4, was the deadline for Brazilian Railway Partners to sign its concession agreement to run Brazilian Federal Railways' (RFFSA) Malha Oeste route for the next 30 years. Led by the US-based Noel Group, BRP won the auction for the 1621 Km route from Bauru to Corumbá on March 5, with a final bid of US$ 63.4m.
Observers suggested that the chosen method of privatisation has been designed to avoid political problems rather than actually boost any much needed upgrading of the rail network. The concession does not include any assets; the track and rolling stock remain RFFSA property, which the concessionaire has a right to use-if it still works.And with no assets of security, BRP may find it difficult to raise bank loans to fund any investment.
Under the terms of the deal, BRP is only required to pay 10% of its bid up front, and the rest in instalments over the life of the concession. The new owners must also float the operating subsidiary on the Brazilians stock martket within two years, and will then be free to sell off up to 39% of the shares. With an estimated valuation for BRP of around US$150m, astute readers can calculate that this could earn the founding prtners around US$60m for an initial outlay of just US$6m.
Cynical observers have already noted the coincidence that BRP's 'technical advisor', and a Noel Group partner is former Illinois Central and Southern Pacific President Ed Moyers, whose time at IC was marked by a series of very succesful railway re-financing deals on the US stock market.
Railway Gazette, May 1996
FIRST LINE SOLD
A 30-YEAR concession to run Brazilian Federal Railways' 1621 km Western Railway (SR-10) between Bauru and Corumba has been won by a New York based consortium of US and Brazilian investors. The group bid US$63.4m in an auction at the Rio de Janeiro stock exchange on March 5, which was attended by transport Minister Odacir Klein and Minister of Planning José Serra.
Led by Noel Group, which owns Illinois Central, the consortium includes Chemical Bank, Bank of America, Brazil Railway Partners,and Western Rail Investors. It outbid a rival offer from Brazilian road hauliers Interférrea, backed by CVRD, civil engineering MPE Group and the Bozano Simonsen and Icatu banks. The deal includes 88 diesel Locos 3874 wagons, which last year handled 1.8 billion tonne-km and earned US$40m. Petrol and alchol accounted for 42% of SR-10's traffic, and soya and grains a further 30%.
Mr. Klein told the Rio de Janeiro industry association in March that at least two more RFFSA regions would be franchised this year. Sale of the 7183 route-km Center-East and 1623 km South networks will be completed, and bids invited for the 6830 km Southern lines. Disposal of the 4629 km Northeastern region has been delayed.
Railway Gazette, April 1996
RIO's MONORAIL
A privately-built and operated,1.56km three-station automated monorail was due to open last month. It links a large car park with the Barra shopping center. Two 10-car trains have been suppiled by Intamin, Switzerland. Signalling and telecommunications was supplied by Mitsubishi, Japan. The monorail may be extended to Barra da Tijuca and to connect with a planned extension of line 1 of the Rio Metro.
IRJ, April 1996
HIGH SPEED STUDY
KFW of Germany has proposed a US$ 7 million study into improving rail services between Rio de Janeiro-São Paulo-Campinas suggestions include a 250 Km/h line offering a two hour journey.
Railway Gazette, April 1996
ODEBRECHT IN THE FOX
The Brazilian civil engineering group Odebrecht is part of the consortium who won the construction of a 515Km high-speed line linking Tampa, Orlando and Miami. The Florida Overland Xpress FOX. FOX is led by the US engineering consultants Fluor Daniel, with GEC-Alsthom of France, North American TGV licensee Bombardier and Odebrecht. The group expects to spend three years on planning engineering design and environmental assessments before construction work can begin.
Railway Gazette, April 1996
CBTU CALLS FOR MODERNIZATION
The Brazilian Urban Trains Company (CBTU), operating under the Metropolitan Transport Decentralisation project for Rio de Janeiro, has called bids for the modernisation of 21 series 500 trains.
IRJ, April 1996
CPTM's ROLLING STOCK INVESTMENTS
The São Paulo suburban railway authority. CPTM has received federal approval for a US$ 288 million loan for the purchase of 30, four-car broad-gauge EMUs from a European-Brazilian consortium led by GEC-Alsthom. Brazilian suppliers will get 15 % of the work.
IRJ, Jan 1996
TRENSURB CALLS CONSULTANCY
Trensurb (Porto Alegre metro authority),has called bids for consultants to help develop a 9 Km extension services from Novo Hamburgo to São Leopoldo.
Railway Gazette, Nov 95
You are vistor
number
at this site since July 15, 1996
Comments or Questions? Please E-mail me at the
address bellow, and let me know what you think. Also, if you have
ideas for stories or other rail info, please drop me a note. Author's Home Page
Take a look at some Rail Links !
This page is maintained by Francisco A. Pinto