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Tonymercury Sir Nigel Gresley

Location: Botany NSW

Local locomotive partnership

21 December 2010

BRAZIL: Locomotive specialist EIF has signed a partnership agreement with US-based Global Locomotive to exploit repowering and new-build opportunities in Latin America.

Founded in 2001, EIF had until recently focused on the refurbishment and repowering of small and medium-power main line diesel locomotives, but the firm is seeking to increase the number of locos it produces in the 600 hp to 2000 hp range, according to Managing Director Tadeu Gemma.

EIF has already supplied three EIF1000 shunters for industrial use by steel producer CSN, whilst four more locomotives are being supplied to São Paulo suburban operator CPTM for shunting and rescue duties. These locomotives will be rated at 2000 hp to cope with the 4% gradients on the CPTM network.

The first pre-series example of the EIF2000 design will be completed in the spring. This will be the first to use AC traction motors and microprocessor-based control equipment supplied by Global Locomotive. Gemma said that the company expects to produce eight EIF2000 locos in 2011.

Through its alliance with Global, EIF will offer Cummins engines for all its new locomotives, which are offered in 1000 mm, 1435 mm or 1600 mm gauge variants up to a maximum weight of 130 tonnes.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Brazil's transport infrastructure department (DNIT) plans to invest some 596mn reais (US$314mn) in the railroad sector by year-end.

"The two states receiving the most investments are the southeastern state of São Paulo and the northeastern state of Bahia. They have been allocated 206mn reais and 163mn reais respectively," the spokesperson said.

The southeastern states of Minas Gerais and Rio de Janeiro will receive 82.9mn reais and 40mn reais respectively, while 30.2mn reais have been earmarked for Santa Catarina in the south.

The mid-western state of Mato Grosso do Sul has been allocated 25mn reais for rail projects, and Paraná is due to receive 14.4mn reais, according to the official.

Various other small projects will take place throughout Brazil, such as a 3.4mn-real initiative to relocate residents to make way for the 5.42bn-real Transnordestina railroad project in the northeastern part of the country.

DNIT has an overall budget of approximately 15.6bn reais for transport infrastructure projects in 2011

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Brazil's national ground transport agency ANTT will accept proposals until June 8 to develop a new concession model for the country's railways.

"The new model aims to address issues such as mutual rights of way, stipulating production targets, and implementing security measures for the concessionaires," the spokesperson said.

The agency had previously set a deadline of May 19, but extended bidding due to bureaucratic issues, according to the official.

The government wants to end the monopoly of railway concessions, allowing more than one company to operate on the same railroad stretch.

ANTT regulates 12 railway concessionaires that operate a total of 29,637km of railroad. The agency is stepping up efforts to revitalize the country's privately operated railways, of which around 65% of are currently in disuse.

América Latina Logística (ALL) (Bovespa: ALLL11) operates most of the country's concessioned railroads, with 11,738km. The company reached a deal with ANTT in September last year to give up its concession of four planned stretches of the Ferronorte railroad in Mato Grosso state, saying the investment would be unsustainable.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Today, Progress Rail Services announced plans to establish a locomotive manufacturing facility in Sete Lagoas, Brazil, to serve the South American diesel-electric locomotive market. The company will operate the facility through its subsidiary, MGE Equipamentos e Servicos Ferroviarios Ltda. Progress Rail plans to make a “significant investment” to open and modernize an existing plant in Sete Lagoas, which will assemble and manufacture Electro-Motive Diesel-branded locomotives.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Progress Rail Services, a subsidiary of Caterpillar Inc., has announced the company’s plans to locate a locomotive manufacturing facility in Sete Lagoas, in the state of Minas Gerais, Brazil, to serve the South American diesel-electric locomotive market.

Progress Rail has agreed to open the facility to better serve its Brazilian and South American customers, and will operate the facility through its subsidiary, MGE Equipamentos e Servicos Ferroviarios Ltda.

Progress Rail anticipates this project could create up to 600 jobs when at full capacity.

The company plans to make a significant investment to open and modernise the existing manufacturing plant in Sete Lagoas, in the state of Minas Gerais.

The facility will assemble and manufacture Electro-Motive Diesel-branded locomotives in the 12,000 square meter space on a 100,000 square meter site.

Electro-Motive Diesel Inc. is a subsidiary of Progress Rail Services, and a worldwide leader in locomotive technology with approximately 33,000 diesel-electric locomotives in operation globally.

“We are proud to announce the opening of this state-of-the-art facility, which will allow us to produce locomotives locally for our Brazilian customers, and also continue to provide quality products to our customers around the world,” said Billy Ainsworth, president and chief executive officer of Progress Rail Services.

“We believe the Sete Lagoas community, in the state of Minas Gerais and the country of Brazil, will offer our organisation an exceptional location from which we will produce world-class locomotives.”

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

RIO DE JANEIRO -(Dow Jones)- Brazilian iron ore mining company Vale SA (VALE, VALE5.BR) is studying setting up a plant to produce railroad rails in Brazil's Minas Gerais state, Valor Economico newspaper said, citing state government sources.

The plant, to be located in the town of Governador Valadares, would have a production capacity for 500,000 metric tons a year of rails, to be used for Vale's own railroads and the market in general, according to Valor.

Vale is one of Brazil's biggest railroad owners and operators. Brazil currently imports rails from suppliers in countries including China, as Brazil's sole producer, steelmaker Companhia Siderurgica Nacional SA (CSN3.BR, SID), or CSN, stopped producing rails in 1996 due to lack of demand at the time.

Vale declined to comment on the Valor report when contacted by Dow Jones Newswires.

Steelmaker Gerdau SA (GGB, GGBR4.BR) is also studying the possibility of producing rails at its Ouro Branco steel mill in Minas Gerais, Valor said.

Gerdau's press office in Porto Alegre had no immediate comment on the report.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

IRJ

Brazil: a privatisation model that works

THERE is little doubt that South America’s rail network would be a lot smaller than it is today had several governments not taken the bold step to privatise their railways in the 1990s. Years of under-investment coupled with a failure to restructure national networks from bloated bureaucracies into commercial enterprises had taken their toll and put much of the continent’s railway on the road to oblivion.

The model adopted was to break the national networks up into smaller units either to serve a particular region or according to track gauge. These were auctioned as long concessions - typically for 30 years renewable for a similar term - with bidders invited to pay an initial fee, followed by annual fees and an agreement to invest.

It is interesting to compare the result of rail privatisation in South America's two largest countries, Argentina and Brazil, both of which are currently enjoying very strong economic growth. In Argentina the concessionaires have tended to concentrate their efforts on the easy pickings and have allowed many lines to fall into disuse. So much so, that the government has set up an agency to try to revive some of these lines. Some observers believe the government should have been a lot stronger in regulating the concessionaires to ensure they abided by their concession agreements, particularly regarding investment. The government is now paying a high price for its failure to do so.

It is a very different story in Brazil, where concessionaires have put a lot of effort and money into reviving their networks. Both the concessionaires and the government are reaping the rewards in terms of higher revenues and traffic volumes.

Even so, there is a belief that the concessionaires could be doing even better, and that rail's current market share of about 20% should be much higher. So the government is considering ways for rail to gain a bigger slice of the national freight market. This includes removing barriers to winning more traffic such as expanding the rolling stock fleet, improving access to the ports, building new lines, and removing financial constraints on growth. On the other hand, consideration is being given to allowing other operators access to the network to use spare capacity.

Concessions for government-built new lines will no longer be offered exclusively to one company. Instead one concessionaire will be responsible for the track and train control, while a number of operators will be invited to run trains.

Concessioning is also being applied to some urban rail networks in Brazil with considerable success. In Rio de Janeiro, both the commuter rail network and the metro have been privatised. The former has been in private hands since 1998. Prior to privatisation, the once bustling suburban system had fallen into a spiral of decay resulting in a huge reduction in traffic and mounting losses. But the system has been renovated and traffic is now growing strongly. The state government has shown its confidence in SuperVia by awarding it a new 38-year concession and agreeing to a joint investment programme.

A 20-year concession renewable for another 20 years was awarded for the Rio metro in December 2007 with a bid $US 300m above the minimum specified. However, the contract was renegotiated and the term extended to 2038. The metro's $US 100m deficit has now been eliminated and the metro now has a cost coverage rate of 1.6. While the network has expanded from 25.3km to 40.9km, traffic has more than doubled from 308,000 passengers/day to 650,000.

Investment has increased dramatically from around Reais 20m ($US 12m) a year to Reais 363.1m in 2009, and Reais 250.7m last year. This has enabled Metro Rio to dramatically improve train reliability and availability. Before privatisation, 14% of the fleet was out of service and only 60.5% was available for service during the morning peak. Today, all trains are operational and 98.9% of the fleet is available during the morning peak.

"A lot of the parameters are set in the contract, with escalating penalties leading to the loss of the concession if we fail to meet them," explains Mr Joubert Fortes Flores Filho, director of Metro Rio.

São Paulo has let a 30-year concession to Via Quatro to equip, operate and maintain the new Line 4. Via Quatro is not responsible for revenue, but is paid on the basis of the number of passengers using the line adjusted according to economic indicators. The concessionaire is allowed to develop other sources of revenue such as advertising. "It is a very sophisticated contract," concedes Mr Jorge Secall of Via Quatro. "The concession is working very well, but it is a learning process on both sides."

So what are the ingredients for a successful concession? First, the awarding authority must have a clear idea of what the concession should achieve. Targets in the contract must be set out clearly and be achievable. It is vital to get the balance right in monitoring the performance of the concessionaire and its adherence to what has been agreed. The concessionaire must be given the freedom to innovate while at the same time not allowing it to flout its commitments. Two final thoughts: the private sector cannot work miracles, so don't expect the impossible, and there is nothing wrong with a well-performing publicly-run railway.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Hitachi has signed a partnership agreement with local firm Iesa to produce metro and suburban rolling stock in São Paulo.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

German power convertor manufacturer SMA is setting up local sales and support subsidiaries in Hong Kong and São Paulo.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Hitachi Ltd is mulling a joint venture in Brazil with a local heavy machinery manufacturer to produce monorail cars there, the Nikkei business daily reported

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Suspension solutions for primary and secondary suspension: systems manufacturer for rail vehicles to present high-tech solutions.

From 8-11 November 2011, in São Paulo, Brazil, ContiTech will be showcasing its products at Business on Rails 2011, the largest railway trade fair in Latin America. The manufacturer of suspension systems for rail vehicles will be exhibiting in the Red Pavilion in the Expo Center Norte (booth K11). ContiTech's presentation will focus on ultramodern suspension concepts for primary and secondary suspension. MEGI(r)-brand hydro springs, bushings and buffers will also be on show.

The company's unit ContiTech railway engineering is a key supplier for the metro trains used in Brazil's cities, including four of the metro lines operated by CPTM in São Paulo. "We ship the majority of our systems in kit form and have them constructed on site. For our customer CAF, for example, we are currently supplying air spring systems, and a similar application will follow for the Recife metro system," says Benoit Guidemann, key account manager for Railways Application in France and Spain. "Brazil - and indeed the whole of South America - is a huge market with lots of potential. We collaborate there with a number of major manufacturers, including Bombardier-Alstom and CAF."

As a development partner and manufacturer for original equipment, ContiTech Railway Engineering develops complete suspension concepts and system solutions for primary and secondary suspension systems. By using high-quality materials and material combinations, the company is able to satisfy the most stringent requirements in terms of safety, comfort, speed and vehicle noise reduction while upping the economic efficiency of freight and passenger transport. The weight of a suspension system is also a crucial factor: ContiTech develops aluminum components that are up to 40% lighter than conventional steel parts, thereby contributing to the development of energy-efficient solutions.

ContiTech's broad sales network also means that rail vehicles operators receive rapid assistance. Whether in Brazil, the UK or China, ContiTech's service team can be on site wherever they need to be within just a short time to support operators and manufacturers alike. "We're probably the only ones in the rail vehicle suspension sector able to offer this kind of immediate help worldwide. We are able to do so thanks to our many service providers," notes Friedrich Hoppmann, head of the ContiTech Railway Engineering segment.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

On June 15, 2011 CNR exported 2 wagons of 37.5t axle load,one is prototype SKD, to Oyamota company in Brazil from Dalian port of China.

On August 21, 2011 CNR sent mission group went to Oyamota company Brazil on SKD wagon and technology support task has successfully completed. Brazil Vale specifies the Oyamota company is one of the three qualified suppliers. Prototype parts in Brazil successfully assembled to explore Brazil and other South American market with a new idea and has laid a good foundation.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Egis has gained a foothold in the Brazilian rail engineering market with the acquisition of a 51% stake in VEGA on September 13, and plans to increase its stake through to 2014. Founded in 1987 and based in Curitba, VEGA employs 270 people and recorded turnover of R$31m in 2012. Rail accounts for 86% of its activities, with current projects including studies for doubling the 900 km Carajás line.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Samuel-

Knorr Bremse

This German firm is building in the interior of the local state of São Paulo a factory for vehicle brakes. Today a total of 250 equipments for suburban trains can be produced per month, but in the future this quantity can be increased by 50 pct.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Samuel

Progress Rail, the railway part of the American locomotive manufacturer Caterpillar in Peora, Illinois/USA, plans the construction of a locomotive factory in the local state of Minas Gerais. This shall serve the increasing requirement for the transport of paper goods. Caterpillar in its time took over the locomotive production of EMD, the former locomotive factory of General Motors. It is the world's only user of two stroke motors. The locomotives are of type SD70, a more modern version of type SD40. Of the version SD4052 of which FCA has so far ordered 40 locomotives, already 26 locomotives have been delivered. They were modified from 6 to 8 axles to enable larger axle loads  and be able to use the locomotives everywhere.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Samuel

New train factory of IEAS and Hitachi

These two firms want to build a factory at Araraquará in the interior of the local state of  São Paulo for the construction of regional trains, subway trains and monorails. It shall be operative by the middle of 2012.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Samuel -

Araraquara SUpside-down Razz Bypass

This city in the interior of the local state of São Paulo plans a bypass line to remove the goods traffic from the town centre. This will include the largest shunting field of Latin America and a maintenance workshop for diesel locomotives, also the largest in Latin America.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Brazil's transport infrastructure department (DNIT) still has some 7.5bn reais (US$4.3bn) of its 2011 budget left to spend this year, a DNIT spokesperson told BNamericas.

"As of October 31, DNIT had spent approximately 8.5bn reais of its 16bn-real budget," the spokesperson said, adding that spending is usually higher during the last few months of the year.

The backlog is largely due to tenders that were cancelled following corruption allegations concerning the transport ministry in July of this year.

Irregularities with projects and reports of a kickback scheme operating within the ministry led to the removal or resignation of more than 20 transport ministry officials, including minister Alfredo Nascimento.

President Dilma Rousseff has pledged to stamp out corruption within the government, moving quickly to deal with scandals. Five ministers have resigned this year over ethical breaches, many of which date back to the administration of former president Luis Inacio Lula da Silva.

On top of the corruption scandal, the transport department has also been hit by technical issues. The federal audit court (TCU) found inconsistencies in DNIT's restoration program for special engineering works, Proarte, which resulted in the suspension of a 5.8bn-real multi-year program to restore 2,500 bridges from 2011-2015.

Currently, Proarte is being revised and new project studies are underwa y. Tenders are being planned for bridge, viaduct and highway initiatives and works that do not kick off by year-end will be carried over to 2012, according to the DNIT official.

 
wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

Progress Rail Services opening Brazil assembly plant 02. December 2011  

Progress Rail Services has plans to open a locomotive manufacturing facility in Sete Lagoas, in the state of Minas Gerais (Brazil), to serve the South American diesel-electric locomotive market. Progress Rail will operate the facility through its subsidiary, MGE Equipamentos e Servicos Ferroviarios (MGE). Progress Rail Services is a wholly-owned subsidiary of Caterpillar and a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. (ben)

http://www.progressrail.com

http://www.emdiesels.com

http://www.caterpillar.com

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Spanish companies at ‘Negocios nos Trilhos’ fair in Brazil

Eight companies of the Spanish rail industry along with MAFEX association took part this year in the ‘Negocios nos Trilhos’ (‘Business on Rails’) fair held in the city of Sao Paulo, Brazil, in a mission organized by the Spanish Institute for Foreign Trade (ICEX).

(02/12/2011)  The Spanish participation highlighted the possibilities of the country to offer a coordinated proposal for the projects planned in the Brazilian market, one of today’s most active markets.

The Fair, which took place from 8 to 10 November and included the participation of Vía Libre with its own stand, served as an ideal showcase for the latest technological innovations in the Spanish railway industry as well as for the specialized solutions provided by the companies in the industry.

Opportunities in Brazil

Brazil, the eighth economy in the world, is preparing important sports events for the next few years, such as the FIFA (International Federation of Football Association) Confederations Cup in 2013, the World Cup in 2014 and the Olympic Games in 2016.

Aimed at these events are the large investments in the field of transport announced by the different administrations, both in urban and commuter networks as well as long distance and freight. The high-speed connection between Sao Paulo and Rio de Janeiro could be also be added.

‘Negocios nos Trilhos’

‘Negocios nos Trilhos’, the biggest international rail transport fair in Latin America, occupied 14,000 m2 this year and was attended by 180 exhibitors, attracting over 7,000 professionals from all around the world.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Scomi Engineering Bhd a subsidiary of Scomi Group Bhd a Malaysia based company announced that it has signed a non binding Memorandum of Understanding with Montagens e Projetos Especiais SA and Brasell Gestão Empresarial LTDA to set up a JV Company to undertake the manufacturing and assembling rolling stock in Brazil and to pursue other rail related services projects in Brazil.

The proposed activities to be undertaken by the JVC include monorail manufacturing and participating in other rail related projects such as systems supply and installation and other types of rolling stock supply and assembly, such as Metro vehicles and Light Rail vehicles.

The announcement follows the recent Scomi contract wins in Brazil for the Line 17 monorail project in São Paulo, awarded to the Consortium Monotrilho Integracao which consists of Scomi, MPE, Andrade Gutierrez SA (‘AG Group’) and CR Almeida SA Engenharia de Obrasare (‘CR Almeida’) and the 20 km monorail line in the city of Manaus in the State of Amazonas, awarded to the Consortium comprising Scomi, CR Almeida, Mendes Junior Trading E Engenharia S/A (‘Mendes Junior’), and Serveng-Civilsan S/A Empresas Associadas De Engenharia (‘Serveng’).

Commenting on the MoU, Mr Hilmy Zaini Zainal president of Scomi Brazil Country said that “With the 2 significant monorail project wins in São Paulo and Manaus, we are progressively extending our business presence in Brazil and continuing to augment our service offerings to our customers in the region. Through this partnership with MPE, Scomi will be in a stronger position to capitalize on rail projects driven by investments to expand and improve urban transport systems in preparation for the FIFA World Cup and the Olympic Games.”

“Through its participation in the proposed fully integrated manufacturing facility in Brazil and with the impressive track record and depth of experience of MPE, Scomi’s competitive position will be further enhanced in the country. This smart partnership will enable us to match the rail industry’s needs by offering a wider product range, innovative technologies and international expertise.”

The combined contract value for both Line 17 in São Paulo and the monorail line in the city of Manaus is approximately BRZ Real 2.86 billion. The projects are scheduled to be completed in 42 months and 40 months respectively with first delivery of cars to commence in the first quarter of 2013 for São Paulo.

With the burgeoning rail market in Brazil, the government is expected to float at least another 20 tenders in the next 24 months for urban transport projects of which 35% are projected to be monorail systems.

The JVC’s manufacturing facility which complements Scomi’s presence in Brazil will have comprehensive capabilities for the design and manufacture of monorails and light rail vehicles. The manufacturing site will be equipped to rival the world’s finest in the production of urban transport systems. A highly skilled team complemented by the latest manufacturing technology and a strong management team, will ensure that Scomi delivers the highest levels of quality demanded by the world’s rail operators today. At the same time, the North KL Facility in Malaysia will continue to enhance its role as the global R & D centre for rail related products and services.

 
wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

Brazilian wagon plant announced

12 January 2012

BRAZIL: Production is expected to begin in the second quarter of 2012 at new wagon plant which Usiminas Mecânica is building on a 102 000 m2 site at Congonhas in the state of Minas Gerais.  

This follows the signature of a memorandum of understanding with RCC Holding which is investing R$32m in the project.  

The plant will have the capacity to produce up to 3 000 wagons a year, and be capable of building four different designs at the same time. Steel is to be supplied from within the Usiminas group, as well as cast components from an automated production line brought into use at Ipatinga in December 2011. Wagon production at Congonhas is expected to begin with 180 staff, rising to 600 at peak demand.  

The Usiminas plant at Santana do Paraíso is currently building 447 wagons for Eldorado Celulose, as well as 220 for Vale.  

According to forecasts prepared by the Brazilian Railway Industry Association, an average demand of 4 500 wagons/year can be expected over the next 10 years.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

* Cosan to pay more than 100 pct premium for railway stake

* ALL stake boosts Cosan role in agricultural transport

* Cosan to buy 5.7 pct of key Brazil railway

* ALL serves main agricultural regions of Brazil, Argentina

By Carolina Marcondes and Reese Ewing

SAO PAULO, Feb 22 (Reuters) - Cosan, Brazil's biggest sugar and ethanol group, agreed to pay more than double the market price for 5.7 percent of America Latina Logistica (ALL), a railway serving agricultural areas of Brazil and Argentina.

ALL controls a 21,000-kilometer railway network that links major agricultural regions in southern Brazil and northern Argentina with the key ports of Santos, Paranagua and Buenos Aires. A lack of suitable roads, rail links and ports has been one of the main limits to growth of Brazilian agriculture.

Cosan agreed to pay 896.54 million reais ($524 million) for 38.98 million shares, or 5.7 percent, of ALL, Cosan said in a statement to Brazil's securities regulator on Wednesday.

Shares of Cosan closed down 5.8 percent to 29.19 reais on Wednesday, the biggest one-day decline in more than six months, as investors questioned the wisdom of paying more than double the 10.34 real average price for the stock over the last month.

ALL's common shares reversed earlier gains to close down 1.8 percent at 10.83 reais in Sao Paulo late Wednesday afternoon, less than half the nearly 23 reais a share paid by Cosan for its stake.

Cosan's chief executive, Marcos Lutz, said in a conference call that Cosan agreed to buy ALL shares from some of the company's leading shareholders, Riccardo Arduini, Julia Dora Koranyi Arduini and investment fund Global Market Investments (GMI), rather than on the open market, and paid a premium in to have a material say in the day-to-day operations of ALL.

"The idea is not to control this company but to have a strategic position big enough to participate in the decisions. For us, it's key," Lutz told analysts on a conference call who were asking how he could justify paying such a high premium.

Premiums are often paid to become part of the controlling block of a major Brazilian company. French supermarket retailer Casino, which is set to take control of supermarket chain Groupo Pao de Acucar this year, paid a premium for its stake in the local retailer.

Pedro Galdi, chief strategist at the local trading house SLW, said Cosan will pay an above-market price for ALL shares because it is required in order to be part of the controlling shareholders' block in ALL's administration.

"The market wants to know: 'Why did it pay so much?' The market misinterpreted," Galdi said referring to the drop in Cosan share prices. "A controlling block is always more costly."

The purchase of ALL shares by Cosan is subject to approval by the market regulator.

"In the worst case scenario, losing this (premium of 400 million reais) would be serious but it would not be relevant to the company's (Cosan's) market cap," Lutz said. "On the other hand, if it puts us in another risk profile, with less risks, it's justified. This is what we were thinking."

Cosan, partner in a sugar and ethanol joint venture with oil major Royal Dutch Shell, should benefit from shipping sugar and ethanol on ALL's rolling stock and rail lines, which slice through some of Brazil's prime sugarcane areas in Sao Paulo, Parana, Goias and Mato Grosso do Sul states.

Lutz added that the company could use its own cash flow to pay for its stake in the railway operator if needed, and that Cosan's logistics division, known as Rumo, would benefit from collaboration with ALL.

Brazil is the world's leading exporter of sugar, coffee, orange juice and meats, much of which comes from the regions that ALL services.

"We are still designing the deal and the financing," Lutz said.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

Voestalpine AG (VOE), Austria’s biggest steelmaker, plans to build two plants for rail-track switches in Brazil this year to gain as the country prepares to host the soccer World Cup and the Olympic Games.

The plants will be located in Sao Paulo and in Sao Luis and are being built together with local partners, according to a statement from the Linz-based company that confirmed a report in Der Standard newspaper earlier. The investment will be in the “two-digit-million-euro range,” Voestalpine said.

The steelmaker is increasing its presence in Brazil as the country boosts investment in infrastructure before the 2014 soccer tournament and Olympics two years later. Rio de Janeiro and Sao Paulo plan new local transit systems, Voestalpine said, adding that Brazil-based Vale SA, the world’s largest iron-ore producer, is building a new heavy duty train route.

Voestalpine will “take advantage of the positive development by expanding in Brazil in the coming years,” Franz Kainersdorfer, who heads the rail unit, said in the statement. The plant in Sao Luis, in the north of the country, has already won a 40 million-euro ($53 million) order from a “leading global commodities company,” Voestalpine said.

The steelmaker has 16 plants in Brazil, which accounted for 4 percent of total revenue in fiscal 2011, according to its annual report.

Outside of Europe

“New capacity is unlikely to be built in Europe, but rather in growth regions,” Chief Executive Officer Wolfgang Eder said in the statement. “Europe is continuously calling into question its status as a center for industry.”

Eder, who heads Eurofer, the trade association of European steel producers, has repeatedly criticized the European Union’s carbon permit plans, saying they make EU steelmakers less competitive.

Voestalpine said last month that it was building car-part plants in China and the U.S. after winning a 700 million-euro order from a “leading European car maker.”

The company’s train business also plans to invest in Turkey and Saudi Arabia and may make a “bigger acquisition” through its Profilform unit, Standard said today, without saying where it got the information.

Voestalpine wants to get 50 percent of its sales from outside of Europe by the end of the decade, up from 22 percent now, the paper said.

 
Tonymercury Sir Nigel Gresley

Location: Botany NSW

NEW PROVIDENCE, N.J., Mar 27, 2012 (BUSINESS WIRE) -- Axion International Holdings, Inc. AXIH -1.72% , a leader in recycled plastic and plastic composite technologies used to produce ECOTRAX™ rail ties and STRUXURE™ building products, today announced the company’s first purchase order being shipped to Brazil. The order comes from one of the nation’s largest rail lines and is anticipated to be the first of many. The nearly $200,000 purchase order for ties is intended for some of Brazil’s more challenging track conditions including extreme moisture, as well as difficult work areas such as tunnels and mountainous regions. The ECOTRAX™ ties will be replacing shorter life-span-wooden ties cut from eucalyptus trees.

“We’re very encouraged to be dealing with such an established Brazilian freight rail line and believe that it’s indicative of the progress we are making in South America and representative of the need for a high performance tie in various international markets,” stated Cory Burdick, Axion’s ECOTRAX™ Rail Division Sales Manager. “Rail lines around the world are continuing to seek alternatives for the challenges of finding quality wood rail ties. Axion’s ties are perfectly suited to harsh environments and they’re increasingly finding favor because of their ability to withstand even the most volatile weather conditions and insect infested areas. We’re pleased to find that these markets are expanding for us and we intend to explore additional opportunities for growth.”

Axion’s ECOTRAX™ ties are engineered using the company’s patented 100% recycled formula. ECOTRAX™ ties have helped divert millions of pounds of plastic bottles and waste into useful products that will last decades. Because ECOTRAX™ ties are extremely strong, durable and low maintenance they are an excellent, cost-effective alternative to traditional materials.

 

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