The Rail Market in Brazil - 2014

THE RAIL MARKET IN BRAZIL - 2014

Image: Courtesy ‘Reginafreud’/Wikimedia Commons

BROOKS MARKET INTELLIGENCE REPORTS, PART OF MACK BROOKS EXHIBITIONS LTD THE RAIL MARKET IN BRAZIL - 2014

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BROOKS MARKET INTELLIGENCE REPORTS, PART OF MACK BROOKS EXHIBITIONS LTD CONTENTS

Introduction 5

1. Central government 6

Banco Nacional de Desenvolvimento Econômico e Social 6 Ministério das Cidades 6 Ministério dos Transportes 6 Secretaria de Política Nacional dos Transportes 6 Ministério do Planejamento 6

2. Infrastructure and rolling stock 7

Departamento Nacional de Infraestrutura de Transportes 7 Diretoria de Infraestrutura Ferroviária 7 Empresa de Planejamento e Logística SA (EPL) 7 Programa de Inversiones en Logística 7 Empresa Brasileira de Ferrovias 8 Agência Nacional de Transportes Terrestres 8 High-speed railway (proposed) 8 Engenharia Construções e Ferrovias SA (Valec) 9 Construction in progress and planned 9 Ferrovia Norte-Sul 9 Ferrovia Norte-Sul – Transnordestina connection 9 Ferrovia de Integração Oeste-Leste 9 Ferrovia Transcontinental 9 Ferrovia do Pantanal 10 Corredor Ferroviário de Santa Catarina 10 Other projects 10 Rio de Janeiro Comperj link 10 Rio de Janeiro – Vila Velha 10 Ferrogrão 10 Existing network 10 Breakdown of network by freight operator 11 Rolling stock 12

3. Rail freight operators 13

América Latina Logistica SA 13 Brado Logística SA 15 Ritmo Logística SA 16 Estrada de Ferro do Amapá SA 16 Estrada de Ferro Jari SA 17 Estrada de Ferro Paraná Oeste SA 17 Estrada de Ferro Trombetas 18 Ferrovia Tereza Cristina SA 18 MRS Logística SA 18 Contrail SA 19 Transnordestina Logistica SA 20 Ferrovia Nova Transnordestina 20 Vale SA 20 Estrada de Ferro Carajás 21 Estrada de Ferro Vitória a Minas 21 Valor Logística Integrada 22 Ferrovia Centro Atlântica 22 Ferrovia Norte-Sul 23

Companhía Brasilera de Trens Urbanos 24 Companhia Cearense de Transportes Metropolitanos 25 Companhia Paulista de Trens Metropolitanos 25 Empresa de Trens Urbanos de Porto Alegre SA 27 Estrada de Ferro do Amapá SA 27 SuperVia Concessionária de Transportes Ferroviários SA 27 Vale SA: Estrada de Ferro Carajás 28 Estrada de Ferro Vitória a Minas 29 Other passenger operators 29 Feasibility studies 29

5. Urban rail and metro 30

Belo Horizonte 30 Brasília 30 Companhia Do Metropolitano Do Distrito Federal 30 Cuiabá 30 Curitiba 31 Metrô Curitibano 31 Fortaleza 31 Metrô do Cariri 31 Metrô do Sobral 31 Goiânia 32 João Pessoa 32 Macaé 32 Maceió 32 Manaus 32 Manaus monorail 33 Natal 33 Porto Alegre 33 Recife 33 Rio de Janeiro 33 Concessão Metroviária do Rio de Janeiro SA 34 Porto Maravilha VLT 34 São Paulo 35 Companhia do Metropolitano de São Paulo 35 Monorail 36 ViaQuatro 36 Salvador 37 Companhia de Transportes de Salvador 37 Trem Suburbano 37 Santos 37 Teresina 38 Companhia Metropolitana de Transportes Públicos 38

The success of the post-privatisation rail freight market in Brazil has been underpinned by domestic and foreign investment and a developing and emerging economy. Despite a slowdown in economic growth, the volume of freight carried has continued to increase. Significant levels of investment in rail infrastructure and rolling stock will need to be realised if operators are to maintain freight levels.

For the intermodal sector the Land Transport Agency ANTT has predicted that the volume of intermodal traffic will increase by around 66 per cent from 2013-16 as new entrants to the market such as Brado Logística and Contrail consolidate their position. In 2014, a general election year, the government plans to launch the rail provisions of its Programa de Inversiones en Logística (Logistics Investment Programme). These include selling 35-year concessions to build, oversee and maintain sections of new railway and upgrade existing lines totalling over 10,000 route-km and leading to investment of around BRL91 billion over the next 30 years.

Public transport planning under previous administrations has focused on bus travel and failed to keep pace with increased demand created by urbanisation. Increased car ownership has led to even greater road congestion across cities and extended commuting times. A planned rise of nine per cent in public transport fares provoked violent public protests in Rio de Janeiro in 2014 and followed similar unrest across the country in 2013.

In February 2014 the government announced that spending on urban mobility projects would reach BRL143 billion of which BRL33 billion would be allocated to the development of metro systems across nine cities. In January 2014 it had reiterated a 2011 pledge to fund modernisation and expansion of the metro in Belo Horizonte with investment of over BRL2 billion. This followed an announcement at the end of 2013 for BRL5.46 billion (BRL1.34 billion from federal reserves and BRL1.5 billion underwritten by the national economic development bank) for the São Paulo suburban and metro systems.

Light rail and monorail systems are seen as a relatively inexpensive and achievable solution. Across Brazil urban rail projects have been galvanised by the challenges presented to host cities by the FIFA World Cup in 2014 and the 2016 Olympic Games. Although all 12 host cities for the World Cup had planned to have light rail, metro or monorail operating by 2014 some projects have been delayed, replaced by bus schemes or cancelled altogether. More positively confidence in the future of light rail has been boosted in 2014 by investment of BRL48 million in a new facility at Alstom’s Taubaté plant to build trams for the domestic and Latin American market.

Long-distance passenger trains have continued to be all but eliminated by competition from bus and air operators. Those that survive are patronised heavily, in common with commuter services. And in the light of a further postponement to the tendering process it remains to be seen whether the rail market will support the political will for Brazil to lead the way in Latin America on high-speed rail. Or whether, in the light of economic and population growth, investors and operators perceive continued development and expansion of long-distance freight corridors and urban passenger systems to be the way forward.

This report is a concise overview of the structure of the rail systems in 2014 and their relationship to national and local government. It summarises the activities of freight and passenger operators in terms of investment, traffic, rolling stock and expansion. Light rail operations and projects are summarised.

Website addresses are included to assist further research.

March 2014

Departments and agencies

Banco Nacional de Desenvolvimento Econômico e Social (National Economic Development Bank) www.bndes.gov.br

President: Luciano Coutinho Director Infrastructure: Roberto Zurli Machado

BNDES is a government agency. Its remit is to foster sustainable and economic development in the economy of Brazil, generating employment whilst reducing social and regional inequality. For the rail sector it is the principal financier of the proposed high-speed project and a many ongoing construction projects.

BNDES has a subsidiary in London and and offices in Johannesburg and Montevideo.

Ministério das Cidades (Ministry of Cities) www.cidades.gov.br

Minister: Aguinaldo Velloso Borges Ribeiro

Through the Programa de Mobilidade (Urbana Urban Mobility Programme) the Ministry is sponsoring infrastructure projects across the 24 largest cities in Brazil.

Ministério dos Transportes (Ministry of Transport) www.transportes.gov.br

Minister: César Augusto Rabello Borges

The Ministry is responsible for government policy across the transport sector. For rail it sets the overall strategy and determines levels of funding for infrastructure and service provision. It is responsible for developing legislation and has oversight of infrastructure and commercial issues.

Secretaria de Política Nacional dos Transportes (National Transport Policy Secretariat)

Secretary: Américo Leite De Almeida

Within the Ministry of Transport, the Secretariat has policy responsibility for projects including high-speed rail.

Ministério do Planejamento (Ministry of Planning) www.planejamento.gov.br

Minister: Miriam Belchior

The Ministry’s responsibilities include the Programa de Aceleração do Crescimento (Growth Acceleration Programme). The programme was launched in 2007 and entered its second phase in 2011 as PAC 2. Total investment in the programme was put at BRL958.9 billion for 2011-14. In addition to transport this covered expenditure on energy, housing and water supply infrastructure.

Departments and agencies

Departamento Nacional de Infraestrutura de Transportes (Department for Transport Infrastructure) www.dnit.gov.br

Director General: Jorge Ernesto Pinto Fraxe

DNIT is the government department, accountable to the Minister of Transport, responsible for policy on rail, road and waterways infrastructure.

Diretoria de Infraestrutura Ferroviária (Rail Infrastructure Directorate) www.dnit.gov.br/ferrovias

Director: Mário Dirani

Within DNIT, the directorate is responsible for rail infrastructure.

Empresa de Planejamento e Logística SA (EPL) www.epl.gov.br

President: Paulo Sérgio Passos

EPL was formed in 2012 as an agency of the Ministry of Transport. Its responsibilities include planning the activities and tracking the progress of the projects specified in the government’s new public-private partnership model for the logistics sector (Programa de Inversiones em Logística). The programme covers the building and upgrading of around 7,500 km of road, two airports, 150 ports and the construction and modernisation of over 10,000 route-km of railway. For rail the government intends to invite bids, beginning in 2014, for the 35-year concessions to build, manage and maintain new sections of line. Valec or its successor body EBF will initially acquire all of the capacity on the new lines before selling it to operators. The aim is to indemnify the concession holder against risk arising from lack of take-up. The programme envisages a BRL212.3 billion spend across the transport sector, with BRL91 billion allocated to rail over a 30-year period.

The following sections of rail are proposed by the programme:

Açailândia – Vila do Conde Belo Horizonte – Salvador Estrela d’Oeste – Panorama - Maracaju São Paulo avoiding line north: Jundiaí – Manuel Feio São Paulo avoiding line south: Evangelista De Souza – Ouro Fino Lucas do Rio Verde – Uruaçu

Maracaju – Cascavel - Mafra Rio de Janeiro – Campos – Vitória Salvador – Aracajú – Maceió - Recife Port of Santos: Riberão Pires – Raizda Serra – Cubatão São Paulo – Mafra – Porto Alegre - Rio Grande Uruaçu – Brasília - Corinto – Campos

In 2013 the government announced that EBF, a new agency of DNIT, will replace Valec. It will subsume Valec’s existing role and functions and take control of leasing and capacity allocation across the network including the new lines envisaged by the Programa de Inversiones en Logística.

Agência Nacional de Transportes Terrestres (Land Transportation Agency) www.antt.gov.br

Director General: Jorge Luiz Macedo Bastos

ANTT, an agency of the Ministry of Transport, is responsible for delivering government policy for land-based transport. For the rail sector this includes managing freight and passenger concessions. It is the regulatory agency for rail (and road) as defined by Law 10.233 (2001). It is responsible for project management of the proposed high-speed line between Rio de Janeiro, São Paulo and Campinas. In 2012 ANTT will allocate BRL69 million to consultancy work focusing on high-speed rail implementation.

High-speed railway (proposed)

Latin America’s first-high speed railway (Trem de Alta Velocidade) is proposed as a 1,435mm gauge line running 510.8 route-km southwest from Rio de Janeiro via Barra Mansa/Volta Redonda, São José dos Campos and São Paulo to Campinas. Eight stations are envisaged including those at the international airports at Rio de Janeiro (Galeão), São Paulo (Guarulhos) and Campinas (Viracopos). Construction would require 90.9 km of tunnelling, 107.8 km of viaducts and bridges and 312.1 km of surface alignments. The railway would be engineered for speeds of up to 350 km/h with a maximum axle load of 17 tonnes.

Feasibility studies and consultation exercises have preceded two failed tender launches to build, equip, operate and maintain the railway. Should a third attempt be successful, construction would be expected to take six years. The estimated cost of the project, including land acquisition, exceeds BRL34 billion, of which around 70 per cent would be public money raised through BNDES. To operate high-speed services an initial fleet of 42 (increasing to 84) eight-car trainsets is proposed. Projected capacity has been put at 33 million passenger journeys in the first year of operation, increasing to 100 million a year by the end of the concession.

Phase 1 (to select an operator and preferred technology) of the third tender exercise was launched in December 2012. By August 2013 only one consortium had signalled an intention to bid and the deadline was postponed, possibly until after the general election in October 2014. Phase II which would cover construction of the line would be subject to a separate tender exercise.

In the longer term, the Secretaria de Política Nacional dos Transportes (see entry in Central Government section above) holds a BRL9.97 million budget to conduct feasibility studies into extensions of the high-speed line from São Paulo to Curitiba and from Campinas to Triângulo Mineiro.

President: José Lúcio Lima Machado

Valec (to be replaced by EBF) is the state owned rail engineering, construction and operating company. An agency of DNIT, it is leading on design, tendering and delivery of the following 1,600 mm gauge construction projects.

Ferrovia Norte-Sul (EF 151)

A 4,197 km line is planned from Barcarena (Pará) close to the mouth of the Amazon at Belém on the north coast to Rio Grande (Rio Grande do Sul) near the border with Uruguay. The 477 km section from Barcarena to Açailandia was granted EVTEA (Estudo de Viabilidade Técnica Econômica e Ambiental) approval in 2012. The 719 km section from Açailândia (where it meets the Estrada de Ferro Carajás) to Palmas was completed in 2010 at a cost of BRL1.65 billion. The section is operated exclusively by Ferrovia Norte Sul SA on behalf of concession holder Valor Logística Integrada SA. The 855 km section from Palmas to Anápolis was due to be completed in mid-2014 and made available to open access operators. Cost of construction put at BRL 4.28 billion. The 682 km section from Ouro Verde to Estrela D’Oeste was scheduled for completion by 2015 at a cost of BRL3.38 billion. At Estrela D’Oeste a connection with the existing EF 364 (operated by ALL) will provide access to the Port of Santos and the Santos industrial area. Further extensions are proposed from Açailândia to Barcarena (477 km) and Estrela D’Oeste to Panorama (264 km). A 650 km line from Panorama to Chapecó and a 550 km line from Chapecó to Rio Grande were at the EVTEA economic and environmental consultative stage in 2014 with construction not scheduled to start before 2016.

Ferrovia Norte-Sul – Transnordestina connection (EF 232)

A 620 km line to connect the FNS at Porto Franco (Maranhão) to the Transnordestina at Eliseu Martins (Piauí) was granted EVTEA approval in 2012.

Ferrovia de Integração Oeste-Leste (EF 334)

Construction of a 1,527 km West-East line across the states of Tocantins and Bahia connecting Figueirópolis with the Port of Bahia at Ilhéus, with connections to the Ferrovia Norte-Sul and Estrada de Ferro Carajás, started in 2011. The first 536.5 km section from Caetité to Ilhéus is being tackled in four stages and is scheduled for completion by 2015. The 485 km section from Barreirou to Caetité will be the next phase of the project followed by the remaining 505 km western section from Figueirópolis to Caetité.

Ferrovia Transcontinental (EF 354)

A 4,400 km line would form an Atlantic – Pacific corridor connecting Porto do Açu (Rio de Janeiro) with Boqueirão da Esperança (Acre) near the border with Peru. The 1,641 km section from Ligação near Campinorte (Goiás) to Vilhena (Mato Grosso) known as the Ferrovia de Integração Centro-Oeste has received EVTEA approval. Cost of construction of the first 1,040 km section from Ligação to Lucas do Rio Verde (Mato Grosso) has been put at BRL4.1 billion. The proposed second stage from Lucas do Rio Verde to Vilhena comprising four sections totalling 598 km has been costed at BRL2.3 billion.

A 734 km line to connect Panorama to Porto Murtinho received EVTEA approval in 2012.

Corredor Ferroviário de Santa Catarina (EF 280/499/498)

An 862 km line is planned to link Dionisio Cerqueira (Santa Catarina) on the border with Argentina to the Port of Itajaí (Santa Catarina). The cost of building the 622.4 km section (EF 280) in five stages between Itajaí and Chapecó has been put at BRL1.68 billion. The 153 km Chapecó – São Miguel Do Este section is designated EF 499 and the 87 km São Miguel Do Este – Dionísio Cerqueira section is EF 498.

Other projects

Rio de Janeiro Comperj link

The state of Rio de Janeiro has approved a BRL1.65 billion project to provide a rail connection to the Comperj petrochemical site. Around 350 route-km of dual-gauge railway is envisaged, linking Comperj to the Açu complex and other industrial facilities as well as Rio de Janeiro, São Paulo and Santos. Part of the funding for the project would be provided by state-controlled Petrobras, owner of the Comperj site.

Rio de Janeiro – Vila Velha

A proposed 551 km line was at the consultation stage in 2013.

Ferrogrão

In 2014 São Paulo-based logistics company Estação da Luz Participações made an application for feasibility studies into a suggested 1,200 km north-south line from Miritituba (Pará) to Lucas do Rio Verde (Mato Grosso).

Existing network

Freight services operate over systems totalling 28,875 route-km (22,897 km of which is 1,000 mm gauge, 5,274 km is 1,600 mm, 510 km is dual (1,600/1,000 mm) gauge and 194 km is 1,435 mm). Passenger services operate over urban systems totalling 978 route-km (310 km of which is 1,000 mm gauge and 668 km is 1,600 mm).

------Freight operator Route-km/gauge

dual 1,600 mm (1,600/1,000 mm) 1,435 mm 1,000 mm ------

America Latina Logística Malha Norte 500 – – –

America Latina Logística Mahla Oeste – – – 1,945

America Latina Logística Malha Paulista 1,463 283 – 243

America Latina Logística Mahla Sul – 11 – 7,293

Estrada de Ferro do Amapá – – 194 –

Estrada de Ferro Jari 68 – – –

Estrada de Ferro Paraná Oeste – – – 248

Estrada de Ferro Tombetas – – – 28

Ferrovia Tereza Cristina – – – 164

MRS Logística 1,632 42 – –

Transnordestina Logística – 18 – 4,189

Vale Estrada de Ferro Carajás 892 – – –

Vale Estrada de Ferro Vitória a Minas – – – 905

Vale Ferrovia Centro Atlântica – 156 – 7,910

Vale Ferrovia Norte-Sul 719 – – –

------Total 5,274 510 194 22,925 ------

The existing fleets comprise around 3,200 locomotives and 105,000 wagons. By 2020 a further 2,000 locomotives are likely to be in use. The number of freight wagons required to meet traffic levels is expected to increase by a yearly average of 4,500 by 2020. The number produced each year during the ten years 2000-09 averaged 2,784.

Caterpillar Inc subsidiary, Progress Rail Services (owner of EMD) began assembling EMD-branded locomotives at its Sete Lagoas (Minas Gerais) factory in 2012 for the Brazil market and other South American operators.

Usiminas Mecânica is supplying Eldorado Cellulose with 447 freight wagons and Vale with 220 from its factory at Santana do Paraíso. In 2011 it opened a new factory at Cangonhas (Minas Gerais) with annual capacity to build 3,000 wagons of up to four designs. Randon SA supplied MRS Logística with 168 freight wagons in 2012 having secured a BRL35 million contract.

Details of other significant recent traction and rolling stock contracts are provided in Sections 3, 4 and 5.

Freight carried by Freight tonnes Freight tonne-km rail in Brazil (million) (billion)

2012 481.0 297.7

2011 475.0 290.5

2010 471.1 280.1

2009 395.5 243.4

Minerals (principally iron ore and coal) are the main source of traffic. In 2012 iron-ore accounted for 73.9 per cent of the total rail freight. Rail’s total market share in 2012 was 20.7 per cent.

Container traffic has increased significantly since privatisation. The number of containers carried increased from 3,459 in 1997 to 241,000 in 2012. The upward trend in intermodal traffic is expected to continue as access to ports and handling facilities is improved and recent entrants to the haulage market consolidate their position.

América Latina Logistica SA (ALL) www.all-logistica.com.br

President: Alexandre J Santoro

Latin America’s largest rail operator, ALL was established as Ferrovia Sul Atlântico in 1997 with a 30-year concession to operate freight over the southern network. Expansion followed in 2006 when it acquired Brasil Ferrovias, which held concessions for Ferrovia Novoeste SA (Novoeste), Ferrovias Bandeirantes SA (Ferroban); and Ferrovias Norte do Brasil (Ferronorte).

In early 2014 negotiations involving BNDES were held with a view to Rumo Logística SA (subsidiary of Cosan SA) acquiring a shareholding in ALL leading to a merger.

Investment in infrastructure and rolling stock since 1997 has totalled around BRL6.7 billion. In 2014 it operated nationwide over 9,481 route-km (1,000 mm gauge), 1,963 route-km (1,600 mm gauge) and 294 route-km (1,600 mm/1,000 mm dual-gauge) systems. Operationally it is structured into four units: ALL Malha Norte SA, ALL Malha Oeste SA, ALL Malha Paulista SA and ALL Malha Sul SA. Its operations extend to road haulage, logistics and warehousing. ALL ceased rail operations in Argentina after its concessions were revoked by the government on 5 June 2013.

2013 2012 2011

44.70 billion 45.22 billion 42.96 billion

A 1.2 per cent fall in volume in 2013 was attributed by ALL to capacity restrictions at the ports served by it (Paranaguá, Rio Grande, Santos and São Francisco) and a series of derailments which interrupted operations. Principal commodities are agricultural products, petroleum, construction materials, timber, steel, chemicals and container traffic.

Projects

Under the terms of a 2009 agreement with Rumo Logística, ALL began carrying raw sugar and derivatives between São Paulo and the Port of Santos. This resulted in rail’s market share between the two points increasing to 52 per cent in 2013 (compared to 12 per cent in 2009). In return Cosan committed investment of BRL1.17 billion to the rail operation. Upgrading infrastructure along the São Paulo-Bauru/Santos corridor accounted for BRL535 million, locomotive and wagon acquisition to BRL 435 million and terminal construction and expansion BRL206 million. This included a new dry port at Itiripina, covered rail reception facilities at Santos and an order for 50 AC44i locomotives from GE Transportation and 929 freight wagons including 739 from Amsted Maxion and Randon. The locomotives were assembled by GE Transportation’s Contagem factory with engine parts imported from Grove City, Pennsylvania. (The Contagem factory fulfilled orders also from Vale (nine locomotives for its Rio Colorado project in Argentina) and MRS Logística).

In 2013 around 25 per cent of the target of nine million freight tonnes was carried by ALL. Fines were levied on ALL by ANTT for alleged mismanagement including lack of infrastructure and rolling stock maintenance and a poor safety record. In October 2013 faced with contractual penalties ALL withdrew from the contract and began legal proceedings against Rumo Logística to contest the fines. Negotiations in 2014 concerning a possible merger of the two companies were seen as a way to resolve the contractual dispute.

Investment by ALL of BRL110 million in 2012 to reinstate services along a 174 km section between Araraquara and Colina was aimed at further exploiting the potential to carry sugar to the Port of Santos. The project included construction of a new terminal at Barretos (São Paulo) and is expected to generate annual traffic of 2.5 million freight tonnes from the start of operations in 2014.

A project to double the ALL Malha Paulista 164 km track section between Boa Vista Velha (Campinas) and Evangelista de Souza (São Paulo) received government approval in early 2014.

THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 14 A 260 km extension of the ALL Malha Norte system from Alto Araguaia (Minas Gerais) to Rondonópolis was costed at BRL780 million. Brazil’s largest grain terminal at Rondonôpolis from where grain is carried to the Port of Santos has been served by ALL since the end of 2012 and has operated at full capacity since the end of 2013. An extension of the line from Rondonópolis to Cuiabâ (210 km) is planned. The ultimate aim is construction of a line north towards Lucas do Rio Verde to form a connection with the planned Ferrovia de Integração Centro-Oeste.

Vetria Mineração, an ALL-led consortium (ALL holds 50.4 per cent interest, Vetorial Mineração 33.8 per cent and Triunfo Participações 15.8 per cent), has launched a project to upgrade the 1,765km line from Corumbá (where there is a cross-border freight connection with Bolivia) to the Port of Santos. The line, which needs investment in its infrastructure, is operated currently by ALL carrying cellulose, container traffic, fuel products, grain and iron and steel. Subject to ratification of financial proposals, Vetria will invest BRL2.04 billion in track and infrastructure upgrades and a further BRL2.15 billion in a fleet of 180 locomotives and 5,600 freight wagons to be operated by ALL. Investment of BRL1.03 billion in mine facilities at Corumbá and BRL3.30 billion at Guarujá (Port of Santos) completes the package. Iron ore reserves in the Corumbá region are estimated to be one billion tonnes. If the project is completed Vetria, in conjunction with ALL, expects to begin carrying 27 million freight tonnes annually to the Port of Santos in 2016.

In 2011 ALL began carrying bio-diesel between Esteio (Rio Grande do Sul) and Araucária (Paraná). Annual capacity was estimated at 300 million litres.

In 2012 it started carrying ethanol and petroleum between Campo Grande (Mato Grosso do Sul) and Paulínia (São Paulo). This followed investment by Agil Terminais of BRL4 million in an intermodal terminal and 1.7 km of rail siding at Campo Grande. In 2013 ALL leased 18 EMD SD40-2 locomotives from Progress Rail with a view to increasing capacity to around 5.28 billion litres a year.

The ALL locomotive fleet in Brazil comprised 966 in 2013 including unserviceable units. The most numerous (including sub-types) include 270 GE C-30 units, 126 Macosa-built G-22 and 91 GM SD 40. The most recent acquisition is a fleet of 29 GE AC 44 units of 4,400 hp. The number of wagons available was 27,688.

Brado Logística SA www.brado.com.br

President: José Luis Demeterco Neto

Brado Logística began operating in July 2011 as an independently managed ALL subsidiary. In 2014 ALL retained a 62.22 per cent shareholding, FGTS (F1-FGTS) held 22.22 per cent and Standard SA retained 15.56 per cent. FGTS (F1-FGTS) is the Fundo de Garantia do Tempo de Serviço (a federal government severance indemnity fund managed by Caixa Econômica Federal). Standard SA is a road haulage market leader in the refrigerated container sector.

2013 2012

63,800 51,600

ALL’s share of the container market was around just two per cent in 2009 when it carried 28,000 containers. The potential market is estimated to be 2.6 million containers a year. Brado Logística plans to invest around BRL1.2 billion on infrastructure, terminals and rolling stock during its first five years of operation and gain a market share of around 12 per cent of the container traffic in areas served by ALL. It is focusing on the import and export of containers, refrigerated traffic and investment in intermodal terminals. Brado Logística serves 16 intermodal terminals, four logistics hubs at Araraquara, Alto Taquari, Campinas and Santos and the ports of Paranaguâ, Rio Grande, Santos and São Francisco do Sul. Around two per cent of the freight at those ports is carried by Brado Logística.

Rolling stock comprises 23 diesel locomotives and around 1,400 freight wagons including 145 Spine Car 80 container wagons supplied by Amstead Maxion. A further 600 Spine Car wagons were ordered from the same company in 2013.

Ritmo Logística SA

The ALL road haulage subsidiary was formed in 2011 in collaboration with Ouro Verde Transporte e Locação SA. The aim is to exploit the road haulage market that originates from, or is destined for ALL’s rail network. The yearly potential market for road traffic is estimated at 40 million tonnes.

Estrada de Ferro do Amapá SA (EFA)

EFA operates a remote 194 route-km line between Pôrto de Santana and Serra do Navio (Amapá). It holds the joint distinction of being Brazil’s most northerly freight railway and the only one to operate on 1,435mm gauge. A 20-year operating concession, granted by the state government in 2006, was held by Anglo American plc until 2013 when it and the other shareholder Cliffs Natural Resources sold its interest in mining operations in Amapá state to Zamin Ferrous SA.

In 2011 freight tonnage amounted to 4.82 million freight tonnes (3.42 million tonnes of sinter feed and 1.40 million tonnes of pellet feed). The mine has reserves of 271 million tonnes.

The locomotive fleet comprises four GM SW-1200 diesel-electrics, two acquired in 1955 and two in 1966, an SW-1500 acquired from the same manufacturer and seven GE C-30 diesel-electrics delivered in 2007 (of which five are serviceable). There are 262 iron ore wagons. Maintenance is undertaken at workshops at Pôrto de Santana.

EFJ has operated since 1979 over a 1,600 mm gauge 68 km line in northern Pará. Timber is carried to a wood pulp plant operated by Grupo Orsa member company Jari Celulose Papel e Embalagens SA, the concession-holder, at Porto de Mungubá on the banks of the River Jari. Additional freight is generated by bauxite deposits with a total freight tonnage of around 1 million freight tonnes. EFJ operates two GM-EMD SD38-2 diesel locomotives.

Estrada de Ferro Paraná Oeste SA (Ferroeste) Web: www.ferroeste.pr.gov.br

President: João Vicente Bresolin Araujo

Ferroeste is Brazil’s only freight operator in public ownership. It has operated since 1997 over 248 route-km between Cascavel and Guarapuava on a line for which construction was financed by Paraná state government. A 30-year renewable operating concession held by Ferropar (Ferrovia Paraná SA) was revoked in 2006 with control reverting to the state.

Freight tonnes

2012 2011 2010

0.721 million 0.717 million 0.971 million

Soya, fertiliser and cement form the principal freight traffic. In 2013 the number of containers carried increased by 26.9 per cent compared to 2012. Guarapuava is served by other freight operators including ALL, which carries freight to and from the Port of Paranaguá.

Investment of BRL2.5 billion was approved at the end of 2011 by the Comissão de Viação e Transporte for expansion of Ferroeste. Two freight terminals opened in 2013 at Cotriguaçu (Cascavel) and Lustoza Agrologística (Guarapuava). Other plans include a 170 km line linking Cascavel to Guaíra extending 270 km to Dourados and Maracaju (Mato Grosso do Sul), connecting at Maracaju with the ALL system. A 170 km line southwest from Cascavel to Foz do Iguaçu on the border with Argentina and Paraguay is envisaged along with a 300 km link to Chapecó (Santa Catarina) diverging from the Cascavel-Guarapuava line. Also proposed is a 365 km line from Guarapuava to the Port of Paranaguá. The cost of the latter project, which would provide an alternative to the intensively used line between Curitiba and Paranaguá operated by ALL, has been estimated at BRL860 million.

A BRL8 million tender in 2012 for the supply of five new diesel locomotives was financed by the state’s economic development fund (Fundo de Desenvolvimento Econômico do Estado). The existing fleet comprised six GM diesel locomotives. The state government also funded modernisation of the fleet of 50 freight wagons.

The 28 km 1,000 mm gauge Estrada de Ferro Trombetas connects the bauxite mines of Mineração Rio do Norte SA (MRN), the line’s owner and operator, to Porto Trombetas in northwest Pará. MRN shareholders include Vale SA (40%), BHP-Billiton (14.8%), Rio Tinto Alcan (12.0%) and Companhia Brasileira de Aluminio (10%).

Bauxite is the sole traffic. Around 17.1 million freight tonnes were carried in 2012 (16.8 million in 2011). The railway operates 10 diesel (seven GM G-12 and three GE C22-7i) locomotives and around 140 freight wagons.

Ferrovia Tereza Cristina SA www.ftc.com.br

President: Benony Schmitz Filho

FTC operates over 194 route-km in the southern coal-mining state of Santa Catarina. The line, which has access to the Port of Imbituba, is isolated from the Brazilian rail network. A consortium of Gemon, Interfinance SA Participações and Santa Lúcia Agro-Indústria e Comércio has held a 30-year renewable concession since 1997.

Coal from the Siderópolis area generates most traffic. Agricultural products, minerals, cement, ceramics and containerised traffic are also carried. Freight carried in 2011 totalled 2.44 million freight tonnes (172.90 million freight tonne- km).

A project to extend the line by 31 km in three stages by 2016 has been costed at BRL80 million. A long term aim is construction of the Ferrovia Litorânea to link Imbituba with the ALL system at Araquari, 236 km to the north.

FTC operates 10 GM locomotives comprising types G12 (3 units), G12M (5), G22 (1) and GL8 (1). It has around 450 wagons.

MRS Logística SA www.mrs.com.br

President: Carlos Henrique Waack

MRS operates over a 1,632 route-km (1,600 mm gauge) and 42 route-km (dual gauge 1,600 mm/1,000 mm) system in the states of Minas Gerais, Rio de Janeiro and São Paulo. It serves the iron ore producing region in Minas Gerais and the Atlantic ports of Guaíba, Rio de Janeiro, Santos and Sepetiba. The São Paulo to Santos electrified 1,600 mm gauge line includes the Abt rack system operated (10.7 per cent gradient) Old Serra Incline.

MRS operates a 30-year concession awarded in 1996 to a consortium including CSN (33.27 per cent), MBR (20 per cent), Usiminas Participações e Logística (19.92 per cent) and Vale (19.26 per cent).

2012 2011 2010

63.0 billion 61.6 billion 56.3 billion

Freight carried in 2012 amounted to 155.42 million freight tonnes (63.0 billion freight tonne-km). Iron ore was the principal commodity, amounting to 111.43 million freight tonnes, with agricultural products amounting to 21.08 million freight tonnes (mainly soya and sugar). Other commodities were coal (3.13 million freight tonnes in 2012), iron and steel products, cement, scrap, cellulose and minerals. From July – September 2013 MRS carried 42.9 million freight tonnes; a quarterly record total.

Investment in 2011 of around BRL1.5 billion embraced infrastructure and signalling projects and orders for new wagons. Randon SA is supplying 168 wagons (138 to carry steel bales and 30 general purpose) from its Caxias do Sul (Rio Grande do Sul) factory in 2012 at a cost of BRL35 million. A further 50 general purpose wagons are being supplied by Amstead Maxion at a cost of BRL13.3 million.

Brazil’s largest locomotive order was placed by MRS with GE Transportation in 2010. Valued at BRL600 million, it covered 115 AC44(i) diesel locomotives. They are being assembled (using 12-cylinder FDL diesel engines imported from GE’s Grove City, Pennsylvania factory) at the GE plant at Contagem (Minas Gerais) from 2011-15. The order included an option for a further 100 locomotives. The remaining MRS fleet comprises 642 operable diesel and nine electric locomotives. Around 50 locomotives are stored. The locomotive fleet includes AC44(i) types (85 units), C44-EMI (84) and C36-ME (68) of GE origin. GM designs in service include SD18 (10), SD38 (34) and SD40 (49).

Stadler Rail is supplying seven 5,000 kW four-axle rack electric locomotives from its Bussnang factory at a cost of BRL112 million to replace the nine Hitachi- built Type HFF20 3kV DC 2,460 kW locomotives used on the Old Serra Incline. An option exists on three additional locomotives. A BRL283 million contract to install Communications Based Train Control was awarded to Wabtec in 2011. An Operational Control Centre covering the MRS network opened at Juiz de Fora (Minas Gerais) in 2012. A new intermodal terminal at Queimados is due to open in 2015. Approval for the BRL100 million construction project was granted by the Rio de Janeiro state government in 2013. The MRS freight wagon fleet numbers around 19,000.

Contrail Operadora de Transporte Multimodal de Contêineres SA (Contrail) www.contrail.com.br

Contrail was formed in 2010 by a partnership of MRS and Estação do Luz Particapações. It began operating in the intermodal market in 2013 serving the Terminal Intermodal do Porto de Santos which has capacity of 1.2 million TEU. Following trials conducted with MRS in 2013 it expected to begin operating twin deck container wagons (Penta – Articulated PRU) in 2014 (the first to be used in South America).

TNL is a subsidiary of Companhia Siderúgica Nacional. It was formed in 2006 by the merger of Transnordestina SA and Companhia Ferroviária do Nordeste to deliver the government sponsored Ferrovia Nova Transnordestina project. TNL operates over a 4,189 route-km 1,000 mm gauge system in northeast Brazil. It holds a 30-year renewable concession from 1998 and is owned by CSN, with a 76.45 per cent shareholding, and the federal government.

TNL carried 1.52 million freight tonnes (730.44 million freight-tonne km) in 2010. Traffic is generated by the aggregates, agricultural, metals and petroleum sectors.

TNL operates a fleet of 113 locomotives comprising Alco RSD 8 (31 units), GE U5B (12), U8B (6), U10B (24) and GM G12 (26) types. Around 1,300 freight wagons are available.

Ferrovia Nova Transnordestina

Scheduled for completion in 2016, the 1,728 km 1,600 mm gauge Ferrovia Nova Transnordestina, construction of which began in 2006, will deliver an upgrade of existing 1,000 mm gauge track and 905 km of new 1,600 mm gauge railway. Total cost of the project, which will be completed at least six years behind schedule, has risen to BRL7.4 billion. BNDES has advanced loans of BRL225 million to TNL and BRL675 million to CSN, which in turn has committed BRL1.4 billion. Completion of the project will link the northeast region’s main ports at Pecém (Ceará) and Suape (Pernambuco) with Eliseu Martins (Piauí). Annual freight capacity, principally agricultural produce, is estimated at 30 million tonnes.

Vale SA www.vale.com.br

President: Murilo Ferreira

Vale is the largest mining company in the Americas and the second largest worldwide. Based in Brazil, with a presence in 38 countries, it is active in the logistics, energy and steel sectors. It owns maritime, port and rail systems in Brazil, Indonesia, Mozambique and Oman and has access to a number of rail networks in Africa. Its logistics operations are based on integrated systems linking mine to railway, railway to port and port to ship. In Brazil, Vale and its subsidiary Valor Logística Integrada hold an operating concession for four railway systems:

Estrada de Ferro Carajás Estrada de Ferro Vitória a Minas Ferrovia Centro Atlântica Ferrovia Norte-Sul

General Manager: Carlos Eduardo Fontenelle Carriero EFC is operated by Vale SA which holds a 30-year renewable concession expiring in 2027. The 1,600 mm gauge railway runs 892 route-km across the north-eastern states of Pará and Maranhão linking the Carajás iron ore mines (the world’s most productive) and the Port of Ponta da Madeira (Brazil’s busiest). Vale has invested BRL5.14 billion with the aim of increasing annual capacity at the port to 150 million freight tonnes.

EFC claims to operate the world’s longest train at over 3 km, utilising four locomotives and 330 freight wagons. Iron ore accounts for more than 95 per cent of freight tonnage. It is carried from the mine at Carajás to Ponta da Madeira in 312-wagon trains of 39,000 tonnes gross with locomotives marshalled mid-train and controlled via the Locotrol system. Other commodities include coal, fuels, manganese and copper.

Freight-tonne km

2012 2011 2010

103.30 billion 98.16 billion 90.40 billion

Infrastructure improvements include a re-signalling programme costed at BRL329.3 million to be completed in 2014. Development of a new mine at Carajás Serra Sul involves new double-track being installed for around 5,004 km of the system and construction of around 90 km of new single-track line to run southwest from a point west of Marabá. Environmental permits to enable construction to begin were granted in 2013 with completion scheduled for 2016.

EFC operates around 250 locomotives. EMD types operated are SD40 (27 units), SD60 (2) and SD70 (55). The GE fleet comprises C36-7 (39), C40-8 (4), C44-9W (89) and ES58ACi (10). There are 40 passenger coaches and around 15,000 freight wagons (mostly for iron-ore but including around 800 for general freight). A bio-diesel plant (using palm oil sourced in Pará) supplies the diesel locomotive fleet.

Estrada de Ferro Vitória a Minas SA (EFVM)

Executive Officer: Eduardo de Salles Bartolomeo

EFVM is operated by Vale SA on a 30-year renewable concession that expires in 2027. The 1,000 mm gauge railway operates over 905 route-km between Belo Horizonte (Minas Gerais), the Itabira mine complex and the Vale owned Port of Tubarão at Vitória (Espírito Santo). A double-track main line runs from Belo Horizonte (where there is a connection with Vale’s Ferrovia Centro-Atlântica) to Vitória with single-track branch lines.

Iron ore extracted from the mining complex at Itabira accounted for around 78 per cent of tonnage. Other customers include the agriculture, coal, steel, timber and manufacturing sectors.

THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 21 In collaboration with sister company FCA and the state of Minas Gerais EFVM has invested BRL300 million in developing the Pirapora freight terminal. Track and infrastructure has been upgraded between Pirapora and Corinto and a new freight facility built at Pirapora. The terminal has the capacity to load 6,000 tonnes of grain daily from road to rail from where it is carried by FCA and EFVM a distance of around 1,000 km to the Port of Tubarão. Annual grain exports from the port, along with soya and other crops are expected to increase from five to seven million tonnes by 2013.

EFVM operates 322 locomotives predominantly GE BB40 (182 units) and EMD DDM 45 (57). Around 19,000 wagons and 50 passenger coaches are available.

Maximum train lengths of 320 iron ore wagons are operated, with haulage by three GE Dash 9 locomotives using Locotrol radio remote control.

Valor Logística Integrada (VLI) www.vli-logistica.com

President: Marcello Magistrini Spinelli

Logistics services to third parties (as opposed to the transport of Vale’s own mineral output) across its rail operations, inland and maritime terminals and port operations are delivered by Vale subsidiary VLI. On behalf of the parent company VLI is the operating concession holder for Ferrovia Centro Atlântica SA and Ferrovia Norte-Sul SA. At the end of 2013 Vale retained a 37.6 per cent interest in VLI (having sold a 20 per cent interest to Mitsui & Co and a 15.9 per cent interest to FGTS (F1-FGTS) in 2013 and agreed the sale of a further 26.5 per cent at the end of the year to an investment fund managed by Brookfield Asset Management). Delivery of a fleet of 14 EMD SD70Ace units built at the EMD factory at Sete Lagoas (MG) began at the end of 2012.

Ferrovia Centro Atlântica SA (FCA) www.fcasa.com.br

President: Marcello Magistrini Spinelli

Vale controls its interest in FCA through VLI which holds a 30 year renewable operating concession until 2026. FCA, owned by Vale since 2003, operates over a 7,910 route-km 1,000 mm gauge network in Espírito Santo, Minas Gerais, Goiás, Bahía, Sergipe, Rio de Janeiro and the south of Alagoas. This provides access to the markets of Belo Horizonte, Brasília, Rio de Janeiro and Salvador. It connects with the metre gauge systems of EFVM at Belo Horizonte and Vitória and with the 1,600 mm gauge systems at Belo Horizonte, Rio de Janeiro, Tres Rios, Barra Mansa and Cruzeiro of MRS Logística. At Senador Canedo, southwest of Brasilia, it will connect with the Ferrovia Norte-Sul.

Freight-tonne km

2012 2011 2010

12.38 billion 10.67 billion 11.44 billion

THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 22 Soya, sugar and fertiliser are the principal commodities carried. Steel and iron ore, cement, chemicals, container traffic and petroleum products are also carried.

FCA operates around 500 locomotives. A further 45 are stored. EMD types include SD40 (30 units), GT26 (34), G8 (35) and G12 (37). GE types include U20C (137) and BB36-7 (51). Also running are 47 MX620 (EMAQ) units. The freight wagon fleet numbers around 10,500.

Ferrovia Norte-Sul SA (FNS)

Vale controls its interest in FNS through VLI, which holds a 30-year renewable operating concession for the completed section of the Ferrovia Norte-Sul between Açailândia (where it meets the Estrada de Ferro Carajás) and Palmas.

Freight-tonne km

2012 2011 2010

2.37 billion 1.90 billion 1.52 billion

The Norte-Sul construction project is the responsibility of Valec (see Section 2). FNS holds the operating concession for the completed section.

Completion of the Tocantins loading terminal enables FNS to carry soya and grain from the states of Tocantins and Mato Grosso to Açailândia, from where it is taken forward by EFC to Vale’s Ponta da Madeira or the Port of Itaqui (Maranhão).

FNS operates 38 diesel locomotives and 587 freight wagons.

Companhía Brasilera de Trens Urbanos (CBTU) Web: www.cbtu.gov.br

President: Francisco Carlos Caballero Colombo

An agency of the Ministry of Cities, CBTU was formed in 1984 to operate urban rail passenger systems across Brazil. Control of most has been devolved to local administrations leaving CBTU responsible for those in Belo Horizonte, João Pessoa, Maceió, Natal and Recife.

Belo Horizonte (Minas Gerais) Manager: Jorge Antonio Azevedo Vieira

The 28.2 km 1,600 mm gauge Metrô de Belo Horizonte Linha 1 suburban system is double-track and electrified at 3 kV DC overhead. It runs from Eldorado to Vilarinho, with 19 stations. Services are operated by a fleet of 25 four-car emus. The number of passenger journeys in 2013 totalled 64.9 million, an increase of 13 per cent over 2012.

New projected lines are: Linha 2 (9.3 km), running west-east to connect Barreiro and Hospitais; and the first 4.5 km section of Linha 3 running north-south to connect Pampulha and Savassi. Existing stations will be modernised with improved accessibility. The government announced in late 2011 and reiterated in January 2014, that BRL2.86 billion would be made available (BRL1.1 billion from central government, BRL750 million through BNDES and the remainder from private finance).

João Pessoa (Paraíba) Manager: Lucélio Cartaxo

A 30 km non-electrified line runs from Santa Rita via João Pessoa to Cabedelo. The single-track 1,000 mm gauge line has 10 stations and is operated by four diesel locomotives and 11 coaches. The number of passenger journeys in 2012 totalled 2.2 million.

The line is being converted to light rail operation, with the introduction of services scheduled for May 2014.

Maceió (Alagoas) Manager: Marcelo de Aguiar Gomes

A 32.1 km 1,000 mm gauge line from Maceió to Utinga, Rio Largo and Lourenço de Albuquerque, serving 14 stations is to due be fully upgraded by the end of 2014 with services operated by eight VLT (Veículo Leve sobre Trilho - light rail) sets. Three diesel locomotives and 10 coaches remain in operation.

Total cost of the project was put at BRL174 million. The number of passenger journeys in 2012 was 1.61 million.

A proposed 24km VLT line serving 17 stations would connect the city centre to Maceió airport. Construction was expected to cost around BRL1.5 billion with BRL900 million being provided by BNDES. A tender exercise was proposed for 2014 with construction expected to take 24 months.

A 56.2 km non-electrified 1,000 mm gauge network comprising two lines (Linha Norte and Linha Sul) from Natal to Parnamirim and Ceará Mirim serves 22 stations. There are four diesel locomotives and eight coaches. The number of passenger journeys in 2012 totalled 1.12 million.

Recife (Pernambuco) Manager: José Marques de Lima

Linha Centro and Linha Sul services operate over an electrified 39.4 km 1,600 mm gauge double-track system serving 28 stations. Also operated is a 34.9 km diesel-operated metre-gauge line (scheduled for upgrade and conversion to VLT operation) from Cabo and Cajueiro Seco north to Curado serving eight stations.

Electrified services are provided by 25 four-car emus supplied by Brazilian manufacturer San Matilde. Metre-gauge rolling stock comprises four diesel locomotives and 21 coaches. The number of passenger journeys in 2013 totalled 99.77 million (79.6 million in 2012).

Companhia Cearense de Transportes Metropolitanos (Metrofor) www.metrofor.ce.gov.br

President: Rômulo Fortes

Metrofor operates passenger services over the 1,000 mm gauge Linha Oeste from João Felipe Central Station via Antônio Bezerra to Caucáia (19 km) and Linha Sul from João Felipe via Parangaba to Vila das Flores (24.1 km). It also operates the Metrô do Cariri in Fortaleza (see Section 5).

Six light rail vehicles supplied by Bom Sinal operate Linha Oeste services. Linha Sul is operated by a fleet of 20 three-car electric trainsets supplied by AnsaldoBreda.

Linha Leste is a proposed 12.4 km line running from Chico da Silva on Linha Sul to Edson Queiroz. A BRL2.26 billion construction contract was awarded to a Centenco and Acciona consortium in 2013. Total cost of the project was put at BRL3.5 billion.

In 2011 a total of 3.76 million passenger journeys were made on Metrofor services (3,468,787 on Linha Oeste and 295,400 on Metrô do Cariri).

Companhia Paulista de Trens Metropolitanos (CPTM) www.cptm.sp.gov.br

President: Mário Manuel Seabra Rodrigues Bandeira

CPTM, an agency of the state of São Paulo, was formed in 1992 to operate suburban passenger services over a 1,600 mm gauge 260.8 route-km system. These are integrated with the separately administered Lines 1-3 and 5 of the São Paulo Metrô (see entry in Section 5). There is also a 6.4 km non-electrified 1,000 mm gauge line.

Line 7 (Rubi) 60.5 km Line 8 (Diamante) 35.3 km Line 9 (Esmeralda) 31.8 km Line 10 (Turquesa) 37.2 km Line 11 (Coral) 50.8 km Line 12 (Safira) 38.8 km

In 2013 the number of passenger journeys was 795.37 million, an increase of 4.1 per cent from 2012.

Investment

Line 7: BRL1.7 billion provides for complete modernisation including track, traction power supply system, signalling and communications, stations and rolling stock to be completed by 2016. Track layout improvements will be undertaken on the central section between Lapa and Barra Funda with rebuilt stations at Lapa and Água Branca to serve Lines 7 and 8. Construction of a new line from Agua Blanca on Line 7 to Jundiaí has been proposed.

Line 8: An extension from Alphaville to Tamboré is planned.

Line 9: An extension from Grajaú to Varginha is costed at BRL219 million.

Line 10: Planned investment of BRL833 million provides for a third track between Mauá and Santo André and a fourth track between Mauá and Brás and infrastructure upgrading focused on introducing an ‘Expresso ABC’ service between Mauá and São Paulo.

Line 11: An extension of Line 11 by 13 km from Guaianazes will enable Expresso Leste services to reach Suzano. Total investment in infrastructure upgrades by 2013 is put at BRL831 million.

Line 12: New stations are being built at Jardim Helena, Jardim Romano União de Vila Nova and USP Leste along with modernisation of existing stations and refurbishment of rolling stock.

Line 13: Line 13 will extend from Brás to Franco Montoro International Airport (Guarulhos). Plans to construct a high-speed line to connect the city centre to the airport at a cost of around BRL900 million were abandoned following the failure of a tender exercise in 2013 to attract private sector support. CPTM operates 869 emu cars (119 units) and 17 diesel locomotives. The most recent fleet acquisitions are Series 7000 eight-car emus (40 sets of which were ordered from CAF for BRL1 billion in 2008). A BRL1.78 billion order for a further 44 eight-car sets to form Series 7500 was awarded to CAF’s Hortolândia factory. The first four trainsets entered passenger service in February 2012. This was the first public-private partnership order to be placed by CPTM and includes provision for a 20 year maintenance contract. In 2010 a BRL181.6 million order was placed with Alstom Transport’s Lapa factory for 9 eight-car Metropolis trainsets for use on Line 11. CPTM ordered a further 65 eight-car sets in 2013 to be supplied by CAF subsidiary Brasil Indústria e Comércio SA and a consortium of Hyundai Rotem and Iesa Distribuidora.

President: Leonardo Hoff

Trensurb operates over a 37.9 route-km 1,600 mm gauge line serving 19 stations between Mercado in central Porto Alegre and Santo Afonso. It was opened from Mercado to Sapucaia do Sul in 1985, extended by 3.9 km to Unisinos in 1997, by a 2.4 km elevated section to São Leopoldo in 2001 and a further 4.9 km to Santo Afonso in July 2012. Trensurb operates as an agency of the Ministry of Cities (the government has a controlling (96 per cent) interest, with the state of Rio Grande do Sul and the city council making up the consortium). During peak periods services operate at four-minute headway. In 2011 the number of passenger journeys was 50.98 million.

Rolling stock comprises 25 EMU sets supplied in 1983 by a consortium of Hitachi, Nippon Sharyo and Kawasaki. In 2012 a Frota POA (Alstom/CAF) consortium was awarded a BRL243.75 million contract to supply 15 four-car Metropolis EMUs. CAF’s Hortolândia factory is to supply the bogies for the units which are being assembled at Alstom’s Lapa plant. The first unit was due to enter commercial service in September 2014 with completion of the order scheduled for January 2015.

The 9.3 km extension of Line 1 to Novo Hamburgo was due to be completed in 2014. It will be elevated throughout and serve new stations at Rio dos Santos and Santo Afonso (opened in 2012) and Industrial, Fenac and Novo Hamburgo. Total cost of the project was put at BRL953.7 million.

Monorail

Two pneumatically powered elevated rail Aeromovel vehicles built by Trans Sistemas de Transportes (T’Trans) connect Trensurb’s Aeroporto station to Salgado Filho airport (a distance of 998 metres). One vehicle has capacity for 150 passengers and the other carries 300. Cost of the project was BRL37.8 million.

Estrada de Ferro do Amapá SA (EFA)

EFA (see Section 3) provides a passenger service three times a week in each direction carrying about 30,000 passengers annually. The line is served by five stations and 10 halts.

SuperVia Concessionária de Transportes Ferroviários SA www.supervia.com.br

President: Carlos José Cunha

Rio de Janeiro’s suburban rail network is operated by Odebrecht TransPort which has held the operating concession since November 2010. Shareholders in Odebrecht TransPort include BNDESPAR, a BNDES subsidiary (10.61 percent) and FI-FGTS (30 per cent). The original 25-year concession awarded in 1998 has been extended to 38 years and covers operation of the 1,600 mm gauge 198 route-km electrified network and a 1,000 mm gauge 22 route-km section. The operating concession is awarded by Companhia Estadual de Engenharia de Transportes e Logística, an agency of the state of Rio de Janeiro.

THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 27 SuperVia operates the largest suburban system in Brazil, with routes running from Centro do Brasil terminal (formerly Dom Pedro II) to Santa Cruz, Paracambi, Belford Roxo and Saracurana. The 1,000 mm section links Saracurana with Guapimirim. There are 100 stations. Connections with the Metrô Rio network are made at Central do Brasil, São Cristóvão and Triagem e Pavuna. Most routes have a 30-minute interval service off-peak. Passenger journeys totalled 143.59 million in 2012.

SuperVia aims to increase capacity to one million passenger journeys a day by 2015. The renegotiated concession provides for a programme of public and private investment amounting to BRL 2.4 billion by 2015 focusing on signalling, electrification and track modernisation. At the beginning of 2012 the World Bank (International Bank for Reconstruction and Development) approved a USD600 million loan (with a 30-year term guaranteed by the government of Brazil) to the State of Rio de Janeiro. Building on the Rio de Janeiro Mass Transport Project II, the loan is intended to facilitate an upgrade of Rio suburban services to Metro standards and cover the USD348.33 million cost of 60 four-car trainsets.

SuperVia’s busiest section between Centro do Brasil and Belford Roxo has a 3-minute signalling headway. Bombardier Transportation was awarded the contract in 2011 to equip the SuperVia network with ETCS Level 1 signalling and Interflo automatic train protection, the first such installation in South America.

SuperVia’s 1,600 mm gauge fleet comprises 670 emu cars formed into sets of three or four cars. The first sets of 34 emus from Changchun Railway Vehicles (CRV) were imported from China, with later vehicles in the order being built at its Rio de Janeiro production plant which is being equipped by CRV.

The first of ten Alstom Metropolis EMU sets was undergoing trials in early 2014 with remaining units under construction at Alstom’s Lapa (São Paulo) factory and finishing at its Deodora (Rio de Janiero) plant. Completion of the BRL280 million order placed in December 2012 was scheduled for September 2014 (around six years earlier than required by the terms of the operating concession).

An USD306.5 million order for 60 four-car emus (with an option for a further 30 units) was placed with CNR Changchun and China National Machinery Import and Export Corporation in October 2012. Delivery was scheduled from June 2014.

By 2020 SuperVia intends to have upgraded its entire fleet and acquired 480 new cars. A small fleet of diesel-electric locomotives and passenger coaches operates the Saracurana-Guapimirim service and infrastructure trains.

Estrada de Ferro Carajás (EFC)

EFC (see Section 3) operates three trains a week in each direction between São Luís (Maranhão) and Parauapebas (Pará), a distance of 861 km. The number of passenger journeys in 2012 was 360,367. Parent company Vale SA is required under the terms of its operating concession to maintain the passenger service. It will replace its EFC passenger coaches in 2015 with a new fleet of 39 vehicles being supplied by Astra Vagoane (Romania) at a cost of around BRL132.1 million.

EFVM (see Section 3) operates a daily passenger service in each direction between Belo Horizonte and Vitória (664 km). Around 1 million passenger journeys are made each year (1.01 million in 2010). Astra Vagoane is supplying a new fleet of passenger coaches in 2014 to replace the existing fleet (including 30 standard class and 10 first class coaches and an accessible coach) at a cost of around BRL197.5 million.

Other passenger operators

In addition to metropolitan services and the scheduled long-distance passenger services operated by Vale subsidiaries EFC and EFVM, a significant number of operators provide passenger services, often non-scheduled, to cater for the leisure and heritage rail market. Examples include Serra Verde Express Ltda, which promotes four tourist services which generated around 200,000 passenger journeys in 2011. These include regular services between Curitiba and Morretes operated in collaboration with ALL. Vale SA subsidiary Ferrovia Centro Atlântica (see Section 3) operates tourist services on the Ouro Preto to Mariana line (18 km) and the São João del Rei to Tiradentes line (12 km). A list of operators is available at: http://www.antt.gov.br/destaques/ trensdepassageiros.asp

Feasibility studies

The Ministério dos Transportes has been assessing the practicality of introducing further regional passenger services. Options under consideration included providing secondary passenger services on heavily used freight routes where freight traffic would retain priority; integrating scheduled passenger and freight services on newly built lines; and enabling private operators to introduce passenger services focused on the tourist market over under-utilised sections of the existing freight network. In the latter case the following lines were identified:

Belo Horizonte-Ouro Preto / Cons. Lafaiete (Minas Gerais) Bento Gonçalves-Caxias do Sul (Rio Grande do Sul) Bocaiúva-Montes Claros-Janaúba (Minas Gerais) Campinas-Araraquara (São Paulo) Campos-Macaé (Rio de Janeiro) Codó-Teresina (Maranhão/Piauí) Conceição da Feira-Salvador-Alagoinhas (Bahia) Itajaí-Blumenau-Rio do Sul (Santa Catarina) Londrina a Maringá (Paraná) Pelotas-Rio Grande (Rio Grande do Sul) Recife-Caruaru (Pernambuco) Santa Cruz-Mangaratiba (Rio de Janeiro) São Cristóvão-Aracaju-Laranjeiras (Sergipe) São Paulo-Itapetininga (São Paulo)

Across Brazil, metro systems are being extended, existing heavy rail routes upgraded for operation by light rail Veículo Leve sobre Trilhos (VLT), new light rail lines laid and monorail introduced. Systems are operating or planned in the following cities:

Belo Horizonte

State government: Governo do Estado de Minas Gerais www.mg.gov.br

An electrified line is operated by CBTU (see Section 4).

Brasília

State government: Governo do Distrito Federal www.gdf.df.gov.br

Companhia Do Metropolitano Do Distrito Federal (Metrô - DF) www.metro.df.gov.br

President: Ivelise Maria Longhi Pereira da Silva

The Metrô comprises two 1,600 mm gauge lines serving 29 stations with capacity for 300,000 daily passenger journeys. Both lines run from Estação Central where they diverge to Ceilândia (Green Line) and Samambaia (Orange Line).

The rolling stock fleet comprises 12 four-car Metropolis emus delivered by Alstom’s Lapa (São Paulo) factory in 2010 and 20 emus dating from the start of services in 2001.

An 8.7 km light rail line, managed by Metrô - DF, operates between the city and the south wing of Juscelino Kubitschek International Airport. The BRL780 million cost of the line, which opened in 2011, was met by the Brasília state government (BRL380 million) and the Development Agency of France (BRL400 million). A BRL276.9 million extension from the Asa Sul terminal to the airport is under construction but the scheduled completion date of 2014 will not be met.

Cuiabá

State government: Governo do Estado de Mato Grosso do Sul www.ms.gov.br

Construction of Line 1 by the VLT Cuiabá consortium from Centro Político- Administrativo de Cuiabá to Aeroporto (15 km and 22 halts) and Line 2 from Coxipó to Centro (7.2 km and 11 halts) started in 2012 and is scheduled for completion at the end of 2014. The VLT Cuiabá consortium comprises CAF’s Brazilian subsidiary and construction companies Almeida and Santa Bárbara. A fleet of 40 seven-section CAF Urbos-3 units will operate services. All are being built by CAF in Spain. The first was delivered in October 2013 and began trials the following month. Completion of the order is scheduled for 2015. A 35-year operating concession has been awarded by the state government. Total cost of the project was put at BRL1.48 billion.

State government: Governo do Estado de Paraná www.cidadao.pr.gov.br

Municipal government: www.curitiba.pr.gov.br

Metrô Curitibano www.curitiba.pr.gov.br/metro

Curitiba’s integrated transport network (Rede Integrada de Transporte) pioneered the Bus Rapid Transport (BRT) concept and is represented as a model for the design and implementation of efficient and sustainable schemes.

Subject to the outcome of a tender exercise planned for May 2014 construction of the Curitiba metro is scheduled to begin in late 2014. The 17.6 km metro, to be operated on a 35-year concession, would serve 14 stations between Patió CIC Sul and Estação Rua das Flores and run underground for 15 km. Construction would be expected to take four years. Services would be operated by a fleet of 18 five-car electric units each with capacity for 1,450 passengers. Each car would accommodate a similar number of passengers to one three-section articulated bus.

The total cost of the project was put at BRL4.57 billion.

Fortaleza

State government: Governo do Estado do Ceará www.ceara.gov.br

Metrô do Cariri www.metrofor.ce.gov.br

Metrô do Cariri is operated by Metrofor (see Section 4) over a rebuilt 13.6 km 1,000mm gauge line serving nine stations between Fátima (Juazeiro do Norte) and Crato. The line was rebuilt at a cost of BRL25.2 million and the operating concession awarded to Metrofor by the regional government. An extension to Barbalha is planned. Services are provided by two Bom Sinal-built diesel railcars which generate around 5,000 daily passenger journeys.

A BRL330.7 million project to upgrade a 12.7 km freight line linking the Mucuripe and Parangaba areas of Fortaleza will not be completed on schedule by 2014. On completion VLT services will be operated by Metrofor with a fleet of 14 Bom Sinal four-section VLT units each with capacity for 766 passengers.

Metrô do Sobral

Construction of the 12.1 km VLT line serving 11 halts in the north of the state of Ceará was due to be completed in 2014. Services are to be operated by Metrofor. Cost of construction was put at BRL73 million.

State government: Governo do Estado de Goiás www.goias.gov.br

At the end of 2013 the state government awarded a 35-year concession to the Anhanguera Mobility consortium led by Odebrecht TransPort. The concession, to construct, operate and maintain the 13.6 km light rail VLT line between Goiânia and Anhanguera serving 12 halts, is to be financed by public-private partnership. Total cost of the project was put at BRL1.3 billion with the state government contributing BRL805 million. Construction is expected to take two years.

João Pessoa

State government: Governo do Estado de Paraíba www.paraiba.pb.gov.br

A non-electrified single line is operated by CBTU (see Section 4). The line is to be converted to VLT operation.

Macaé

State government: Governo do Estado de Rio de Janeiro www.rj.gov.br

Municipal government: Prefeitura Municipal de Macaé www.macae.rj.gov.br

A 22.5 km cross-city VLT line with 10 stations has been proposed to be built in two phases utilising an existing FCA line. Phase 1 would link Estação Central with Lagomar, followed by Phase 2 extending to Imboassica. Total cost of the project has been put at BRL72 million (BRL47 million from central government and BRL25 million from the Macaé municipal authority).

Maceió

State government: Governo do Estado de Alagoas www.governo.al.gov.br

A VLT line is being introduced by CBTU (see Section 4).

Manaus

State government: Governo do Estado do Amazonas www.amazonas.am.gov.br

In 2011 a Scomi Engineering-led consortium (including CR Almeida, Mendes Junior and Serveng Civilsan) was awarded the BRL1.46 billion contract to deliver a 20.3 km monorail by 2014. On completion the monorail would serve nine halts linking Largo da Matriz and Jorge Teixeira. Scomi would deliver 10 six-car Sutra trainsets in return for its BL342 million share of the contract. Completion of the first section of line is scheduled for the end of 2014.

The introduction of a BRL290 million Bus Rapid Transport project scheduled for 2014 has been delayed.

Natal

State government: Governo do Estado de Rio Grande do Norte www.rn.gov.br

CBTU (see Section 4) operates a 56.2 km non-electrified rail line.

Porto Alegre

State government: Governo do Rio Grande do Sul www.estado.rs.gov.br

Rail services (see Section 4) are operated by Empresa de Trens Urbanos de Porto Alegre SA (Trensurb). A BRL4.8 billion project to build the Metrô de Porto Alegre was at a pre-tender stage in 2014. The line would be a 21 km route mostly underground serving 20 stations linking Azenha in the south and Fiergs (Sarandi). A proposed 3.1 km branch would link Aeroporto on Line 1 with the planned Cairú station on Line 2.

Recife

State government: Governo do Estado de Pernambuco www.pe.gov.br

An 18 km section of the CBTU (see Section 4) operated line between Cabo and Cajueiro Seco is to be converted to VLT operation. Seven diesel railcars built by Bom Sinal at Barbalha no Ceará will replace two diesel locomotive- worked passenger trains. Capacity is expected to increase from 6,500 to 53,000 passenger journeys daily with the journey time reduced from 47 to 22 minutes.

Rio de Janeiro

State government: Governo do Rio de Janeiro Transport Secretary: Julio Luiz Baptista Lopes www.rj.gov.br

Director: Joubert Fortes Flores Filho

Metrô Rio operates services over Line 1 (16.0 km) and Line 2 (30.2 km) serving 35 stations. Services began in 1979 and were privatised in 2007 with Grupo Invepar (Investimentos e Participações em Infraestrutura SA, Concessionária Auto Raposo Tavares SP, Linha Amarela SA and Concessionária Litoral Norte) holding an operating concession until 2038. The consortium has committed to investment of BRL1.15 billion in infrastructure and rolling stock.

Around 650,000 passenger journeys are made daily. Capacity is expected to reach 1.1 million by 2016.

Services are provided by a fleet of 49 trains, the most modern being 19 six- car units delivered by China Northern’s Changchun factory in 2010-11. Fleet availability is put at 98.9 per cent at peak periods.

Line 1 is due to be extended from Saenz Peña to Uruguai by 2014.

Line 3 is under construction and will run 23 km (4.2 km on the surface and 18.8 km elevated) and serve 14 stations between Niterói and San Gonçalo and Itaboraí. A further extension from Niterói to Carioca will add 14 km and two stations. The project is costed at BRL1.2 billion of which BRL400 million will be contributed by Petrobras SA, which has a plant at Itaboraí. Completion is scheduled for 2014.

Line 4 construction started in 2010. This will serve six stations linking Ipanema with Barra da Tijuca Olympic Games site by 2016. Journey time is expected to be less than 35 minutes. Total cost of construction is likely to exceed the original budget of BRL5 billion by around 70 per cent.

Porto Maravilha VLT

A BRL1.16 billion project will deliver a six line catenary-free 28 km VLT system with 42 halts serving the city centre and Porto Maravilha redeveloped docklands, Leopoldina and Centro do Brasil rail stations, Novo Rio bus terminal and Santos Dumont domestic airport. The first 14 km section between Vila de Midia, Santo Cristo, Praça Mavá and Cinelándia is due to be completed by the end of 2015 with the remaining sections in 2016. In 2013 the state government forecast that when fully operational the VLT system would result in 15 per cent fewer cars (around 5,000 per hour) in the city centre and reduce the size of the bus fleet by 60 per cent (2,310 vehicles).

Funding has been allocated by the federal government through the PAC (BRL532 million) and the state of Rio de Janeiro (BRL632 million). The project will be delivered by the VLT Carioca Consortium (led by CCR, Invepar, OTP and Riopar Participações) and operated on a 25-year concession with a fleet of 32 Alstom vehicles, the first five of which will be built in Spain and the remainder at Alstom’s new tram factory at Taubaté which is scheduled for completion at the end of 2014.

State government: Governo do Estado de São Paulo Transport Secretary: Jurandir Fernando Ribeiro Fernandes www.stm.sp.gov.br

The Metropolitan Transport Department, part of the state government’s Infrastructure Directorate, is responsible for policy on rail passenger services. This includes planning, standard setting, inspection and performance as well as granting and monitoring concessions and fixing tariffs and development of operations.

Companhia do Metropolitano de São Paulo (Metrô) www.metro.sp.gov.br

President: Sérgio Henrique Passos Avellada

The Metrô is a 74.3 km system comprising Lines 1-5 (Blue, Green, Red, Yellow and Purple respectively) serving 64 stations. By 2014 the Metrô is expected to extend to 111 km, integrated with 41 km of monorail. The Metrô operates as an agency of the state government which invested BRL7 billion in a programme of modernisation and expansion from 2007-10. Line 4 (Yellow) is operated by concession holder ViaQuatro (see below).

In 2013 the number of passenger journeys recorded was 1.29 billion (an increase of 3.1 per cent from 2012).

Investment

Line 2: A 14.2 km extension from Vila Prudente to Dutra (Guarulhos) is planned. Phase 1 would be a 5.5 km line to Vila Formosa serving four stations. Phase II would add another 8.7 km and eight stations.

Line 4: Services were introduced from Estaçâo Luz in 2010 and extended in 2011 to Butantã, a distance of 9.4 km. Construction of Phase II began in March 2012 to extend the line from Butantã to Morumbi and Vila Sônia. When construction is complete, scheduled for 2015, the line will extend 12.8 km with nine intermediate stations. The cost of Phase II construction was put at BRL1.8 billion, taking the total cost of Line 4 construction to around BRL5.6 billion. An Alstom-led consortium was awarded the contract to install power supply and communications systems for Phase II.

Line 5: The 11.4 km extension (1,435 mm gauge) from Largo Treze to connect with Line 1 at Santa Cruz and Line 2 at Chácara Klabin will add 11 stations to the network and is scheduled for completion in 2016. The project’s first phase, extending the line one stop to Adolfo Pinheiro by the end of 2014, has been costed at BRL188 million, with the total cost of the extension put at around BRL7.5 billion.

Line 6: Construction was scheduled to begin in 2014 with completion of the first section in 2018. In 2013 a 25-year concession to build (2014-20), maintain and operate the line was awarded to the Move São Paulo consortium which includes Odebrecht TransPort. The 13.5km line will serve 15 stations connecting Brasilândia and San Joaquin on Line 1. Cost of construction was put at BRL9.6 billion with 50 per cent provided by BNDES.

THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 35 The Metrô fleet (excluding Line 4) comprises 150 six-car emus, 109 of which are required to operate peak hour services. In December 2011 a consortium comprising Bombardier, Tejofran and Temoinsa delivered the first of 26 refurbished six-car emus for Line 1. The upgrade is being carried out at the Bombardier plant at Hortolândia (São Paulo). It includes a redesigned cab and refurbished interior, air conditioning, energy efficient Bombardier Mitrac propulsion systems and upgraded door systems and bogies. The upgrade is intended to extend the life of the 30 year-old units by 20 years.

Monorail

Line 15: In 2010 the Expresso Monotrilho Leste consortium (Queiroz Galvão, Construtora OAS and Bombardier Transportation) was awarded the contract to deliver the Expresso Tiradentes, São Paulo’s first automated monorail. Line 15 (Silver) will run 23.8 km serving 18 halts linking Vila Prudente to Cidade Tiradentes in around 50 minutes (reducing the equivalent journey time by bus by more than half) with capacity for around 500,000 passenger journeys daily. Bombardier Transportation is to supply 54 seven-car Innovia 300 sets, with completion of the order being carried out at its Hortolândia plant. The first 2.9 km section was due to open in March 2014 with the line open throughout by 2016. Total cost of the project was put at BRL6.4 billion.

Line 17: The first section of the Line 17 automated monorail is scheduled for completion at the end of 2014. CMSP awarded the BRL1.4 billion contract to the Monotrilho Consortium (Scomi Engineering, Andrade Gutierrez, CR Almeida and Montagense Projectos Especiais) in 2011. The 18 km monorail will serve 18 halts and link Morumbi (Metrô Line 4) with Jabaquara (Line 1). Scomi is to deliver 24 three-car sets which will provide capacity for 250,000 daily passenger journeys.

Line 18: A tender exercise was scheduled for early 2014 for the Line 18 (Bronze) automated monorail. The 14.9 km line will connect Tamanduateí (São Paulo) to Djalma Dutra (São Bernardo do Campo) serving 13 halts. Cost of the project was put at BRL4.2 billion with BRL3.8 billion being shared equally by the state government and the private sector plus around BRL400 million from the federal government’s PAC2 programme. Construction was scheduled to begin in 2014 with completion in 2018.

ViaQuatro www.viaquatro.com.br

ViaQuatro holds a 30-year operating concession for Line 4 of the Metrô. ViaQuatro is a CCR Group (Companhia de Concessões Rodoviárias) led consortium comprising Montgomery Participações SA, Mitsui & Co Ltda., RATP SA and Benito Roggio Transporte SA. It has invested around BRL860 million in start-up costs (including rolling stock, signalling and a communications centre) and has committed to investing around BRL3.44 billion covering equipment, operating and maintenance costs over the term of the concession.

Connection is made at Luz with Metrô Lines 1-3 and CPTM Lines 7, 10 and 11. The number of passenger journeys is expected to increase from around 750,000 daily to around 1 million when the line is completed. ViaQuatro receives a formula-based payment related to the number of passenger journeys, rather than retaining revenue from ticket sales. It can supplement this by income generation from other sources such as on-site advertising.

THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 36 A Siemens-Rotem consortium was awarded the contract to supply 14 six-car emus for the start of services and a further 15 six-car trains by the end of 2014. It is also installing the control and signalling systems. Line 4 is equipped with an automatic train control system (with the potential for 75-second headway operation), driverless trains and platform screen doors. The trains are being supplied by the Rotem factory in South Korea.

Salvador

State government: Governo do Estado de Bahia www.ba.gov.br

Companhia de Transportes de Salvador (Metrô de Salvador)

The first 6.6 km section of Line 1 serving the Fonte Nova stadium is scheduled to open for testing between Lapa and Acesso Norte in June 2014. (Construction started in 2000 and resumed in 2013). Phase II of construction covers the remaining 5.6 km section of Line 1 to Pirajá scheduled for completion at the end of 2014 and the 24.2 km Line 2 linking Lauro de Freitas and Bonocó. In October 2013 a BRL4 billion build (42 months) and operate (27 years) concession was awarded by the state government to CCR. Lines 1 and 2 will serve a total of 22 stations. A further 5.4 km extension of Line 1 from Pirajá to Cajazeiras is proposed.

Line 1 will be operated initially by six four-car EMUs supplied by Hyundai Rotem in 2008. An order for a further 49 four-car sets to operate on Lines 1 and 2 when opened throughout was placed with an Hyundai Rotem – Iesa consortium in February 2014. The units will be assembled at the Iesa factory at Araraquara (São Paulo) with components imported from South Korea.

Trem Suburbano

The 13.5 km 1,000 mm gauge line links Calçada and Paripe serving 10 stations. An average of 17,000 passenger journeys is made daily. The line, operated by nine GE and Kawasaki/Toshiba Series 5900 locomotives, is to be rebuilt to form part of the Metrô.

Santos

State government: Governo do Estado de São Paulo www.stm.sp.gov.br

Municipal government: Prefeitura de Santos www.santos.sp.gov.br

Empresa Metropolitana de Transportes Urbanos de São Paulo www.emtu.sp.gov.br President: Joaquim Lopes da Silva Júnior

EMTU, an agency of the state government of São Paulo, is responsible for regulation and operation of inter-urban public transport services.

THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 37 Construction of the first 9.5 km of a VLT line serving 11 halts between Terminal Barreiros in San Vicente and Terminal Porto in Santos was scheduled for completion in May 2014. Testing was due to begin in July 2014 with public services starting in 2015. Phase II of the project will extend the line 4 km from Terminal Porto to Valongo. The fleet of 22 seven-section diesel VLT units is being supplied by Tremvia Santos, a consortium of Vossloh and T’Trans. The first three units are being supplied by Vossloh Rail Vehicles (Spain) with the remainder built by T’Trans in Três Rios (Rio de Janeiro). Total cost of the project including rolling stock was put at BRL980 million.

Teresina

State government: Governo do Estado de Piauí www.piaui.pi.gov.br

Companhia Metropolitana de Transporte Públicos (Metrô de Teresina)

Director: Marcos Tavares Silva

The Metrô comprises a single 1,000 mm gauge line running 14.5 km and serving nine stations between Mercado and Engenheiro Alberto Silva. CMTP, an agency of the state government, has held the operating concession since 1989. Services operated by Ganz-Mavag built diesel units generate around 5,000 passenger journeys daily. A BRL1.7 billion modernisation and infrastructure upgrade programme with funding from PAC2 was announced in 2013.

Mack Brooks Group Tel: +44 (0)1727 814400 Romeland House, Romeland Hill Fax: +44 (0)1727 814492 St Albans, Herts Email: [email protected] AL3 4ET, United Kingdom www.mackbrooks.co.uk

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