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 Brooks Events Ltd © 2014. All rights reserved. A Brooks Reports Publication No guarantee can be given as to the correctness and/or completeness of the information provided in this document. Users are recommended to verify the reliability of the statements made before making any decisions based on them. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior permission in writing of the publisher, nor be otherwise circulated in any binding, cover or electronic format other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser / borrower. 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 THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 3 4. Rail passenger operators 24 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 RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 4 INTRODUCTION 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 THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 5 1 CENTRAL GOVERNMENT 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. THE RAIL MARKET IN BRAZIL - 2014 Brooks Events Ltd©2014 6 2 INFRASTRUCTURE AND ROLLING STOCK Departments and