BF to order 1,150 cars to Amsted Maxion

Brazil Ferrovias ordered to Amsted Maxion last week 140 cars of a total of 1,150 units to be acquired in the next two years. This first lot will start to be delivered in January 2006 and the conclusion of the delivery is foreseen for June. The cars will be bought through a leasing operation, to be effected with clients and banks. The information came from the Brazil Ferrovias CEO, Elias Nigri, who announced for October the signature of the contract.

Nigri explained that the financial equation for the purchase of the new cars was not closed yet, but that due to the short term he had already sent the order to Amsted Maxion. The leasing operation is different from the one accomplished previously by BF with its clients. In this new model the rolling stock will be acquired directly by the banks (or investments funds), through a Special Purpose Company, and then leased to the shippers. Also in this case, the operation has long term transportations contract warrants. The leasing operations concluded in the past by BF were accomplished directly with the shippers (take or pay contracts), without the participation of financial institutions .

The same equation should be used for locomotives, says Nigri, telling that the increased interest of the financial institutions in the railroad signals more resources to railroads. It is unquestionable, says Nigri,  that Brazil is going to walk through the railroad. No truck can take the great volumes of ores, soybean or sugar, for example. 

For next year, it is foreseen the purchase of 99 used locomotives. The Business Plan of the company previews investments of R$ 400 million to be applied this year and in 2006, which includes the reform of the track. With these investments, the forecast, according to the executive, is to reach  20 million of tons in 2006, overcoming the 15 million ton foreseen for this year. According to Nigri, the company should close the balance sheet with profit in  2005.

Fonte: Folha de São Paulo