MRS invests in three projects to reduce bottlenecks

MRS Logística, railroad concessionaire operating 1,700 kilometers of rails in three states, is investing US$ 158 million in three projects in the metropolitan region of São Paulo, which will help to ease the freight rail traffic, currently impaired by limitations of the passenger lines. This is a first intervention to reduce bottlenecks in the region, to be definitively solved with the Ferroanel (Rail Traffic Ring) construction.

The major investment (US$ 81 million) is in the modernization of the Serra do Mar cog railroad, between the cities of Cubatão and Paranapiacaba. The cog rail system uses a third toothed rail installed between the regular rails in a railroad.

The system is used to enable the locomotives to run on high up slopes. The Serra do Mar section has slopes up to 10% – the train climbs one meter for each ten meters traveled. A similar system operates in the access to Corcovado, in Rio de Janeiro.

With ten kilometers of extension, the cog railroad operates by using out-of-date technology and machines manufactured by Hitachi almost 40 years ago. It carries products, such as cellulose pulp for Votorantim and iron ore to supply Usiminas (former Cosipa). Today, the system carries 7 million tons per year, in both directions. Once the modernization is completed, this volume should jump to 14 million tons per year, in both directions.

Near one month ago, MRS started the works for segregation of freight and passenger tracks along a 12-km section between Itaquaquecetuba and Suzano, releasing the CPTM rails. This is an investment of US$ 70 million, with expected completion for the fourth quarter of 2012.

In other investment, MRS settled a partnership with Contrail to build an intermodal freight terminal in the city of Cubatão, including the removal of Conceiçãozinho slum. The terminal will be built and operated by Contrail, while the railroads will be under the responsibility of MRS. The company intends to deploy double deck, forming train sets by stacking two containers, one over another.

With operation start-up expected for 2012, the terminal will be located on a land lot beside the former Cosipa plant, in the descending track of the cog railroad, in Cubatão. It should enable increasing the freight transportation to the Port of Santos from the current 80,000 TEUs to 330,000 TEUs (containers equivalent to 20 feet), believes MRS.