MRS invests to expand the general freight market

To expand its share in the general freight transportation market, MRS Logística placed this month an order for 218 cars aimed to this business. The contract amounting to US$ 27.2 million has been signed with Maxion and Randon, two large manufacturers of rail equipment in the country.

Eduardo Parente, CEO at MRS, said that the purpose of the concessionaire is doubling the volume of general freight carried today. According him, this type of freight represents 20% to 25% of the total volume annually carried by the company, estimated in 154 million tons in 2011. Iron ore is the major freight carried.

Products that comprise the so-called general freight include steel, paper pulp, cement, pig iron, scrap, containers, among others, in addition to grains (soybean and corn) and sugar. Parente informed that, since the beginning of the concession, in 1996, MRS grew fourfold the general freight volume carried. Although the earning margins are very narrow, the executive manager observed that the company established long-term agreements with its key shippers, under advantageous conditions, which justified such investment.

MRS is controlled by Cia. Siderúrgica Nacional (CSN), Usiminas, Gerdau (three large manufacturers of plain and long steels in the country) and Vale (largest Brazilian producer of iron ore).

The order will increase by 15% the current fleet dedicated to the transportation of iron-steel products. “The new freight cars should bring greater scale gains and performance, as they will provide capacity up to 98 TUs (payload tons) of freight. The current figure is 70 TUs. As they run less per month when compared with the cars that carry iron ore, the new cars will provide higher productivity,” informed Parente. This year, the estimated figures indicate the transport of 6 million tons of steel.

Thus, MRS will be capable to meet the expected demand growth of 12% for iron-steel products in the next year when compared with 2011, informed the executive manager. At the same time, the company is investing in a network of container terminals in São Paulo in partnership with Contrail / EDLP for achieving 1.2 million containers aimed at transporting freights to the Port of Santos per year.

The investment will rely on a financing via Finame BNDES program – 80% of the total value, with 10-year amortization. The car delivery schedule includes 68 units in December and 150 in January and February.