Brado, from ALL, creates plan for North-South

Brado, a company controlled by América Latina Logística (ALL), specialized in the transportation of containers, intends to start an operation on the North-South Railway still this year. The idea is part of a bigger plan, in order to displace loads from the Free Economic Zone of Manaus, that will require R$ 150 million on investments and also the use of waterways and roads.

The investment will be disbursed in order to buy wagons, locomotives, trucks and containers. A terminal will also be built in Imperatriz (MA) and an inland port in Anápolis (GO). Half of the total investment (or R$ 75 million) will be disbursed for the beginning of the operation, which will happen still this year – accordingly to the forecast of the company.

During the descent (from the North to the Southeast and South), finished  industrial products will be transported, such as motorcycles. During the ascent, consumer goods. “We saw this railway absolutely unexplored and we begun making studies in order to use it and make the transportation of containers to the Free Economic Zone something feasible”, says Alan Fuchs, president of the company. “Manaus manufactures products such as pharmaceutical and electronic products and motorcycles. At the same time, its population consumes goods that are not produced in the region, such as rice, chicken, toilet paper, teeth paste… So the quantity of goods that circulate there is tremendous.”

In order to be put into practice, the plan still needs the authorization of the Ministry of Transports – that recently concluded the North-South railway between Palmas (TO) and Anápolis (GO) and provided the market with the possibility of transporting goods in this stretch. Beyond Brado, VLI (a company that musters the previous logistic assets of Vale) has already expressed its interest.
Nowadays, Brado transports loads mainly in the railways controlled by ALL. “We still have a huge growth potential in ALL’s network, but we think: why not operate with others?”, he says. The company has recently begun to also use MRS concessions. “It works very well”, he says.

Accordingly to the sector’s regulation, the operator licensed as “independent railway operator” (or “OFI”) may use a railway even in case it is not under its concession.

For the new plan, Brado needs to pass through a stretch of North-South under VLI’s concession (the one from Açailândia to Palmas) and through another one under the control of the State-owned company Valec (from Palmas to Anápolis) “We are in the final phase of the negotiation with Valec and VLI”, says Fuchs.

Accordingly to him, the final investment will be added to the total amount that has already been mentioned in Brado’s original plan – of R$ 1,2 billion within five years. The chronogram suffered a delay and only gained traction after the entry of the Fundo de Investimento do Fundo de Garantia do Tempo de Serviço  (FI-FGTS or Investment Fund of the Government Severance Indemnity Fund for Employees). Almost R$ 600 million were invested up until today and now the prevision is to conclude it in 2018.

For the R$ 150 million of the new plan, Fuchs assures there is already credit available in the company and that the National Bank for Economic and Social Development (BNDES) will be the main financier. “We know the bank’s conditions changed a lot. We used to finance 90% of a wagon. We used to pay interest rates of 2,5% per year. Now it’s 50% of the asset and 9,25% per year. The bill becomes tougher and is less favourable, but it is still attractive”, he says.

Created in 2011, Brado has shareholders such as ALL, BRZ Investments, Deminvest, Dimitrios Markaki s and FI-FGTS. The last one joined in 2013, buying 22,2% of Brado for R$ 400 million.