ANNOUNCEMENT 25 Sep 2018

On 25 September 2018, the National Bank for Economic and Social Development (i.e. BNDES by the acronym in Portuguese) approved three loans worth BRL 488.5 million (USD 118.5 million at the time of the announcement)for investments in the rail transportation sector. The three beneficiaries were MRS Logística, VLI Multimodal and MRC Locação de Equipamentos Ferroviários.

NUMBER OF INTERVENTIONS

4

  • 4 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 25 Sep 2018 | Removal date: open ended
Still in force

State loan

With regard to MRS Logística, the company will receive BRL 252.4 million (over USD 61.2 million at the time of the announcement) to invest in the purchase of 15 new nationally-produced locomotives, 577 hopper type wagons, and platform for transportation of agricultural products, steel and containers, as well as revitalize 50 other locomotives. 

MRS Logística already connects producing regions, large consumption centres and some of the largest ports in the country.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 25 Sep 2018 | Removal date: open ended
Still in force

State loan

In the case of VLI Multimodal, the announcement made by the BNDES on 25 September 2018 estates that the firm has received BRL 124.6 million (over USD 30.2 million at the time of the announcement). These resources will be distributed among two projects.

One project refers to the expansion of the transport capacity of eucalyptus trees. To this end, the company will purchase 178 platform-type wagons and will receive BRL 40.6 million (USD 9.85 million) to carry out this investment.

As to the second project, the objective is to increase the rail transportation capacity of agricultural products. To do so, the company will receive BRL 84 million from the BNDES (circa USD 20.4 million).

 
N/A
 
N/A
Inception date: 25 Sep 2018 | Removal date: open ended
Still in force

State loan

The announcement made by the BNDES on 25 September 2018 also estates that MRC Locação de Equipamentos Ferroviários will receive BRL 111.5 million (over USD 27 million) to purchase 11 new railway locomotives. These locomotives will be produced by the Brazilian locomotive manufacturer GE Transportation em Contagem.

Inception date: 25 Sep 2018 | Removal date: open ended
Still in force

Local sourcing

One key aspect emphasised in the announcement made by the BNDES on 25 September 2018, is that 26 new locomotives that are to be purchased with the resources of the bank will be nationally produced, representing about 25% of the average annual production of these machines in the country. Hence, this statement can be interpreted as the inclusion of local sourcing requirements in the conditions of the funding.