BNDES releases US$ 1 billion for expansion of ALL
Valor Econômico
A R$ 2.15 billion (US$ 1 billion) loan by BNDES (National Development Bank) for ALL to implement its investment plan in the 2009-2012 period was approved yesterday. The company will invest a total of R$ 3 billion, 73% of which will come from funds of the BNDES at the cost of the TJLP (Long-Term Interest Rate) plus 2% of spread and nine years for repayment. ALL's strategy is to continue growing in transport capacity and volume of cargo between 10% and 12% a year, according to what Rodrigo Campos, IR director of the group, said to Valor.
The new plan presented to the bank, which has a participation of the block of control of the ALL group by means of the BNDESPar, pleased the institution, which currently has the financing of the railroad sector among its priorities. The director of ALL told this is the fourth credit line approved by the bank for the company since its privatization, in 1997. He believes between R$ 600 million and R$ 700 million (US$ 286/333 million) a year will be invested in the new investment plan.
The projected works include improvements in the permanent road, the acquisition of rolling stock and equipment, installation of a computer and safety system in the Malha Sul, Malha Paulista, Malha Oeste and Malha Norte railroad operators. The group will spend part of the funds in the acquisition of 58 new locomotives from the GE unit in Brazil and to restore and recover another 88 ones. More than 11 thousand wagons will also be acquired, recovered and restructured, in addition to the construction of terminals and yards for the transportation of cargo and enlargement of the permanent railroad.
The new investment plan of ALL, the largest railroad-based logistics operator of South America, whose railroad network has 21 thousand kilometers of extension covering six Brazilian states and the central region of Argentina, will contribute for the reduction of logistics costs and consequently of the Brazilian cost, said Adely Branquinha, head of the Transport and Logistics Department of the BNDES.