AMERICA Latina Logística is to take control of the Ferronorte, Ferroban and Novoeste concessions after signing an agreement on May 9 to purchase parent company Brasil Ferrovias from shareholders Funcef and Previ, both pension funds.
Under a deal worth R$1·41bn, former shareholders in Brasil Ferrovias will be granted a 20% stake in ALL, including development bank BNDES which will hold 12·77% in return for ALL taking on R$1·7bn of debt owed to the bank by Brazil Ferrovias. During 2005 Brasil Ferrovias had invested R$253m on track upgrades as well as the acquisition of 57 new locomotives and 650 wagons.
Subject to approval by national transport agency ANTT, the transaction would, according to ALL, increase the size of its network in Brazil and Argentina to 20496 km, with a combined rolling stock fleet of 960 locomotives and 27000 wagons. In 2006-09 ALL expects to invest R$2bn in its new purchases, with RS$500m earmarked for initial spending on rolling stock and infrastructure renewals. n