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ABIFER na mídia internacional – Brazil’s train manufacturers looking at bleak 2023

16.02.2023 | | Notícias do Mercado

Fonte: BNAmericas
Data: 15/02/2023
Por: Rogerio Jelmayer

Brazil’s train manufacturing sector is pessimistic about 2023.

“Our forecast for 2023 is not positive since the current backlog for this year is at around 600 wagons and 29 locomotives so far. We are unlikely to reach the levels seen in 2022, which was already a year of decline,” Vicente Abate, president of rail equipment manufacturers’ association Abifer told BNamericas.

Last year, 1,300 freight wagons and 54 freight locomotives were delivered but no sales in the passenger segment were registered, according to Abifer. In 2021, 1,800 freight wagons and 67 locomotives were delivered, plus 35 passenger trains.

Abate blamed economic uncertainty and delayed concession renewals.

“Perhaps in 2024 and 2025 we will see more positive years, with some rail projects tending to advance, as is the case of mining company Bamin in Bahia state,” said Abate.

Bahia Mineração (Bamin), a subsidiary of Kazakhstan’s Eurasian Resources Group, is investing 20bn reais (US$3.84bn) to develop Pedra de Ferro mine in Caetité, Bahia state, along with the construction of section 1 of the Oeste-Leste (Fiol) and the Porto Sul rail lines.

Malha Oeste concession

The government announced on Wednesday in the official gazette that logistics company Rumo‘s Malha Oeste concession will remain with the firm for the next 24 months, after which a new contract will be offered.

In 2020, Rumo announced plans to return the concession, which was set to expire in 2026. Rumo wanted to focus on other concessions that demanded high investments.

Companies may return concessions for any reason, but the process is slow and authorities analyze if any party to the contract must pay compensation.

The Malha Oeste decision is negative, since the lack of an auction means no new investment announcements and train purchase orders, according to Abate.