Brazilian railroad America Latina Logistica S.A. (ALL) recently reached an agreement with Brasil Ferrovias S.A. (BF) to acquire BF’s three rail concessions for $678 million. Under the pact’s terms, BF's primary shareholders would transfer all their stock to ALL in return for 23 percent of ALL’s capital voting shares.
The deal is subject to approval by Brazil’s national land transport agency. ALL officials expect a decision within 30 days.
After acquiring BF's Ferrovias Bandeirantes S.A. (Ferroban), Ferrovias Norte do Brasil (Ferronorte) and Ferrovia Novoeste S.A. concessions, ALL will own Latin America’s largest railroad, operating more than 13,400 track miles and managing a fleet of 960 locomotives, 27,000 freight cars and 1,400 trailers, according to ALL. The railroad will serve Brazil’s Mato Grosso, Mato Grosso do Sul, Sao Paulo, Parana, Santa Catarina, and Rio Grande do Sul states, and Argentina’s Rosario, Mendoza, and Buenos Aires regions.
“As a result of the transaction, ALL will serve six of the most active ports in Brazil and Argentina, including Santos, Paranagua, Buenos Aires and Rosario,” ALL officials said in a prepared statement. “ALL also will be able to offer the state of São Paulo a complete range of logistics services, including rail, domestic and cross-border door-to-door multimodal transport, and warehousing.”
Source: Progressive Railroading Daily News
