THE NEW RAILROADS AND THE BRAZILIAN LOGISTICS OF TRANSPORTS

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THE NEW RAILROADS AND THE BRAZILIAN LOGISTICS OF
TRANSPORTS JOSÉ FRANCISCO DAS
NEVES PRESIDENT MOSCOU, JULY - 2009
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BRAZILIAN CONCESSION RAILROAD PROGRAM JOSÉ
FRANCISCO DAS NEVES PRESIDENT
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VALEC Engenharia, Construções e Ferrovias S.A.

• Public company, linked to the Ministry of
  Transport.
• Social function is to build and explore railway
  infrastructure.

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RAILROAD VALEC CONCESSIONS
BELÉM
EF 151 (2.750 km)
BOQUEIRÃO DA ESPERANÇA
FIGUEIRÓPOLIS
VILHENA
EF 334 (1.490 km)
URUAÇU
ILHÉUS
EF 354 (4.400 km)
ESTRELA DOESTE
EF 267 (750km)
PANORAMA
PORTO MURTINHO
LITORAL DO RIO DE JANEIRO
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CURRENTLY IMPLEMENTATION STAGE OF NORTH-SOUTH
RAILROAD EF 151
Project Finalization Phase 493 km
(Conclusion 2013)
BELEM
AÇAILÂNDIA
Concluded - 571 km -
GUARAÍ
PALMAS
In construction -1.003 km - (Conclusion 2010)
OURO VERDE
ANÁPOLIS
Project Finalization Phase - 680 km
- (Conclusion 2012)
ESTRELA DOESTE
Total Extending 2.750 km
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VALEC RAILROAD SUB-CONCESSIONS NORTH-SOUTH
RAILROAD
Concession in Study
Belém
SAO LUIS
Açailândia
1th Sub-concession ( 2007) 720 km
Palmas
Next Sub-concession 1.535 km (R 3,5 bilhões)
Estrela DOeste
RIO DE JANEIRO
SANTOS
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NORTH-SOUTH RAILROAD CARGO DEMAND ESTIMATED
(TONS.MIL)
Total Cargo Estimated 100 millions de tons year.
Main Products Soybeans and derivatives, 
Fertilizer, Derivatives from petroleum, Maize,
Sugar,  Cotton , Iron ore.
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CURRENTLY IMPLEMENTATION STAGE OF WEST-EAST
INTEGRATION RAILROAD - EF334
SÃO LUÍS
Total Extending 1.490 km
BELÉM
530 km
FIGUEIROPOLIS
413 km
BARREIRAS
547 km
CAITITÉ
EF 151
ILHEUS
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IMPLEMENTATION STATED PERIODS OF WEST-EAST
INTEGRATION RAILROAD - EF334
SÃO LUÍS
BELÉM
july of 2013
FIGUEIROPOLIS
december 2012
BARREIRAS
july 2011
CAITITÉ
EF 151
ILHEUS
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WEST-EAST INTEGRATION RAILROAD CARGO DEMAND
ESTIMATED (103 TU)
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ECONOMICS BENEFITS OF THE NEW BRAZILIAN RAILROADS

• Offer a competitive transportation alternative to
  the long haul cargo flows long the North-South
  and East-West Brazilian inland territory
• Integrating of the main Brazilian regions.
• Reducing transportation costs of internal
  commerce and of exports.
• Leverage the sustainable development of the
  country.

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SOCIAL BENEFITS OF THE NEW BRAZILIAN RAILROADS

• Economic development of the states and cities
  along of the railroads.
• Improvement of the quality of life of the
  population.
• Exploitation and better distribution of the
  national wealth.
• Opening of new fronts of work.
• Jobs currently generated in the construction of
• North-South Railroad 21.140

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SUB-CONCESSION PROCESS

• Term of sub-concession 30 years
• Provides resources fully paid for the VALEC,
  as stipulated in the contract schedule and the
  announcement of the sub-concession.

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LEGAL FRAMEWORK OF THE SUB-CONCESSION PROCESS

• Law nº 8.987 ( February 13, 1995)
• Law nº. 9.074, (June 7, 1995 )
• Article 175 of the Federal Constitution
• Law nº 8.666 ( June 21, 1993)
• Law nº 9.648 ( May 27, 1998)
• Announcement of the sub-concession, and annex

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REQUIREMENTS FOR PARTICIPATION

• The participation of individual Brazilian and
  Foreign Companies is permitted.
• The participation of consortiums between
  Brazilian or foreign legal entities.
• Acquisition of the Public Tender Notification.
• Submitting documentation for pre-qualification
  under the condition that participate in a
  segment or activity compatible with the object of
  the Tender.

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STAGES OF THE BIDDING PROCESS

• Legal Qualification
• Technical Qualification
• Economic / Financial Qualification
• Regularity with FISCAL Requirements

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STAGES OF THE BIDDING PROCESS
A session will be held for delivery of BOVESPA
Instructions Manual only for Pre-qualified Tender
Proponents ( VALEC Special Tender Commission)
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STAGES OF THE BIDDING PROCESS

• SECOND STAGE AUCTION IN THE BOVESPA(The São
  Paulo Stock Exchange)

• Auction Participation Guarantee Deposit (two
  working days before the Auction date).
• Procedures shall be conducted according to the
  BOVESPA Instructions Manual.
• BOVESPA shall forward the Final Tender
  Classification.
• Homologation of the Final Auction Result.
• Publication of the Auction Results will made
  indicating the winning proponent.
• Creating a Specific Purpose Society for signing
  the contract.

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SUB CONCESSION PAYMENT

• NORTH - SOUTH RAILROAD ( EF 151)
• 1st Parcel - 50 of the winning Auction bid, at
  the time of financial settlement, upon the
  signature of the Sub concession Contract and the
  delivery of the railroad section defined as
  Palmas (TO) Anápolis (GO), scheduled for
  December 2010.
• 2nd Parcel - 25 of the winning Auction bid,
  upon the delivery of the railroad section defined
  as the Ouro Verde de Goias (GO) - Rio Verde
  (GO), scheduled for July 2011.
• 3rd installment - 25 of the winning Auction
  bid, upon the delivery of the railroad section
  defined as Rio Verde (GO) Estrela DOeste
  (SP), scheduled for December 2011.

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SUB CONCESSION PAYMENT

• WEST- EAST INTEGRATION RAILROAD ( EF 334)
• 1st Parcel - 40 of the winning Auction bid of
  financial settlement, upon the signature of the
  Sub concession Contract and the delivery of the
  railroad section defined as Ilhéus (BA) -
  Caetité (BA), scheduled for July of 2012.
• 2nd Parcel - 30 of the winning Auction bid,
  upon the delivery of the railroad section defined
  as Caetité (BA) - Correntina / Barriers (BA),
  scheduled for December 2012.
• 3rd Parcel - 30 of the winning Auction bid,
  upon the delivery of the railroad section defined
  as Figueirópolis (TO) - Correntina / Barreiras
  (BA), scheduled for July 2013.

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VALEC Engenharia, Construções e Ferrovias
S.A. SAN Quadra 3 Sala 1100 Edifício Núcleo
dos Transportes Brasília DF www.valec.gov.br
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