Rail system can pay $786.9 million in Rio

SuperVia, a consortium led by Odebrecht Transport that operates the rail system in the State of Rio de Janeiro, intends to handle $786.9 million in the sale and assignment of rights of use of lands, as well as partnerships for construction of real estate projects along railroads in the metropolitan region of Rio de Janeiro.

The amount of $786.9 million is what we have initially estimated. But I hope to handle even more. The market is going to say if the deal is worth more, said the CEO of SuperVia, Carlos José Cunha. According to the concessionaire, half the value will come from the modernization and expansion of Central do Brasil.

The expansion of the station to increase the capacity of enger traffic, the construction of a two-story shopping center on the rails and the conversion of an adjacent building into a hotel are expected. The project of Central do Brasil will be done anyway, with or without partnership. It is our priority, Cunha said.

There are also plans to build malls integrated to the Caxias and Nilópolis stations, as well as to expand the commercial facilities over the Madureira station. Projects were made for lands in Belford Roxo and Bonsucesso, among others. The types of contracts (that will be made) are still open. Companies can buy the rights of use or propose a partnership to implement an enterprise in some land, the executive said.

SuperVia says there is undeveloped potential for projects in Campo Grande, Pavuna, São João de Meriti, Méier, Bangu and Santa Cruz. The consortium claims that the lands are legalized and have air utilization released. However, Cunha said that the available areas belong to SuperVia under concession, with 36-year exploitation rights. Then they go to the State.

Any new development should have as premise the 36 years of concession. But from our experience and from what we have seen in the international market, this term is absolutely sufficient for the amortization of investment to be made, said Secretary of Transportation of the State of Rio de Janeiro, Julio Lopes.

The numbers were presented yesterday to representatives of the construction industry, as José Conde Caldas, from Concal Construtora and President of the Association of Real Estate Business Executives (Ademi-Rio). The intention was to convince the business community that the modernization of the rail network undertaken by the concessionaire provides good business opportunities in the suburbs and in Baixada Fluminense. Some regions were great for real estate projects, but they did not happen because to live in Bangu one took hours to get to work, Caldas said.

SuperVia plans to invest $1.18 billion over the next four years for modernization and acquisition of trains, as well as for the recovery of the rail network and stations. The resources come from financing from the World Bank ($590.2 million) and the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social – BNDES) ($442.63 million), plus the company’s own investments ($147.54 million). The goal is to increase the daily number of transported engers from the current 600,000 to 1.5 million by 2016. To do this, the concessionaire expects to reduce the headway.

The State bought 30 new Chinese trains, of which 26 are already in operation, and will sign the purchase of another 60 trains tomorrow. SuperVia will buy another 30 trains, which are already under negotiation, awaiting the shareholder approval. Odebrecht Transport has 60% of SuperVia, and the remaining 40% is owned by investment funds. The concession agreement with the State is valid until 2048.