Transport minister Paulo Sergio Passos says the government is to initiate talks with ALL America Latina Logistica SA, Vale SA and other rail operators concerning new regulations intended to boost competition and cut freight costs. President Luiz Inacio Lula da Silva is to issue a decree aimed at increasing rail’s share of traffic. It is envisaged that the government would grant licences to use a portion of the rail’s capacity rather than awarding the full rights to a single company or group.

“By doing that, we’ll cut freight costs and create more competition,” Passos said recently in Brasilia. “Existing contracts will be respected.”

Brazil’s rail freight rates may fall as much as 40% as a result of the government’s new rules, land transportation agency head Bernardo Figueiredo told Bloomberg in a 6 July interview. The government will be responsible for building all tracks under the new regulations, expected to add some 15,000km to the network by 2020. Less than half the present total of 28,476km is running at capacity, the transport minister says.

Brazil’s central bank expects the country’s economy to expand by 7.3% in 2010, the fastest pace in more than two decades. Soya bean output in Brazil, the world’s second-largest producer after the USA, will rise to a record 68.7 million metric tons this year, while corn output will increase to a record 53.5 million tons, the agriculture ministry says.

Brazil wants companies such as ALL, Vale and MRS Logistica SA to help expand the nation’s rail network, which has not kept pace with record output of soybeans, coffee and other commodities. The investments will help increase the percentage of goods transported by rail to 35% by 2025, from 25% currently. This compares with 43% in the USA and 37% in China.

[ And with little more than 10% in South Africa. – editor

The Sistema Ferroviario Central railway is to be developed from 2011 to 2014. Concessions institute Inco is currently working on a new tender process for the Sistema Ferroviario Central, after a corruption scandal led to the suspension of the tender process for concessioning the line in 2009.

The equipment will permit Metro de Santiago to reduce intervals between trains on line 1, thereby carrying additional passengers per hour. This will make a 20% increase possible in the approximately 1 million passengers per day. Implementation, due to begin in September 2010, is to be effected without service interruption.

The AC44i locomotives are powered by diesel engines supplied by GE Transportation’s manufacturing plant in Grove City, Pennsylvania, USA. The locomotives feature GE’s unique AC individual-axle traction-control technology that enables the Model AC44i to haul heavier loads by significantly reducing slippage on start-ups, inclines and sub-optimal track conditions. Model AC44i locomotives are equipped with dynamic braking in addition to air brakes, to provide smoother handling when hauling heavy loads.

The locomotives will be built by GE Transportation South America, GE Transportation’s affiliate facility located in Contagem, Brazil. They are scheduled for delivery before the end of 2009.

Since 1967, GE Transportation South America has built diesel-electric locomotives including AC44, Dash 9 and the C Series in Brazil and has produced more than 1,000 locomotives currently operating in more than 15 countries around the world. Globally, approximately 17,000 GE locomotives are in use in more than 50 countries.