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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: anializer who wrote (30857)	5/6/2008 5:51:59 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78644

Thanks. Appreciate the opinion and info. For right now, after reading America Latina posts here and while considering it, and determining I'd like some Brazilian transportation plays, I have decided that I'll up my [t]RIO[/t] position a little. (Too bad I've not added since my latest add in 2006.) Transportation/logistics is only a small part of RIO, so it's not such a great bet on the growth of the Brazilian transportation infrastructure, and not really enough of a sole reason to commit funds to RIO. Still for me, I'll take a chance on Vale's (RIO's) continuing to have good growth. ---------------------- "Logistics... From 2000 to 2006 Vale invested more than $1.3 billion on the acquisition of over 361 locomotives and around 14,090 freight cars, those locomotives were primarily for iron ore transportation, but some were for regular cargo. [56][57][58][59][60][61] Some of the locomotives purchased were secondhand for refurbishment but at least 55 of the locomotives acquired were new ones of the model EMD SD70M, each one costing about $2 million.[62][63] After those investments, Vale became the owner of over 800 locomotives and more than 35,000 freight cars [64] but the company informed that it will reduce its investment in rolling stock in the coming years.[65] Vale owns the concession of three Brazilian railways: Vitória a Minas railroad (EFVM), Ferrovia Centro Atlântica (FCA) and Carajás railroad (EFC). Ferrovia Centro-Atlântica and Vitória a Minas railroads Ferrovia Centro-Atlântica and Vitória a Minas railroads * Vitória a Minas railroad - Vale operates under a 30 year contract this 905 km railroad, which is used to transport iron from the Iron Quadrangle in Minas Gerais to the Port of Tubarão in the state of Espírito Santo . The concession expires in 2027. This railroad also carried 1.1 million passengers in 2006. * Carajás railroad - The concession of this 892 km railroad also expires in 2027, it links Carajás iron ore mines in the state of Pará to Ponta Madeira port terminal in the state of Maranhão. Vale plans to operate a train of 3.2 km and 340 cars on this railroad. * Ferrovia Centro-Atlântica - Vale controls this railroad through the subsidiary FCA. As it is shown on the Vale's operations map above, this 7,000 km railroad extends through 6 brazilian states, this railroad originally belonged to the RFFSA. Vale's concession of this railroad expires in 2026. Ports and Container terminals[66] * Port of Tubarão - Vale owns and operates this port located in Vitória in the state of Espirito Santo.[67] It's the largest iron ore embarking port in the world.[68] Around 80 million metric tons of iron ore are shipped through the this port,[69] this means that roughly 30% of Vale's iron ore production are shipped through the Tubarão Port. * Ponta Madeira port terminal - Located in the state of Maranhão, it ships around 70 million metric tons mostly of iron ore, but also of manganese and copper for the company. * Port of Sepetiba - Vale operates two maritime terminals in the Port of Sepetiba area located in the state of Rio de Janeiro, together they ship around 60 million metric tons of iron ore. Vale also operates port terminals in the state of Sergipe and two others in the state of Espirito Santo." Source: From: en.wikipedia.org