LLX signs MOU with FCA for Açu port-Nova Iguaçu railroad

Wednesday, August 24, 2011

Brazilian logistics firm LLX (Bovespa: LLXL3) and Ferrovia Centro Atlântica (FCA) have signed a memorandum of understanding (MOU) to develop technical feasibility studies aimed at building a railroad between Rio de Janeiro state's Açu port and the city of Nova Iguaçu.

The logistics corridor, which will end in the city's Ambaí neighborhood, is aimed at integrating Açu port with the national railway network, according to a release by LLX, which is building the port.

The new stretch will enable the transportation of various goods such as iron ore, steel, coal and general cargo as well as solid and liquid bulk.

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Located in northern Rio de Janeiro state, Açu port will have 40 mooring berths and the capacity to handle capesize bulk carriers. The port will house an industrial complex with steel, oil processing and cement and thermal power plants, among others.

Operations are expected to kick off by end-2012. The EBX group, of which LLX is a part, is investing 4.3bn reais (US$2.7bn) in the project. The group is owned by Brazilian tycoon Eike Batista.

FCA is controlled by Brazilian mining giant Vale.