Carajas Railway

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In 1997, CVRD received a 30-year concession to operate and make any necessary maintenance and expansion investment on the railway linking the ore mining of Carajas to the marine port of Ponta Madeira. In 1997, 703,000 passengers and 49 million tons of freight were transported on the railway. In December 2000, CVRD approved the US$ 30 million project to modernize the facilities of the Carajas Railway. This project was expected to last for 3 years. In July 2007, Vale was granted a loan from BNDES to finance the expansion of the railway. The total investment was estimated at US$ 718 million (BRL 1.4 billion), while the loan granted was of US$ 397 million (BRL 774.6 million). The total capacity of the railway was expected to increase from 70 to 103 million tons per year. In 2011, Vale announced its plans to rehabilitate and expand the Carajas railway. The total investment was estimated at US$ 4.1 million (BRL 8 billion). In September 2012, a US$ 1.9 billion ((BRL 3.8 billion) loan was granted by BNDES to finance the investment. In January 2014, Vale issued four bonds worth US$ 425.4 million (BRL 1 billion) to finance the expansion of the railway. The investments undertaken by Carajas Railway year by year, were 1997 - US$ 28.7 million (R$ 32 million) 1998 – US$ 45.4 million (R$ 54.8 million) 1999 – US$ 16.4 million (R$ 29.6 million) 2000 – US$ 36.2 million (R$ 70.6 million) 2001 – US$ 7.7 million (R$ 17.1 million) 2002 - US$ 33 million (total investments in the three railways of CVRD - Carajas, Vitoria a Minas and Ferrovia Centro Atlantica) 2003 - US$ 274 million (total investments in the three railways of CVRD - Carajas, Vitoria a Minas and Ferrovia Centro Atlantica)