Ferrovia Tereza Cristina

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In November 1996, Ferrovia Tereza Cristina won a 30-year concession for the rehabilitation and operation of the 184 km Tereza Cristina railway network in Brazil. In 1995, the Brazilian government decided to divide the national railway, RFFSA, into six exclusive regional systems and to offer a 30-year concession contract for each system. This is one of the six concessions awarded between March 1996 and July 1997. Concessions were awarded on the basis of the highest bid above the government's minimum price. Concessionaires paid an upfront lump sum, and a stream of pre-determined payments over the life of the concession. Unlike in Argentina, concessionaires have no control over initial employment decisions. The winning consortium, Ferrovia Tereza Cristina. comprised the following sponsors: MPE Group (Montagem e Projetos Especiais) and Banco Interfinance. The consortium paid R$16.6 million for the concession (approximately US$ 16 million). MPE was planning to make investments of US$ 22 million in the railway during the concession period. The railway's main cargo is Charcoal. As of December 2003, Ferrovia Teresa Cristina was controlled by Geral de Engenharia e Montagens - Gemon (30%), Interfinance SA (30%), and Santa Lucia Agroindustria (30%). Between 1996 and 2012, the sponsor invested US$ 23.8 million (BRL 46.5 million) in its infrastructure. The investments undertaken by Ferrovia Tereza Cristina year by year, were 1997 - US$ 3.3 million (R$ 3.7 million) 1998 – US$ 3.3 million (R$ 4 million) 1999 – US$ 2.1 million (R$ 3.8 million) 2000 – US$ 0.8 million (R$ 1.6 million) 2001 – US$ 0.6 million (R$ 1.3 million)