MRS

completed

MRS Logistica S.A. (MRS or the company) operates a 1,674 km freight rail network connecting Brazil’s three largest industrial regions -- São Paulo, Minas Gerais, and Rio de Janeiro -- under a 30-year concession granted by the Brazilian federal government in 1996. The company’s rail network consists of four primary lines and a branch line that link Brazil’s principal iron ore mines and steel plants, its largest consumer markets, and its principal sea ports. MRS currently operates a rolling stock fleet comprised of 143 owned and 319 leased locomotives; and 1,890 owned, 1,858 customer-owned, and 9,638 leased rail cars.MRS is implementing a five-year investment program that includes permanent way expansion, track reconfigurations, signaling improvements, and additional rolling stock acquisitions and upgrades, intended to increase the capacity of the company’s network while also improving its efficiency, productivity, and safety. The expansion is expected to increase the company’s freight handling capacity from around 100 million tons p.a. at present to up to 160-180 million tons by 2009. The IFC is considering a $100 million corporate loan package to support the company’s capital investment program