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2013 Sustainability Report

 
 

Infrastructure investments

Duplication of the Paulista Network

Investment in infrastructure on the Campinas-Santos line (São Paulo) – part of ALL's Paulista Network – is a priority in the company's strategic planning. The stretch is 264 kilometers long and links the interior of Sao Paulo state with the Port of Santos. It is also part of the most important freight corridor in Brazil, transporting agricultural commodities for export, accounting for approximately 60% of ALL's freight volume (TKU – tons per kilometer). The works involve investments of around R$ 600 million in track superstructure, which will revert to the grantor at the end of the concession contract.

In March 2014, a significant step was achieved towards the realization of the project. The environmental authority Ibama (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis) issued the license necessary for works on the Embu-Guaçu to Evangelista de Souza and Paratinga to Perequê stretches of the railway. This license is valid for four years.

ALL projects that the works on the two stretches of the Campinas-Santos railway will be concluded in the first quarter of 2015. Once finalized, freight capacity on these lines will more than double (see the Positive impacts table).

The works on the Campinas-Santos railway began in 2011. In 2013, the line connecting Perequê and Valongo was inaugurated. In addition to duplicating the line, with the installation of sleepers, tracks and the construction of bridges, ALL installed a pioneering locomotive traffic control system, which permits the automatic exchange of information between the locomotive engineers and the control center, boosting operational efficiency and safety.

In 2014, ALL expects to conclude the duplication of the stretch between Boa Vista (in the municipality of Campinas) and Embu-Guaçu. The line crosses 11 municipalities: Campinas, Indaiatuba, Salto, Itu, Alumínio, Mairinque, São Roque, Cotia, Itapecerica da Serra, São Lourenço da Serra and Embu-Guaçu.

Before and after

The capacity generated by the duplication of the Campinas-Santos line will result in a higher share for rail transportation in Brazil's transportation matrix.

Social and environmental gains

The duplication of the Campinas-Santos railway will contribute significantly to making the Brazilian logistics network more competitive. In addition to economic gains, it will generate social and environmental gains for the communities concerned.

  • Fewer trucks on the roads
    The improvement of the railway logistics network in the region will drive an increase in the transportation of agricultural products by rail. It is estimated that this will help to remove 30 thousand trucks from the roads, economizing 100 million liters of diesel fuel per month.
  • Emissions reductions
    The use of rail transport along the complete route will enable monthly reductions of 71% in carbon gas (CO2) and 82% in nitrogen oxide (NOX) emissions, compared with road freight.
  • Structural improvements
    The duplication works will cut the urban perimeters of 16 cities and include 35 bridges, tunnels, viaducts and other interventions along the route. The works will also provide the surrounding communities with gains in safety, due to the licensing requirement of building four footbridges on the Embu-Guaçu to Perequê stretch and the elimination of 15 level crossings, currently the object of specific studies and discussions with local governments.
  • Positive legacy
    To reduce the social impacts caused by the works, ALL implemented two Instituto ALL projects in the affected cities. These are the Knowledge Railcar and the Environmental Railcar, aimed at providing the local population with information on environmental preservation and safety.
  • Environmental programs
    The installation licenses granted to ALL include conditions such as the execution of environmental plans and programs (further information in the Rumo Project blog).
Positive impacts caused by railway
Current Duplicated Line
Trucks removed from roads 1,500
Average speed 7 kph 22 kph
Transit time 38 hours 12 hours
Railcars 5,920 1,920
Trains stationary 28 hours 2 hours

 

Indigenous communities

The Campinas-Santos railway duplication project also involves programs to strengthen indigenous organizations. The objective is to fulfill requests made by indigenous communities living in the region (read more in Traditional communities).

The Campinas-Santos railways crosses the areas of influence of six indigenous territories in the state of Sao Paulo. In an agreement with the indigenous people's agency Funai, ALL carried out an ethno-environmental study in the region. To mitigate the socio-environmental impacts of the duplication works, ALL has elaborated and will execute eight programs for Tupi and Guarani indigenous communities in the region. These include initiatives to generate income, develop indigenous culture, community improvements, the installation of railway signs, support for healthcare services and for training. There are also plans for Guarani cultural centers aimed at valuing indigenous culture and promoting tourism.

 

 

Rondonópolis Intermodal Complex

ALL reached an important milestone in its growth strategy with the September 2013 inauguration of the Rondonópolis Intermodal Complex (CIR) in Mato Grosso. The project consumed investments of some R$ 730 million in the expansion of 260 kilometers of tracks connecting the municipalities of Alto Araguaia (Mato Grosso) and Rondonópolis (Mato Grosso), a strategic location close to Brazil's western frontier in the Northern Network. More than R$ 150 million was also invested in the construction of the ALL transshipment depot which is part of the complex.

The project is part of the federal government's PAC 2 (Growth Acceleration Program) program and is one of the largest railway projects developed and financed by private initiative in Brazil. The complex expands the potential of railways as a solution for freight on the largest grain export corridor in the country, which stretches from the Midwest region to the Port of Santos.

The Rondonópolis Intermodal Complex occupies an area of 385.1 hectares – equivalent to 900 football fields. The new ALL terminal went into operation when the complex was inaugurated. This has the capacity to load 120 grain railcars every 3.5 hours and to transport more than 2.6 billion TKU (tons per kilometer, an indicator of rail freight volume) per year. Construction of the railway infrastructure for the complex, including the laying of tracks and the building of production units and workshops, generated around 30 thousand jobs in the region. When it went into operation, the terminal generated 300 direct jobs.

Another 20 companies are expected to install terminals and plants in the complex, generating estimated additional investments of R$ 700 million over the next five years and further increasing the number of jobs created in the region, as well as expanding product warehousing and transshipment capacity. These include Brado Logística, which is already operating its terminal in the complex with an annual throughput capacity of 240 TEU (twenty-foot equivalent units).

In line with ALL socio-environmental responsibility guidelines, the project included initiatives to monitor water quality, soil integrity, flora and fauna and to rescue wild animals, as well as archeology and social programs. A total of R$ 25 million was invested in identifying and mitigating the impacts generated by the expansion of the railway network on the surrounding communities and the environment.

The inauguration of the complex also promotes environmental gains for the region. Its freight capacity is equivalent to that of around one thousand double trailer trucks, which will no longer circulate on the highways given the alternative of rail transportation.

 

Eldorado Project

This project conducted in partnership with Eldorado Brasil involves the outbound logistics for the company's pulp factory in Três Lagoas (Mato Grosso do Sul). The plant reached its full production capacity at the end of 2013 and is expected to produce around 1.5 million metric tons of pulp annually, of which 800 thousand metric tons will be transported by ALL. The project includes investments in rolling stock (railcars and locomotives), track superstructure improvements and the construction of transshipment depots in Aparecida do Taboado (Mato Grosso do Sul) and Santos (São Paulo).