February 10, 2015

Brazil increases rail vehicle production in 2014

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THE Brazilian Railway Industry Association (Abifer) says that Brazilian rail vehicles industry production increased substantially in 2014, with the industrial sector producing and delivering 4703 freight wagons, which was more than double the 2280 produced in 2013, and 374 passenger coaches, an increase of 70% from 219 in 2013. Locomotive production remained static at 80 units.

Total revenues for the railway industry, including its supply chain, was Reais 5.6bn ($US 2.02bn), a 24% increase compared to Reais 4.5 billion reported in 2013. The increase in production is in line with continuing government and private investments in urban rail. For 2015, projections indicate production and delivery of 4000 wagons (75 for export), 420 passenger coaches (90 for export) and 90 locomotives (10 for export), with slight revenue growth forecast.

Abifer says Brazil's rolling stock renewal programme, which will guarantee a minimum level of production for its freight wagon and locomotive fleet (IRJ December 2014 p18), the expansion of railway network, and continued investment in the passenger sector is set to sustain demand for Brazil's railway industry over the next few years.

"The Brazilian railway industry continues to invest strongly throughout its supply chain, both in high-tech applications and training of its workforce, along with the construction, expansion and modernisation of its plants," says Mr Vicente Abate, Abifer president. "Industry investments planned for 2014-2016, are between Reais 400 and Reais 600m. Technological innovation in all of its products is working to increase the productivity and competitiveness of its customers."

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