BRAZILIAN freight operator VLI Logistics has signed a contract worth Reais 170m ($US 34.1m) with Progress Rail for eight EMD SD70ACe-BB diesel locomotives.
VLI, which holds the concession for the Central Atlantic Railway, is acquiring the new locomotives to expand its fleet working on that line’s Southeast corridor. Progress Rail will build the locomotives in Sete Lagoas, with delivery scheduled for the end of 2025.
The latest deal brings the total number of new locomotives ordered by VLI within the last year to 20, an investment of around Reais 430m. In March 2023 VLI signed a deal with Wabtec for nine ES-43BBI locomotives, which are due to be delivered later this year.
They will be used on the Eastern corridor of the Central Atlantic Railway, serving the port of Espírito Santo and the Northern corridor, where VLI operates the northern section of the North-South Railway.
“The continued investment in wagons and locomotives enables an even broader, more efficient and safer service to our customers,” says Mr Fábio Marchiori, VLI’s interim CEO and director of finance, supply chain and services. “And, at the same time, represents a strong stimulus to the national railway industry.”
The Southeast corridor is an important route for bulk agricultural traffic, as well as products such as fuel and minerals, connecting important grain and sugar-producing regions in the country to intermodal terminals in the Mineiro triangle and São Paulo.
Recently, private equity firm Brookfield increased its stake in VLI through the acquisition of some shares previously held by Japan’s Mitsui. The latter reduced its stake from 20% to 10%, while the Canadian investor is now the largest shareholder with 36.5%, surpassing Vale, which has 29.6%.
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