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LatinNews Regional Monitor: Brazil & Southern Cone - 29 March 2019

In brief: Brazil

* Brazil’s infrastructure ministry has announced that Brazilian logistics company Rumo SA has won the bid for the 30-year concession agreement on the North-South Trainline (FNS) in an auction that took place in São Paulo’s stock exchange. The bid went for R$2.7bn (US$692m), 100.29% over the minimum asking price of R$1.35bn. The highest bid given that the bid of the only other company bidding, logistics company VLI Multimodal SA, was just 52.6% over the minimum asking price. According to the infrastructure ministry, the terms of the contract allow Rumo SA full use of the trainline, ensuring it is available for public use and that the infrastructure is maintained over the 30-year period, and the company can expect to make a profit through travel fares, transit fares, revenue from ancillary operations, and the exploitation of associated projects. The trainline covers a distance of 1,537km from Porto Nacional in the northern state of Tocatins, to Estrela d’Oeste in São Paulo state. Brazil’s President Jair Bolsonaro tweeted that the awarding of the concession is a “huge victory”.