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Brazil’s railway company Companhia Ferroviria do Nordeste (CFN) is to receive financing from BNDES in the amount of R144mn.

The facility aims at permitting productivity and profitability gains, allowing a higher commercial speed of trains and an increase in the quality and capacity of cargo transportation. The investment will increase the competitiveness of companies located in northeastern Brazil, which use CFN’s logistic services.

It is expected that the commercial speed (which includes loading and unloading and stops) will rise from 10km/h to up to 22km/h in some instances. Therefore, the cycle (timing in which a train is loaded, travels the defined distance, unloads and returns for a new loading) may be reduced by up to 60%. It will be possible to transport more cargoes with the same amount of wagons and locomotives. It is expected that CFN’s annual cargo capacity will increase, in the current year, from 1bn TKU (tons per useful kilometre)/year to 1.3bn TKU/year.

CFN’s shareholders are Companhia Siderrgica Nacional (CSN) and Taquari Participaes (a non-operational holding company of the group). CFN’s operating activities started in January 1998, alongside the beginning of the 30-year network concession period.

CFN’s active fleet is comprised of 93 locomotives and 1,388 wagons, of which 1,237 are leased from RFFSA and the others are rented from other railways.