Presentation on theme: "Jean Carlos Pejo - Chairman ALAF Brazil October 23, 2014"— Presentation transcript:
1 Jean Carlos Pejo - Chairman ALAF Brazil October 23, 2014 sd INTERNATIONAL FORUM OF THE RAIL TARIFF REGULATORS Incentive regulation and attraction of investments in rail infrastructureJean Carlos Pejo - Chairman ALAF Brazil October 23, 2014
2 2sd INTERNATIONAL FORUM OF THE RAIL TARIFF REGULATORS Current Situation10 private operators under concession1 operator under state managementTotal Length: kmCommercial lines: less than 50%Vertical concession model
3 Vertical Concession Mode The operator is responsible for,construction and maintenance of infrastructure, electrical system and rolling stocks, including yards, warehouses and terminalsoperation trains,marketing and sale of shipping policy,all logistical operation.Freight tariff policyRegulatory Agency defines the maximum rate as a function of product transported and the distance.Consistent with this condition, the private operator has full freedom to define the value of fare.
4 Vertical Concession Mode DisadvantagesFavors the use of the railroad to the owner shareholdersFavors the operation only to more profitable segments,Selectivity of clients,Facilitates the centralization of power and cartelizationAllows sections under concession with low quality maintenance
6 PIL Logistic Investment Program TARGETBuild new railways to integrate the areas of highest concentration of agricultural production and mineral extraction to the portsConstruction of approximately 11,000 km of heavy haul railwayImplement the model of horizontal management , to allow the operating system to “open access”Encourage the use of rail and thereby allow considerably increase the share of rail transport in the modal matrix
7 Horizontal Concession Manager of Railway Infrastructure (GIF)The infrastructure manager is responsible for the construction and maintenance of permanent way, the courtyards, the fixed electrical systems (signaling, energy, etc), and will be the operator of the Operational Control Center. The GIF is responsible to provide for the various train operators the operational slotsIndependent Rail Operator (OFI)Responsible for the rolling stock fleet (owned or rented)Responsible for driversResponsible for the operation of trainsResponsible for the supply of lubricants and fuelsResponsible for the implementation of terminalsMust pay for the use of slot
8 PIL Logistic Investment Program Role of GovernmentThe government assumes 100% of the demand risk .A State Company (Valec) will buy all slots from de GIF (Infrastructure Company)BNDES ( Brazil Develop and Social Bank) may financial until 70% of CAPEX, in special conditions of interest rates and termsBefore the beginning of the construction the GIF can receive 15% of CAPEX in advanced payment, due the receivables from the sale of slotsIt will be 12 branchesConcession/PPP - 35 years
9 PIL Freight tariff policy Role of Government At the time it was placed to the market, the proposed expressions of interest for 6 sections of new railways, totaling 4300 km in length. This phase is expected to be completed in May / 2015.In this context it is possible to bid on the first PPP (Public Private Partnership) in the 2nd half of 2015Freight tariff policyThe VALEC (government company) will be responsible for the sale of slots to OFI (Independent Rail Operators).The OFI will have the task of selling the shipping to end customers) .
10 2sd INTERNATIONAL FORUM OF THE RAIL TARIFF REGULATORS ConclusionsWith the construction of the railroad in the regions of strong agricultural production, this modal will be chosen by farmers to reach portsThe Horizontal model will allow the entry of new operators in the logistics business and can motivate them to leave the road transportation to the railroad The number of customers of railways in Brazil remains small, maintaining the conditions of the period of state management (before 1997). Probably the change of the concession model corrects this distortion.New Matrix – Forecast 2023Roads & Trucks 33 %Railways 32 %Waterway 29 %Pipelines 5 %Air 1%
11 2sd INTERNATIONAL FORUM OF THE RAIL TARIFF REGULATORS большое спасибо !Thank you so much!Muito Obrigado!Jean Carlos PejoALAF – BrasilFacebook: Jean Pejo