1. Brazil Pacific Railway Crossing Project Strategic Plan of Korean Rail Industry
Copyright © by KRTC All rights reserved.

2. 1. Project Goals 2. Summary 3. Needs 4. Effectiveness 5. Scheme
Contents
1. Project Goals
2. Summary
3. Needs
4. Effectiveness
5. Scheme
6. Issues
7. Current status

3. 1. Project Goal
■ Korea will invest in Brazil for the development of natural
resources in order to increase the economic cooperation
between Brazil and Korea
○ : President of Korea visited Brazil
○ : President of Brazil visited Korea
■ Korea railway industry has a plan to develop the railway
project for route from Brazil to Chile for increasing
the capacity of inland transportation in Brazil.

4. 2. Project Summary ■ Project location, route, and distance
○ Location : Mato Gllossu dusul state in Brazil (Campo Grande)~
Chille (Arica port or Antofagasta port in Pacific area)
○ Length : 2,100km from Campo Grande to port in Pacific area
(total 4,500km in the East-West Railway cross Project)

5. Project Summary ■ Total Project Cost : about 70 billion $ US
○ Construction : 55 billion $ US (double track and non-electric)
○ Rolling stock : 5 billion $ US
○ Harbor & port : 10 billion $ US (based on 100million ton capacity /year)
■ Project Schedule
○ Project Execution Schedule will be determined after Feasibility Study
○ Feasibility study will be performed on early November 2006
■ Finance Source
○ Private + Public Fund
○ Private Fund

6. 3. Needs of Project
■ Only 10% natural resources could be developed due to
the worst transportation system and infrastructure in Brazil.
○ Total deposit volume of major natural resource in Mato Glusso State
• Iron Ore : 1 billion ton
• Manganese : 250 million ton
• Granites : 150 million ton
• Marble : 149 million ton
• Limestone : 3 billion ton
• Soybean : world 2nd production country
• Bio alcohol : annual 486million liter production(9 factories exist)
○ Brazil has sufficient mineral & grain resources such as iron ore,
manganese, granite, limestone and soybean, and is famous worldwide
for livestock industry. Mato Glusso State has a major area for the
resources in Brazil.

7. Needs of Project ■ Export volumes to Asian countries such as iron ore
and soy bean have been growing rapidly.
○ In case of iron ore:
■ Current export transportation route requires the
excessive freight cost.
Brazil inland ☞ Santos in Atlantic ☞ Panama water canal
☞ North-east Asian country (total length of this route : 21,949km )
■ The current capacity of transportation reached a limitation
due to insufficient line of railway infrastructure.
Past 10 years
After 2007
Korea(POSCO)
30million ton/year
70million ton/year(4.2bil$US)
China
100million ton/year(7.0bil$US)
Japan
70million ton/year

8. 3. Needs of Project
■ For the circulation of productions and industries in Bazil,
Pacific Cross railway line should be urgently constructed.
○ Brazil inland ☞ Arica in Chile ☞ Pacific ☞ North-East Asia
• Shortening the distance by 6,550km • Reducing the time by 10 days
(1.5 billion $ US saving based on 100 million ton /year )

9. 4. Effectiveness of Project
■ Good relationship between Korea and Brazil for economy,
trading, and other business for both countries.
   
■ With Korean railway and harbor industries participating,
Brazil can develop efficiently their natural resources
and have a rapid economic growth.
■ By changing the transportation route to Asia, freight cost
can be cheaper than the current route using Atlanta.
○ profit ☞ distance reduced : 7,500km, time saved : 10 days
○ cost saving ☞ 3.9 billion$ US /year based on 100 million ton/year

10. 5. Project Scheme ■ Project Flow Chart
• Identification of Needs and Route
• Consulting & conference
• Technical and Economical Review
• Preparation of the Basic Plan
• Determine the system of Railway & Harbor
• Project schedule/Execution/Finance
• Preliminary Design
• Detail design
• Method statement per system
• Select Contractor/Construction Management
• Start up for the Rail & harbor Operation
• Complement with System Interface
• Opening and Commercial Operation

11. Project Scheme

12. 6. Issue ■ Difficulties in fund raising due to vast project cost.
○ Private fund + Public fund ☞ Brazil Government % (35 billion $ US)
Korea Private Fund % (35 billion $ US)
○ Only private fund ☞ Korea private investment fund 100% (70 billion $ US)
■ As this Pacific railway cross project as a Pacific silk
road will be processed with private fund, the government
support from both country are imperative.

13. 7. Current Status
○ 2005.  3. 10  :  Project consulting co. has been established after review and
issue the Pacific crossing railway project as priority by Mato
Glusso State in Brazil.
• Brazil : KAIZEN GROUP + Korea : ASILA Co.
○ 2005.  :  MOU was signed between the Mato Glusso State and the project
Consulting co.
○ 2005.  :  The Mato Glusso State in Brazil invited the Korea Railway
specialist group for consulting the Project.
○ 2005.  8. 9~16 :  Korea Railway specialist group visited in Brazil to consult
the Railway Project promoted by Mato Glusso State.
○ 2005.  : MOU was signed between state government and Korea railway
specialist group for the efficient process of the Project, which
says the feasibility study would be performed at once.
○ 2005.  : MOU for the feasibility study was signed between
FERROVIA NOVOESTE and Consulting Co.
○ 2006.  : Negotiation on the Feasibility Study contract

14. Level of Korean Railroad Technology
■ Korean Railroad started to operate Kyung-in line(3.2km) from Sep.18,1899
■ Korea Train Express (KTX) between Seoul and Pusan is running with max. speed of 300km/h from April 1,2004
■ KHSR-350(350km), new developed train, will be launching to operate from end of 2007
■ Korean railroad technology has been advanced to the level of international standard based on highly advanced technology accumulated by executing Korea High Speed Rail project which includes planning, design, construction, train manufacturing, production of materials, operation & maintenance
■ Korean railroad industry preparing for 21 Century, is pursuing railroad projects abroad based on highly advanced technology of railroad

15. Thank you