RZD International, a subsidiary of JSC Russian Railways, the operator of the Russian railway system, is interested in investing in the Brazilian sector concessions program. As part of a mission to Brasília led by Russian Deputy Minister of Economic Development, Alexey Likhachev, the general director of RZD International, Sergej Pavlov, recently told members of the Brazilian government the Russian company's objective of participating in the Investment Program in Logistics (PIL). To take the proposal forward, however, RZD said it needs to find a local partner. On the Brazilian side, the government considers that Russian investments in the railway sector would be welcome, whose concession program requires investments of R$ 99,6 billion in construction and improvements of 11 thousand kilometers of railway lines.
“RZD has great experience in operating railways and its entry into Brazil would be very positive. The company knows the whole business because it has a monopoly on the complex and grandiose operation in Russia, where most freight transport is carried out by train. But it needs a local private partner, who knows the country's legislation well, so that it can participate in the program”, said a source who accompanies negotiations with the Brazilian government, on condition of anonymity.
Last week, the delegation, made up of 10 executives in addition to the Russian deputy minister, visited separately the Minister of Transport, César Borges, and the president of the Planning and Logistics Company (EPL), Paulo Sérgio Passos. In both conversations, the Russians made clear their intentions to invest in the country and the search for a local partner, and clarified doubts about the Railways concession program. From Borges, the delegation heard that their expertise is welcome in the country and that Brazil would have a lot to learn as a Russian model.
At the EPL, deputy minister Alexey Likhachev confirmed that Russia is interested in investing in Brazil and transferring experience and technology from its railroads. After receiving de Passos the explanation that the investment program in railways is a new model of construction and operation in which the Brazilian government counts on the partnership of the private sector, they also received a positive scene. “Brazil is a market economy and those who believe they are able to invest in the country will be welcome”, said the president of EPL.
Adopting a posture of aggressive global expansion, in 2012 the Russians reached the position of the third largest transport company in the world. The company is a reference in the region and even to take supplies to Afghanistan, after the war, the allied countries resorted to RZD.
Recently, the company was the subject of controversy, after the president of JSC Russian Railways, Vladimir Yakunin, was included in the "black list" of sanctions by the United States, due to tensions in Ukraine. Yakunin is a former KGB officer and a personal friend of Russian President Vladimir Putin since 1990. In addition to JSC Russian Railways, he chairs the International Union of Railways (UIC). Under his leadership, the Russian government has invested $30 billion a year since 2008. A career diplomat, he has represented Russia in Brussels. Considered a member of the closed “Saint Petersburg circle”, he is quoted as a possible replacement for Putin in the Presidency.
After the Ukrainian Railways operator suspended the sale of national and international tickets to Crimea, it was announced that JSC Russian Railways would also interrupt traffic between Ukraine and Russia, but the company denied that it would adopt the measure.
JSC Russian Railways has a monopoly on Rail Transport in Russia, but in Brazil it will need a national partner to participate in the concession process, through its subsidiary RZD.
Source: Brasil Econômico
