LLX Logistica SA (LLXL3), the transportation company controlled by Brazilian billionaire Eike Batista, will complete studies by the end of the first quarter on whether to expand a railroad to serve its Acu port in southeast Brazil.
LLX is studying a plan to add a 45-kilometer (28-mile) line linking the Ferrovia Centro Atlantica SA railway to Acu, being built in Rio de Janeiro state, Chief Executive Officer Ricardo Antunes said today in a conference call with investors.
The new track would help the export of iron-ore and steel and the import of coal because the 8,066-kilometer railway links the coast of Rio de Janeiro to Bahia, Espirito Santo, Goias, Sergipe and Minas Gerais states, according to the Web site of Cia. Vale do Rio Doce, which controls the railway.
Apart from LLX’s recent decision to temporarily suspend its development of a port at Peruibe in Sao Paulo state, LLX’s investment plan is “fully preserved,” Antunes said on the call.
“We will raise the necessary capital resources for the company’s plans at the end of the year, possibly via a loan,” he said. Batista may also add some funds, Antunes said.
LLX’s Acu port, scheduled to start in 2011, requires an investment of $1.6 billion. The company’s Porto Sudeste port, being developed at Itaguai, Rio de Janeiro state, to export 25 million tons a year of iron ore, requires $380 million.
One of Acu’s main export customers will be Anglo American Plc (AAL), which is developing the so-called Minas-Rio iron ore mine in Minas Gerais state. That plant is due to start producing in 2011.
Porto Sudeste will serve the iron-ore mines operated in Minas Gerais state by the Sudeste system of MMX Mineracao e Metalicos SA (MMXM3), also controlled by Batista.
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