German-Brazilian JV to compete in Brazil railway sector

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Friday, October 24, 2014

German railway company Deutsche Bahn and Brazilian engineering firm Progen are planning to jointly participate in Brazil's railway sector.

The two signed a technical cooperation agreement in order to establish joint ventures for investing in railway engineering and train operations, local paper Valor Econômico reported.

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Deutsche Bahn and Progen are currently in talks with companies in the hope of forming consortiums, Progen president Eduardo Barella said, without disclosing any company names. "We're looking at passenger trains and freight railways that are not part of any government concession," Barella was quoted as saying in the report.

Brazil's new railway concession model, known as open-access, is expected to opens up more logistics opportunities for us, added Deutsche Bahn board member Dieter Michell-Auli.

PROGEN-RDZ PARTNERSHIP

Progen also formed an alliance in July with Russian Railways International RZD to jointly participate in Brazil's upcoming railroad concessions. The consortium will submit expressions of interest for all railroad tenders, including six that are currently underway.