Railcar production jumps 590% on miner's demand

Brazil's train makers produced 1,611 cargo wagons from January to October and is expected to end 2003 at 2,030 wagons, according to figure out Friday from the Road and Rail Material and Equipment Syndicate (Simefre). The figure expected for 2003 is a 590% increase on the 294 wagons produced in 2002. In 2004 the industry expects to produce 6,355 wagons, in 2005 3,519 wagons and in 2006 4,164 wagons. The sector's current growth is a direct result of orders from mining giant Companhia Vale do Rio Doce (CVRD) and from increased demand for mineral and grain transport. Passenger wagon production is expected to be far more timid, however at only 50 in 2003 from 218 in 2002. This reduction is due to difficulties in public and private investments in urban transport. by Renata Stuani