MRS 2005 capex forecast totals US$155mn

Brazilian rail operator MRS Logística plans to invest 400mn reais (US$155mn) this year, up 41.3% from 2004, MRS said in its 2004 results release. The investment will go to purchasing engines and cars, revamping cars, track works, developing terminals to serve multimodal operations, and improving reliability and safety. MRS posted a 222mn-real net profit in 2004, down 36.8% from the previous year, while gross revenue grew 20.4% to 1.62bn reais and operating profit was up 0.66% to 335mn reais. Increased operational and financial outlays offset the revenue increase. The operator moved 98.1Mt of cargo last year, up 13.7% from 2003, and aims to handle 150Mt of cargo in 2008. MRS operates the 1,674km southeast network known as Malha Sudeste through the states of Minas Gerais, Rio de Janeiro and São Paulo. The operators' 30-year concession began in 1996. MRS's principal shareholders are MBR and CSN, each of which hold a 32% stake in the operator, according to information from its website The concessionaire's principal clients are MBR, responsible for 33% of revenue, followed by Cosipa (16%), CVRD (13%) and CSN (10%), while iron ore cargo is responsible for 71% of revenue.