A’u Opera’‘es Portu’rias S/A, a LLX Log’stica S.A. (“LLX”) subsidiary, and Ferrovia Centro Atl’ntica S.A (“FCA”), signed a commercial agreement pursuant to which both parties have agreed to, among other things: enter into a long term transportation contract, which will regulate the rendering by FCA of railway transportation services to LLX, its customers and/or business associates, for cargoes imported from or exported through Port A’u, Brazil, and the assessment of the investment required for the recovery of the tracks and the construction of a new railway spur and for the increase of rolling stock, which may be carried out by one or both parties to the agreement, with the purpose of ensuring FCA’s transport of LLX A’u's and its customers cargoes. The upgrade of the FCA railway will contemplate the investment in the existing railway branch adjacent to Belo Horizonte, and the construction of a new spur between Campos dos Goytacazes (RJ) and the Port A’u.
This agreement contributes to the creation of a new import and export corridor, based on the integration of the FCA railway network and Port A’u. The commitment of the parties to transport annual volumes should reach 29 million tons of products annually by the end of a five-year period beginning at the Railway-Port integration, and includes the handling of different products, such as minerals, coal, steel products, general cargo and liquid and solid bulks.
The investment phase will be preceded by engineering and feasibility studies, customary in the assessment of this kind of project, and which conclusion is expected in the beginning of 2009. The implementation of the agreement is subject to the technical and financial feasibility of the new import and export corridor and the financial feasibility of the investments.
LLX emphasizes, through this agreement, its interest and commitment to develop this new import and export corridor, addressing Port A’u's customers’ railway demands.