VLI Secures BRL 1 Billion to Invest in the Centro-Atlântica Railway

VLI, a logistics solutions company operating railways, ports, and terminals, has raised BRL 1 billion through a debenture issuance to prepare for investments in the Centro-Atlântica Railway (FCA). These investments are part of the early concession renewal process with the Ministry of Transport. The funds will be directed toward modernizing the permanent way, building and upgrading rail yards, and improving rolling stock operating on the FCA.

“Since its creation in 2011, VLI has pursued its developmental purpose of transforming Brazil’s logistics sector, having directly invested more than BRL 14 billion in corrected values into the FCA. This amount exceeds 100% of the cash generated by the concession’s operations, with the additional investments funded through capital contributions,” said Fábio Marchiori, CEO of VLI.

In addition to these amounts, VLI has invested in constructing and upgrading integrated terminals that connect road and rail transport, enhancing logistics efficiency for grains, sugar, fertilizers, pulp, steelmaking inputs and products, minerals, and other diverse cargo.

Since its privatization in 1996, FCA has transferred approximately BRL 17.5 billion—adjusted by CDI/SELIC rates—to public coffers in concession fees and lease payments, contributing to developing other national logistics infrastructures.

“This debenture issuance prepares us to make new investments in FCA as soon as the concession renewal is finalized, expected in 2026. Further fundraising will only occur once this process, which has already gone through public hearings, is completed,” Marchiori added.

BTG Pactual, BNDES, and ABC Brasil coordinated the issuance, with BNDES subscribing to 50% of the amount in the long-term tranche. The total investment project, approved under the Ministry of Transport’s guidelines, is estimated at BRL 3.9 billion.

FCA Infrastructure Projects

The funds may be used to construct seven rail yards to improve FCA’s operational efficiency. These yards will be located in the Southeast Corridor, connecting Brasília to the ports of Baixada Santista and the East Corridor, linking the Triângulo Mineiro to the ports of Espírito Santo.

Approximately BRL 600 million may be allocated to maintaining tracks and sleepers across all FCA logistical corridors. The project also includes rolling stock maintenance, with the planned replacement of over 6,000 wagon wheelsets at an estimated cost of BRL 100 million.

FCA Concession Renewal

The proposal for renewing FCA’s concession, currently under public review, has the potential to unlock a new wave of investments. These include modernizing the FCA network, acquiring railcars and locomotives, and increasing freight volumes in sectors that significantly influence Brazil’s GDP. Additionally, dozens of urban conflict resolution projects are planned, bringing positive economic impacts and benefits to communities along the railway.

“After the public hearings held at the end of 2024, we revised our initial proposal for early renewal, carefully considering the demands of various key stakeholders. We are confident that our proposal has evolved significantly. Our strategy is to continue connecting FCA’s infrastructure to other VLI businesses, serving diverse geographies and productive segments, supporting growth in the primary and secondary sectors of the economy, and fostering the expansion of Brazil’s trade balance. Expanding our scope of operations is essential to sustain investments,” said Marchiori.

The CEO also emphasized that FCA, on its own, operates at a deficit, with investments made possible through synergies within VLI’s broader ecosystem. This ecosystem incorporates integrated terminals, port terminals, digital tools for road integration, technology sharing, R&D, operational costs, and administrative expenses shared with the company’s other businesses. “Our early renewal proposal aims to balance the business, ensuring a new cycle of investments worth tens of billions of reais, creating thousands of jobs, and ensuring the operation’s sustainability,” he concluded.

Source: VLI

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