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Viena Steel Mill, One of the Largest Pig Iron Producers in Brazil, Joins VLI to Enable the Transportation of Material for Export
VLI – a company focused on logistical solutions integrating railways, ports, and terminals – has signed a new contract with Viena Steel Mill to promote the movement of 720,000 tons of pig iron destined for the international market between 2022 and 2023.
The route starts from a warehouse located in Açailândia (MA) and is completely made through the railway network of Estrada de Ferro Carajás (EFC). The pig iron will then be shipped to the Port Terminal of São Luís (TPSL), where the export process will take place.
VLI Commercial Manager Supports Partnership with Viena Steel Mill and Highlights the Importance of Modal Integration in Transportation
According to VLI’s commercial manager, André do Carmo, VLI and Viena Steel Mill have a long-standing cooperation, and the extension of this agreement demonstrates the effectiveness enabled by integrating modalities to connect national production with the international market.
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Viena Steel Mill is one of the most important pig iron producers in Brazil, with a production capacity of around 600,000 tons per year in its operations. Furthermore, Viena Steel Mill stands out in the metallurgy and mining sector, ranking among the top 10 in the national ranking.
The pig iron produced in Maranhão and Minas Gerais holds significant relevance in the international market, being mainly exported to the United States, Asia, and Europe. An immediate product of iron ore reduction, pig iron is widely used for steel manufacturing, and the national volume of exports of such material has been considerably increasing. In 2021 alone, Brazil exported around three million tons of pig iron, with China and North America being the main destinations.
The railway modal, in addition to being recommended by experts as the most suitable for transporting large volumes, is also a cheaper and safer means compared to other modes. For example, a bulk freight car can transport, on average, over 70 tons. A bitrem truck, on the other hand, carries only about 36 tons, although it has the advantage of great flexibility, as it can reach places that a train cannot. Therefore, in the Brazilian context, the practice of interlinking road and rail modalities allows for faster cargo movement.
Aiming to Expand the Railway Modal, the Company Recently Signed an Agreement for the Construction of New Railways. Check It Out:
Construction of New Railways: Rumo and VLI, Logistics Companies, Signed a Contract to Build a Section Between Uberlândia and Chaveslândia
The logistics companies Rumo and VLI obtained federal authorization for the development of the railway construction project between the city of Uberlândia and Chaveslândia, a district of Santa Vitória. The announcement of the release by the Federal Government for the companies to explore the area was made in September of last year by G1. The expectation is that R$ 2.77 billion will be invested in the 276.5 km stretch of the section.
Private logistics companies can invest in the construction or requalification of railways thanks to the framework defined by the new Legal Framework for Railways, which establishes greater freedom for enterprises and fewer state impositions.
According to the Ministry of Infrastructure, both logistics companies can develop the sector, and to do so, they need to obtain the necessary licenses from the responsible agencies and carry out engineering project development. Additionally, they must secure financing to implement the business and consider the risks involved, among other agreements that the companies must undertake. To learn more, click here to read this article in full.
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