Chinese giant negotiates partnership with CSN on the design of the Transnordestina railway

BRASILIA and SÃO PAULO-CSN, Benjamin Steinbruch, initiated conversations with the Chinese China Communications Construction Company (CCCC), China''s largest state-owned infrastructure, to sell a part or even all of your participation in the Transnordestina railway, found the newspaper O Estado de s. Paulo. The talks between the two companies are still at the beginning, but reignited a discussion in Brasilia, which seeks an urgent alternative to continue to work, even without the participation of Steinbruch, say sources familiar with the matter.
Despite the efforts of the Government in the flag State Valec society with CSN''s going to move on, the fact is that the possibilities for the company to follow in business are minimal Steinbruch. The relationship between the partners already accumulated years of wear, but the shovel of lime was given with the decision of the Tribunal de Contas da União (TCU), which last month ordered the shutdown of financial allocation to the project, until it resolves a number of serious irregularities that hang over the work.
The Transnordestina railroad designed to connect-port of Pecém, Ceará, to the port of Suape in Pernambuco, Piauí-is budgeted at R$ 11.2 billion, of which $6 billion have already been invested, with public money.
On Wednesday afternoon, 15, a delegation led by Transport Minister Maurice Quintella, went to the Office of the Minister of TCU, Walton Alencar Rodrigues, the Court''s rapporteur, to discuss a way out that unlock the works. The meeting was the presence of representatives of the Governments of Pernambuco, Ceará and Piauí, in addition to the Acting President of Valec, Mario Modolfo.
The newspaper O Estado de s. Paulo found that the Government is willing to play the work alone. The problem is to enable it. A corporate spat hampers the plans because the Valec is partner at CSN in Transnordestina Logística s.a. (TLSA), i.e. does not act as public company Valec, but as part of a concessionaire that is target of questioning of TCU.
Chinese eye. The CCCC was in Brasilia to discuss interest in Transnordestina railway and other infrastructure projects. The company holds conversations with Steinbruch a few months ago. The Chinese offensive, however, not carried away both the Government. The CCCC brought no concrete signs that should enter into society. In November, the Asian giant bought 80% of the Project and is in advanced negotiations to play the intermodal port project in WTorre''s Maranhão. In a recent conversation with the newspaper O Estado de s. Paulo, WTorre wouldn''t comment.
With net debt of R$ 23.4 billion in the third quarter, the NSC decided to put a few months ago, non-strategic assets for sale. So far, however, only broke up smaller assets.
Sought, the CSN did not comment. The CCCC did not return requests for interviews.