FIOL Rail Update
FIOL Rail Update

FIOL Rail Update

Cabral’s tenement portfolio sits within close proximity to the FIOL Rail Line (“FIOL”), also commonly known as the East West Rail Line, in the State of Bahia, Brazil. FIOL is being fully funded by the State and Federal Governments of Brazil. Phase One of FIOL is currently under construction with a current commissioning date of 2016. FIOL will link directly with the proposed new deep water port of Porto Sul to be located north of the existing port of Ilhéus. 

FIOL will be a heavy haulage rail line dedicated to bulk commodities, such as iron ore and, to a lesser extent, agricultural products such as grains and soy beans. Cabral is fortunate in that its iron ore tenement portfolio is located immediately on the FIOL rail corridor.

Phase One of the FIOL rail line will be constructed 536 kilometres inland from Porto Sul and will extend due west to within close proximity to the township of Caetité.  Cabral’s iron ore tenement portfolio is located within Phase One and before Caetité.  Phase One construction is divided into 4 zones which are currently under construction via 4 separate construction consortiums who are building each zone in parallel as follows: Zone 1 for 125 kms; Zone 2 for 118 kms; Zone 3 for 115 kms; and Zone 4 for 178 kms.

VALEC Engenharia, Construções e Ferrovias S.A. (“VALEC”), a Federal Government owned Rail Ministry company, is coordinating the construction process and managing the construction consortiums for each zone.

The annual capacity of FIOL will initially be approximately 52 million tonnes per annum but with significant expansion capabilities. Phase One will have passing loops or sidings of approximately 2,300 metres every 13 kilometres or so. With debottlenecking and efficient operatorship FIOL is likely to achieve significantly higher volumes over and above 52 million tonnes per annum in the medium to long term.

In March 2012, Cabral signed a Protocol of Intentions with the State of Bahia which contemplates rail and port allocations of up to 15.0mtpa of Cabral’s future iron ore products. In the images below you can see pictorial progress on each of the 4 zones which comprise Phase One of FIOL: