The Brazilian government has been skeptical over Companhia Siderurgica Nacional’s (CSN) investments at its Transnordestina railway, a media report said on Friday.
According to the media report, the Brazilian government doesn’t believe CSN could inject more money into the delayed project in order to complete the next phases of the initiative, which was expected to be completed in 2010.
In Mid-September, CSN’s CEO, Benjamin Steinbruch said the company would make investments at its unfinished Transnordestina railway a priority.
According to a government source, the Brazilian steelmaker should invest BRL 1.5 billion to finish part of the railway that goes until the Pecem area in the state of Ceara. Another BRL 1.5 billion should be invested by the Brazilian government.
“We don’t see any strong demonstration by the company that there should be any investment anytime soon,” the source said. If investors, namely CSN, do not show any interest in putting some cash in the project, the Brazilian government is likely to not pay for the investment alone.
Brazil could take the concession of the railway to CSN back, but it could “legalize” the project, delaying it even more. The railway runs for nearly 1,728 km (1,073 miles).