OREANDA-NEWS. Mitsui & Co., Ltd., has signed agreements with Odebrecht TransPort S.A., Brazilian time, to establish a joint venture company ("J/V") to promote concession and public-private partnership ("PPP") projects concerning urban passenger railway transportation. After completion of necessary procedures like obtaining permission from Brazilian Fair Trade Commission, Mitsui, through a newly established special purpose company, will acquire 40% of the J/V shares by the end of December, 2014 by subscribing new shares of J/V amounting to approximately BRL 500 million (JPY 22.5 billion).

Odebrecht TransPort, a subsidiary of a Brazilian major conglomerate Odebrecht S.A, operates various transportation infrastructure including passenger railways, highways, airport and ports in Brazil.

Assets of the J/V are composed of suburban railway in Rio de Janeiro, which is under operation, subway line No.6 in Sao Paulo and light rail transit in Rio de Janeiro and Goiania, which are under development or construction. In addition, the development of new PPP projects in major Brazilian cities as well as investment will be made through this J/V.

Mitsui has built up vast experience in export of rolling stock and railway system including signaling system as well as engineering, procurement, and construction (EPC) projects since the 1960s, and also has been operating freight car and locomotive leasing business in the United States, Europe, Brazil and Russia since the 1990's. Furthermore, in 2014, Mitsui participated in the general cargo rail transportation business in Brazil. As for concession/PPP business of passenger railways, Mitsui participated in Sao Paulo Subway line No. 4 PPP in 2007, which started commercial operation from 2011; however, this J/V is the first full-scale participation for Mitsui in this business field.

Through this J/V, Mitsui will contribute to the development of urban mobility infrastructure and a stable and safe passenger transportation system, which are urgent issues in Brazil and will enhance the value of the J/V by introducing technology and knowledge of Japanese passenger railway operators and manufacturers. In addition, Mitsui aims to participate in concession/PPP projects in other countries in the future by utilizing our past experience and the expertise to be accumulated in this J/V.