OREANDA-NEWS. September 24, 2012.  Mitsui & Co. saw an opportunity. In 2004, we launched a new business, transforming soybean logistics　by leasing freight cars to grain traders and railway companies.
 We realised that switching from truck to rail would not only deliver significant time and cost savings, it would also translate to reduced CO2 emissions— and a better environment for Brazil.
 In those days, Brazil was not yet a magnet for global investors. But Mitsui’ s relationship with the country goes back a long way. We have always believed in its potential. Our confidence was well placed: today we lease around 30 percent of all the grain freight cars in Brazil.
 Brazil is a big country and it taught us a big lesson: that innovative thinking can transform any business.
 Unconstrained by old philosophies and unafraid of risk, Mitsui is committed to creating value through business innovation.

Our Growing Railroad Rolling Stock Leasing Business

There is a growing global need for railroads, which are vital to economic activity and future economic development, as a mode of transport that is friendly to the global environment.
 Demand for transportation expands in step with economic growth, and Mitsui is helping to meet such demand through its involvement in the railroad rolling stock leasing business. This activity began with an initiative in the United States in 1996. In 2004, we expanded into Europe and Brazil. The business continues to grow, and today we have more than 200 locomotives and 13,000 freight wagons. Railroad rolling stock owned by Mitsui is making a vital contribution in each region by carrying various products ranging from soybeans and coal to motor vehicles.

One of the most important markets for our railroad rolling stock leasing business is Brazil. In contrast with the U.S. and European markets, investment in the freight rail industry in Brazil has been inadequate in the past. However, Brazil is one of the world’s biggest producers of agricultural products, such as soybeans, and mineral resources, and there is a growing demand in export of those products for railroad transportation capacity. In 2004, Mitsui moved into the Brazilian market, then a new frontier for the railroad rolling stock leasing business, with the establishment of MRC ( Mitsui Rail Capital Participacoes). This transplant was part of a business strategy based on the use of experience gained in the U.S. market to meet the challenge of expansion into the markets of emerging countries. In Brazil we began by building a freight wagon rental business. Today we also rent locomotives and soybean storage terminals.

Mitsui also continues to support the growth of Line 4 of the Sao Paulo Metro system, which was opened in May 2010. This line runs through Sao Paulo City, Sao Paulo State, which is the heart of the Brazilian economy and the main focus of Brazil’s rapid progress toward urbanization and industrialization. Linking 11 stations over a distance of 12.8 km in Sao Paulo City, Line 4 is being developed as PPP (public private partnership) with the state government of São Paulo and has attracted intense interest as the first railroad PPP project in Brazil. Under this long-term project, Mitsui will operate and maintain the line for 30 years.

Mitsui will continue to use its integrated strengths to contribute to development and prosperity in Brazil.