MercoPress. South Atlantic News Agency

Latinamerica first bullet train in Brazil.

Brazil will have the first bullet train in Latinamerica. The super speed train to be built by Italian corporations will cover a distance of 205 kilometres at a speed in the range of 250 kilometres per hour.

On Thursday Italian government representatives signed in Brasilia an agreement with the two Brazilian regional governments involved in the project, Federal District Brasilia and Goaias state. Brasilia's Secretary for Special projects, Jose Geraldo Maciel, said assessment studies that need to be conducted prior to building the railroad should conclude in six months. The first high-speed train will run between the cities of Brasilia and Goiania, capital of Goias, a distance of 205 kilometers which will be covered in more than 50 minutes, with speed reaching 250 kilometers per hour. Goiania is the largest city close to Brasilia, the Brazilian capital, which was built more than four decades ago, 1,140 kilometers from Rio de Janeiro (until then the country's capital) and 1,027 kilometers from the industrial hub of Sao Paulo. According to preliminary studies, each bullet train railway kilometre of the 205, will have cost in the range of 8 and 10 million US dollars.

Severe drought contracts Brazilian soybean crop

Brazil's grains harvest is expected to drop this year in several southern states where the worst drought in decades has ruined soybean, corn and rice crops, according to a release from Agroconsult, commissioned by large food corporations. The report estimates that the 2004-2005 Brazilian harvest will total 116.6 million tons, which is 3,2% below the original government's estimate of 120,5 million tons. The report was drafted following crop inspections in the states of Goias, Mato Grosso do Sul, Parana, Santa Caterina and Rio Grande do Sul. The situation is particularly critical in Rio Grande do Sul, which is recording the worst drought in 62 years forcing the loss of 70% of the soybean crop, with production per acre so low it does not even cover costs. In the other 30%, grains are so small and protein contents so low that not even local mills are interested in purchasing it, reports Agroconcult. Overall the Brazilian soybean crop has been compensated by production increases in central states such as Goias, Matto Grosso, Matto Grosso do Sul where the impact of the drought has not been so severe. Agroconsult's first crop estimate was 58,4 million tons of soybean, however the volume has now dropped to 51,8 million tons. Regarding corn Brazil's crop is expected to reach 35,7/37,6 million tons which means the country will have to import an estimated 1,3 million tons to supply domestic demand. The previous crop, 2003/04 was 42,2 million tons. The report under the name of "Crop 2005 Rally" was an "in situ" assessment in several states financed by the main Brazilian food corporations.

Argentina preparing for winter energy shortages.

The Argentine Congress unanimously approved Thursday a bill reducing diesel fuel import duties for four months to ensure a normal supply in the coming winter months, when demand increases and to help contain domestic prices. Last year Argentina faced a shortage of natural gas which forced many local industries to use liquid fuels. The bill is targeted to cheapen fuel costs for electricity generating plants and guarantee farmers an abundant supply of diesel for harvest time. Argentina is expecting a record crop of grains this season. The import duty reduction is equivalent to 10 US cents per litre of diesel fuel. Argentina's strong recovery has generated bottle neck shortages in the energy sector which are threatening an upsurge of inflation. Last week Shell Oil decided to raise fuel prices 4,5% and President Nestor Kirchner called on the people to boycott the British-Dutch company. Reducing diesel import taxes is also directed to keep fuel prices down. A year ago, Argentina alleging insufficient supply cut natural gas exports to the region causing a serious diplomatic rift with Chile. Foreign companies argue that the compulsory low prices of Argentine oil and natural gas have impeded them from making the necessary investments to increase overall production. Last year Argentina not only reduced natural gas exports to Chile, but urgently requested electricity from Brazil and natural gas from Bolivia, plus exchanging food Venezuelan for diesel and fuel oil.