Glossary

Glossary

Ballast: Part of the railway superstructure, which evenly distributes the railroad’s efforts platform transmitted through the bunk cars, preventing the displacement thereof, providing sufficient elasticity to the track, reducing impacts and ensuring efficient drainage and aeration.

Block Rates: Protection mechanism, agreed with customers, providing for payment of a minimum volume transported, whether the transport have occurred, and a rate value’s reduction in cases where the transported volume exceeds the contracted volume.

Bunk Car: Wooden, concrete, plastic or iron part, where the rails are supported and secured and that convey the ballast part of the efforts and vibrations produced by trains.

CAPEX: Capital Expenditures. Expenses on assets of a company.

Car Dumper: Equipment used for discharge of iron ore wagons. They are large equipment and tubular shaped but may also pack from one to three loaded wagons. 

CBTC: Communication Based Train Control. It is a control and monitoring system of the movement of trains through dedicated network of interconnected communication with the signaling in the field.

Concession: Authorization of the right to exploit a particular service, granted by the Government to the citizen or business. MRS Logística’s granting was acquired in November, 1996 after the privatization of the Federal Railway Network S/A (RFFSA). MRS celebrated with the Federal Government, the Concession Agreement, for which iy was awarded the MRS the right to exploit the railway loads the Southeast network for a period of 30 years, renewable for another 30 years.

Covenant: It is a legal restriction on the issuance of bonds or financing agreements.

Double Stack: Wagons carrying two 40 feet containers stacked.

EBITDA: Earnings Before Interests Taxes, Depreciation and Amortization.

EBITDA Margin: EBITDA divided by net revenues.

Flow: Movement of trains in the rail network.

Gauge: It is the nomination used in railways to describe the distance between the trails, or between wheels on the axles of trains.

General Cargo: Cargo transported by MRS covering steel products, agricultural products (sugar, soybeans, soybean meal and corn) and cement, bauxite, container, among others.

Gross Debt: It is the sum of loans, bank loans and debentures issued still valid.

Heavy Haul: Load with more significant amount (greater amount) transported by the company covering iron ore, coal and coke.

Lease: Lease is a type of contract in which one party grants the other the enjoyment of a good, in return for retribution.

Mesh: Set of railway networks that make up a region.

Net Debt: It is the gross debt minus the company’s cash, i.e. the sum of instruments that can be considered as paper money.

Net Debt/EBITDA: This index is a measure of financial leverage of the company. It is an approximation of the number of years of required cash flow to pay all company debts.

OPEX: Operational Expenditures. Operating expenses of a company.

Patio: Terrace area where a set of pathways is prepared for the formation of trains, maneuvers and parking of railway vehicles.

RFFSA: Network Rail Federal Corporation. Extinct Brazilian state-owned railway.

Take Or Pay: Protection mechanism, agreed with customers, providing for payment of a minimum volume transported, whether the transport have occurred.

Terminal: Set of equipment and buildings situated at the ends of the lines of a railroad (beginning or end of the line) or even at intermediate points, occupied for the reunification of cargo and also the formation and dispatch of trains.

TKB: Ton per gross kilometer is equivalent to the weight of the load plus the total weight of trains, including locomotives and wagons, multiplied by the transported distance.

TKU: Ton per useful kilometer is equivalent only to the load weight multiplied by the transported distance.

Track: Covers the railroad tracks, buildings, telegraph lines, etc.

Transit Time: Transportation time.

Trigger: protection mechanism, agreed with customers, which provides for the transfer of the increase in fuel.

TU: Useful ton, only the weight of the load.

Click here and ask IR if you have questions regarding any term not included in the glossary.