STRATEGY AND GROWTH
Through railway concessions that connect traditional agricultural hubs to the country’s main ports, our growth strategy is built on competitive advantages and robust investment plans. The primary goal of our business is ambitious: double railway transport capacity over the next decade.
This plan aligns with the need to address national logistics bottlenecks. Making up just over 27% of the country’s transport matrix¹, the railway sector has the potential to enhance the competitiveness of Brazil’s industries and boost business opportunities. Increasing its share also means improving alternatives for the flow of agribusiness production, which accounts for 30% of Brazil’s Gross Domestic Product (GDP) and 27% of its jobs².
We are committed to ensuring the longevity of our business and fostering long-term relations with our clients. The fundamentals guiding our vision for the future include:
1 Fundação Dom Cabral 2024
2 Centro de Estudos Avançados em Economia Aplicada 2023
We have a robust investment pipeline to expand railway capacity in regions with the highest operational density, such as the Paulista Network and the Port of Santos.
We are also investing in a new level of systems and technology, alongside the constant pursuit of process optimization, aiming to eliminate bottlenecks and improve operational efficiency across the entire system.
The company’s main capital investment project is the expansion of the railway network, extending the system to the heart of the most significant agricultural production region in the country: Mato Grosso’s mid-north.
To maximize profitability and return on invested capital, we continuously seek new business opportunities to increase transported volumes and diversify our portfolio. Take for example the growth in transportation of industrial products, such as pulp and fuels, as well as operating fertilizers as return cargo in wagons transporting grains to the port, optimizing logistical efficiency and asset utilization.
INVESTMENT PLAN
We operate with a forward-looking vision that combines the growth of Brazil’s grains production and exports with an investment plan focused on significantly expanding capacity and increasing efficiency. We have invested BRL 13 billion in expansion capex projects, enabling us to achieve an annual growth rate of 9.8% during this period while simultaneously reducing operating costs, improving efficiency, and enhancing the organization’s service standards.
BUSINESS UNITS
The Company is structured into business units that best represent its railway networks and key market sectors. The business units are: (i) Northern Operations, comprising Malha Norte, Malha Paulista, Malha Central, and the Santos port operations; (ii) Southern Operations, comprising Malha Oeste and Malha Sul; and (iii) Container Operations, which include our subsidiary Brado Logística and other container operation results.
The Northern Operations encompasses the concessions held by our subsidiaries Rumo Malha Norte, Rumo Malha Paulista, and Rumo Malha Central. Additionally, it includes two key grain transshipment terminals in Rondonópolis (MT) and Rio Verde (GO), as well as stakes in port terminals with strategic partners, TERMAG (19.9%) and TGG (9.9%).
In the Northern Operations, the Company primarily transports agricultural commodities such as grains (soybeans, soybean meal, and corn), complemented by sugar, fertilizers, and industrial products like fuels and pulp. The Northern Operations railway network spans a significant portion of Brazil’s agricultural production areas in the states of Mato Grosso and São Paulo, making it the most significant operation, accounting for approximately 82% of the railway volume transported in 2023.
The Southern Operations encompass the concessions held by the subsidiaries Malha Oeste and Malha Sul, which operate railway networks in the states of Mato Grosso do Sul, Paraná, Santa Catarina, and Rio Grande do Sul, with access to the ports of Paranaguá, São Francisco do Sul, and Rio Grande.
In the Southern Operations, Rumo primarily transports agricultural commodities such as grains (soybeans, soybean meal, and corn) and sugar, complemented by industrial products like fuels and clinker.
The Container Operations comprises the activities of Brado Logística, in which Rumo holds a 77.7% stake. In the Container Operations, the Company transports agricultural and industrial products.
Last update: November 19, 2024