Valuation Guide

In order to help the understanding the main lines of our operating and financial results which serve as the basis for the Company’s financial modeling, we have created a general guideline as follows:


Railroad Transportation Capacity

Rail Structure Capacity measured in Pairs of Trains per Day (PoT/day). The capacity of a railroad stretch is determined by the time it takes for two trains going in opposite directions to move from one yard to the other.

To calculate the express capacity of the rail structure in pairs of trains per day (PoT/day) we use the following formula:

Capacity: [(number of minutes in 1 day) / ((transit time between yards * 2) + waiting time)] x Colson Coeff.
Number of minutes in one day: 24 hours x 60 minutes = 1,440 minutes
Waiting Time: waiting time of the train in the opposite direction
Colson Coefficient: represents the time during which there will be a train to use the railroad (75% signifies 25% idle time)

Standard Train

A standard train is a train to transport a certain product in each stretch, with similar characteristics in terms of number of locomotives and freight cars, gross and net load of train (TB and TU at the example below), and train length.  Train information can be found in the Annual Network Statement of each network.

Example: Malha Norte Standard Trains

Capacity by stretch in net tons (NT)

The rationale to calculate the annual capacity in NT of a specific stretch is the following:

Annual capacity per stretch in NT
Number of PoT/day in the stretch x Number of days of operation x Number of freight cars in the train x Average NT per freight car.

Annual network Statement (ANTT)

Complete information about trains, PoT/day capacity between yards, number of days in operation, distance between stretches and other information, for the Company’s four networks under concession is provided annually in the Network Statement, which is a mandatory document to comply with the requirements for breaking down the operating information to the National Agency of Ground Transportation (ANTT).

The Network Statement documents of the railroad networks maintained by the Company are (Portuguese only):

Malha Norte Malha Paulista Malha Oeste Malha Sul
Network Statement in pdf
Network Statement in excel
Network Statement in pdf
Network Statement in excel
Network Statement in pdf
Network Statement in excel
Network Statement in pdf
Network Statement in excel



Railroad Transportation Volume

The volume transported by the Company is expressed in Revenue Ton Kilometer (RTK), a metric that reflects the relation between revenue ton transported and distance travelled.

Find below the average distances of the main corridors:

  • Rondonópolis (MT) – Santos (SP): 1,630 km
  • Maringá (PR)/Londrina (PR) – Paranaguá (PR)/São Francisco (SC): 660 km
  • Cruz Alta (RS)/Rio Grande (RS): 850 km
  • Countryside of São Paulo (SP) – Santos (SP): 660 km
  • Maringá (PR)/Londrina (PR) – Paranaguá (PR)/São Francisco (SC): 660 km
  • Internal flows in Malha Norte: 1,100 km
  • Internal flows in Malha Paulista: 1,000 km
  • Internal flows in Malha Sul Paraná: 500 km
  • Internal flows in Malha Sul Rio Grande do Sul: 680 km

It’s important to mention that the volume served is a ratio between the corridor’s capacity and market conditions. The corridor capacity should be evaluated on how the combination of flows consumes the capacity available in that specific corridor. In market analysis, however, there is price elasticity to demand and projected growth for each of the transported products.

Contexto de mercado e sazonalidade

Destacamos a seguir o calendário das principais commodities agrícolas transportadas pela Rumo que respondem por cerca de 70 a 80% do volume transportado por nossas ferrovias.

Market Scenario and seasonality

The following table demonstrates the calendar of the main agricultural commodities transported by Rumo, which account for around 70-80% of the volume transported on our railroads.

Fonte: SLC Agrícola, Raízen, São Martinho, SECEX, Embrapa, BofA Merrill Lynch Global Research.


Historic information of transported volume (RTK) and loaded volumes (RT) can be found in the Fundamentals and Spreadsheets section, both consolidated and by segment (North Operations, South Operations and Containers).


Freight Dynamics in the brazilian market

Freight in Brazil is freely negotiated based on supply and demand. Some variables exercise additional influence on freight, such as distance traveled, operating costs, the possibility of back hauling, speed of loading and unloading, seasonality of demand for transportation, delivery time and some geographical aspects. Agricultural trading is particularly sensitive to changes in transportation costs since they account for a significant portion of the final price.

Given the dynamics described above, there is no official benchmark price in the Brazilian market for road or railroad freight. The most important road routes are monitored by economic research institutes to check the evolution of market prices. The data collected can serve as the basis for negotiating the freight for specific products and their respective destinations.

Dynamics of annual contracts

Historically, 70% of our volume is contracted by our clients before the start of the crop year, when agreements are signed establishing volumes and yields. These yields are automatically adjusted for inflation (IGP-M) and variations in diesel prices (National Petroleum Agency – ANP), at a ratio of 60-20% respectively.  The remaining 30% of our volume is historically contracted during the harvest season by our clients and yields are linked to the spot price.


Historical yields practiced by the Company (in R$/RTK x 1,000) can be found in the Fundamentals and Spreadsheets section, both consolidated and by segment (North Operations, South Operations and Containers).

Net Revenue

The Company’s revenue comprises transport revenue, port loading revenue and other revenues.

The contracts of railway transportation have Take or Pay clauses (protection mechanism, agreed with customers, providing for payment of a minimum volume transported, whether the transport have occurred) in which the Company is subject to two conditions, receive the percentage stipulated in the contract in case of non-placement of the volume by the customer or pay when the Company does not provide minimum capacity contracted for the customer. Such estimates are made based on contracts, and volumes made so far, and so a provision is recognized. For cases of receivables, the practice is recognized only when there is full assurance of the amount. During periods stipulated in the contract, the final figures are determined and additions or reversals in provisions are made.

Transport revenue

Transport revenue is calculated by multiplying average yield (R$/RTK x 1,000) by total transported volume in RTK.

Other revenues

Other revenues include revenue for the right of way of other railroads and revenue from sugar transportation using other railroads, as well as road transportation.

Costs of services provided

Fuel and Lubricants

Costs related to the consumption of diesel and lubricants by the Company’s locomotives. These costs are basically variable and are directly related to the volume transported. Two other factors also influence these costs: (i) variation in diesel and lubricant prices, which can be monitored by the National Petroleum Agency (ANP); and (ii) the energy efficiency of locomotives, where more modern models consume less diesel and lubricants per GTK.

Depreciation and amortization

Depreciation and amortization are calculated on a straight-line basis throughout the useful life of the assets, at rates that take into account their estimated useful life. For more details on the useful life of assets, see the Company’s financial statements at the Results Center.

Logistics Costs

These include costs related to contracting other railroad and road operators to transport specific cargo.

Maintenance (Parts and services)

Costs related to the maintenance (parts and services) of rolling stock (locomotives and freight cars), rail structure and operational technology, whose benefits are expected to last less than 12 months.

Personnel Costs

Include all costs with the company’s employees related to the operation. The main driver of these costs is the number of employees, whose salaries are annually adjusted through union agreements, which are generally based on inflation indices.

Leasing and concession

Quarterly costs, with the payment of leasing and concession installments for Malha Oeste, Malha Paulista and Malha Sul, which extend until the maturity of each network’s concession rights. The installments are restated by the IGP-DI index published by Fundação Getulio Vargas.

Amounts under litigation: Note that the Company has a legal dispute related to the economic and financial unbalance of leasing and concession agreements for Malha Oeste and Malha Paulista. As such there is no cash disbursement related to the leasing and concession installments for Malha Oeste and the leasing installments of Malha Paulista, but the Company maintains a record of the debt as required by law. For more details on litigation, see the notes to the Company’s financial statements at the Results Center.

Operating lease

Costs related to lease agreements, especially of freight cars and locomotives, whose payments are recognized as cost on a straight-line basis corresponding to the term of their respective agreements. Since the Company does not hold the risks and benefits of ownership of the assets, such assets are not capitalized and cannot be acquired at their residual value at the end of the agreements, and hence are characterized as operating costs.

Third parties services

These are related to the engagement of outsourced professionals to perform some of the operational activities, and also include the amounts paid for various kinds of service agreements with the Company. These costs may vary depending on the volume of professionals or services contracted, as well as annual restatements of these agreements for inflation.

Other operational costs

These mainly include costs with indemnities, right of way, utilities, travel and other costs related to operations.

Selling, General and Administrative expenses


Include expenses with the sales efforts by the sales department and allowance for doubtful accounts.

General and administrative

Represents the corporate structure expenses which include the HR, Finance, Legal, IT, Supply and Institutional Relations functions, as well as expenses related to the activities performed by the shared services center.


Rumo believes that EBITDA reflects the Company’s operating performance and helps understand its capacity to meet obligations and obtain resources for its capital expenses and working capital needs. The Company discloses EBITDA because this performance metric is frequently used by capital market analysts, investors, creditors and other stakeholders to evaluate companies in the sector.

EBITDA* stands for Earnings Before Interest, Taxes, Depreciation and Amortization.

* EBITDA is not a measure used in accounting practices and does not represent cash flow for the periods presented and hence must not be considered as an alternative to cash flow as a liquidity indicator.

Financial Result

Gross Debt Charges

Gross debt charges are related to changes in the outstanding balance and interest rates linked to the Company’s loans and financing. For more details on the Company’s Gross Debt, see the Indebtedness section and the notes to the Company’s financial statements at the Results Center.

Gains (losses) with derivates

Gains (losses) with derivative agreements used to mitigate the company’s risk of exposure to exchange and interest rates.

Exchange Variation

Gains (losses) resulting from the impact of exchange variation on foreign currency debt. All of the Company’s debt is hedged against exchange variation through hedge instruments.

Income from financial investiments

This consists of income earned from financial investments, usually in CDI (Interbank Deposit Certificates), that we make using cash balances.

Monetary variation on leasing and concession agreements

Monetary variation on leasing and concession agreements reflects the restatement, by the SELIC rate, of the unpaid concession amounts of the Malha Oeste and Malha Paulista, which are currently under litigation.

Lease interest and other monetary variation

Lease interest (Financial)

Expenses related to lease agreements, especially of freight cars and locomotives classified as financial lease. Since the Company holds the risks and benefits of ownership of the assets, these are capitalized and can be acquired at their residual value at the end of the agreements, then characterized as financial expense.

Leasing agreements have different terms, and the final maturity is in June 2022. The amounts are adjusted annually for inflation (such as IGPM or IPCA) or may attract interest calculated based on the TJLP or CDI rates. For more details on leases, see the notes to the Company’s financial statements at the Results Center.

Income and social contribution taxes

Income and social contribution taxes are calculated as a percentage of net income before taxes, which are currently 25.0% and 9.0%, respectively. Brazilian law allows tax losses to be accounted for in the subsequent fiscal year, so as to be offset against future taxes.

Though income tax loss does not expire, the annual offset is limited to 30.0% of the adjusted taxable income for the year.

SUDAM Benefit

ALL Malha Norte was granted by the Amazon Development Office (SUDAM) the right to reduce corporate income tax (IRPJ) and additional non-refundable taxes on exploration income as it is located in the Legal Amazon area and since the transport sector is considered a priority venture for regional development.

The tax benefit includes a 75% reduction in IRPJ and additional non-refundable taxes on exploration income for a period of 10 years from the start of the term in 2008 to its expiry in 2017. On May 30, 2014, ALL Malha Norte obtained an extension of the term to 2023, in return for a project to modernize the venture located in the Legal Amazon area.



Recurring investments are related to maintenance of rolling stock, rail structure and operational technology, whose benefits are expected to last more than 12 months.


Investments in expansion represent initiatives and projects designed to improve operating efficiency, reduce costs, expand capacity and increase the volume transported in our operations. For more details, please see the presentation on our investment plan.

Last update: October 18, 2022

Last updated on October 18, 2022