Ramo seeks partner to flow out more sugar
Valor Econômico - 04/28/2009
Rumo, the logistics branch of the Cosan group, has an ambitious plan of becoming one of the largest companies of Brazil in the flowing of sugar. The group is creating a company with integrated infrastructure, which will unite all modals and whose "benchmark" is the operations of the iron mining companies of the country that join railroad and ports and large scale transportation. With an integrated service, it is believed the company will be able to operate much more efficiently.
Created a year and a half ago, Rumo Logística S.A, is currently 100% controlled by the Cosan group, but its holder is negotiating the entrance, in its capital, of investors focused on infrastructure, says Marcos Lutz, Commercial and Logistics Vice-President of Cosan and CEO of Rumo. Credit Suisse bank is advising Rumo in this process. The company may go public in the future. "We are creating a company to achieve earnings of nearly US$ 500 million", affirms Lutz. In 2013, the logistics operator plans on carrying 9 million tons of sugar per harvest. The country exports nearly 20 million tons. The purpose is to reach 15 million tons as of 2015, in a more advanced stage of the project. During the off season, Rumo should also transport grains, mainly soybean, in order to take full advantage of its installed capacity in terminals of Santos. Currently, Rumo develops a partnership with railroad concessionaire ALL (América Latina Logística), through which both companies will build a railroad platform of transport intended for sugar and byproducts - from the interior of São Paulo to the port of Santos. The project, with its whole financial investment funded by Rumo, is budgeted at R$ 1.2 billion (US$ 545.5 million). ALL will be responsible for the management and operation of the platform. The agreement entered into between the companies in March is good for 180 days and its implementation depends on Rumo's being able to raise the funds in the market in order to assure the execution of the undertaking.