Beto
Abreu
Connecting Brazilian agribusiness to rising global demand
Brazil already accounts for 40% of global grain trade
RELIABLE INFRASTRUCTURE TO
INCREASE COMPETITIVENSS
POPULATION GROWTH AND | HIGHER GRAIN PRODUCTION TO | |
BASE SCENARIO | URBANIZATION TO INCREASE | GUARANTEE GLOBAL FOOD SUPPLY |
PROTEIN CONSUMPTION |
Corn | Soybean | INVESTMENTS | |
GRAINS GLOBAL DEMAND | |||
More efficiency and | |||
316 mln ton | |||
productivity on the field | |||
BRAZILIAN EXPORTS | |||
117 mln ton | |||
Major exporters | Major importers | ||
INCREASE FOOD | New agriculture | ||
EXPENDITURE | BETTER PLANNING | ||
frontiers |
Increasing footprint
Rumo to reach 80% of grains exporting areas
26% of brazil grain exports
AC | TO | 50.3 | |
(38%) | |||
RO | Porto Nacional | ||
MT | BA | ||
Rondonópolis | GO | Anápolis | |
Alto Araguaia | |||
Alto Taquari | |||
Chapadão do Sul | MG | ES | |
MS | Fernandópolis | ||
Votuporanga | Barretos | ||
Op. Norte | SP | Pradópolis | |
Araraquara | RJ | ||
Op. Sul | Jaú | Itirapina | |
Sumaré | |||
PR | PORTO DE SANTOS | ||
PORTO DE PARANAGUÁ | |||
SC | PORTO DE SÃO FRANCISCO | ||
RS | MT | ||
1St |
PORTO DE RIO GRANDE
35% of brazil grain exports
states in 2019 (mln ton)
AC | TO | 1 | ||||||||
MT | Porto Nacional | |||||||||
RO | ||||||||||
Lucas do Rio Verde | BA | |||||||||
2 Nova Mutum | ||||||||||
Rondonópolis | GO | |||||||||
17.8 | 14.6 | MS | MG | ES | ||||||
(13%) | 11.9 | |||||||||
(11%) | 6.4 | Maracajú | 3 | SP | ||||||
(9%) | 5.8 | RJ | ||||||||
(5%) | (4%) | Guaíra | PR | PORTO DE SANTOS | ||||||
Cascavel | ||||||||||
PORTO DE PARANAGUÁ | ||||||||||
FERROESTE | ||||||||||
PORTO DE SÃO FRANCISCO | ||||||||||
SC | ||||||||||
PR | RS | GO | MS | SP | RS | |||||
2nd | 3rd | 4th | 5th | 6th |
PORTO DE RIO GRANDE
States that are or will be served by Rumo
Strategic Framework
Our Roadmap
Growth | Efficiency | Customers | People |
Key success factors: SAFETY | INNOVATION | SUSTAINABILITY
North Operation
Accretive network extension
MATO GROSSO EXPORTS
+37% 68.8
43.450.3
2018 | 2019 | 2028 |
Source: MAPA | Ministry of Agriculture, Livestock and Food Supply of Brazil |
- Environmental licenses requested
- Improving commercial strategy with multiple terminals
- High returns on additional volume
RELIABLE LOGISTICS FOR MT
Lucas do Rio Verde | |
MT | Nova Mutum A |
Rondonópolis B
A Future Nova Mutum terminal | B Rondonópolis expansion |
South Operation
New opportunities grounded on Ferroeste deal
West PR grain production (mln ton)
MS grain exports (mln ton)
7.7 | 7.9 | 6.1 | 6.3 |
2018 | 2019 | 2018 | 2019 |
Source: Agroconsult | Source: Agroconsult |
Signed agreement with Ferroeste:
Rumo network Ferroeste network Ferroeste extension
- State-ownedrailway serving west Paraná
- Access with new locomotives and passthrough fee
- Possible extension to MS southern area
Central Operation
Accessing new markets
- Cargo diversification
- Operational synergies
- Higher ROI on lower cost of capital
Investments already started:
Addressable market
Grains export (mln ton)
Goiás | 25.1 | |
Tocantins | ||
13.2 | 15.2 | 20.4 |
10.5 | 12.2 | |
2.7 | 3.0 | 4.7 |
2018 | 2028 Base scenario | 2028 Optimistic scenario |
Source: MAPA - Ministry of Agriculture, Livestock and Food Supply of Brazil
Rio Verde grain terminal:
Rio Verde - GO
Container Operation
Growing fast with profitability
RTK VolumeEBITDA Margin (%)2,305 | 2,766 |
10.0% | |
5.2% |
2018 | 2019 | 2018 | 2019 |
Business Strategy:
- Improved profitability
- More volume: double stack railcars
- Huge market opportunity
- Assortment of cargo/customers
Higher capacity and efficiency
17.6%
4Q19
Diversified customers and cargoes
Cargo diversification
Market opportunities well beyond grains
Fuel
5.8 | Sugar | |
4.3 | ||
3.1 | Pulp | |
Rumo 2019 | ||
Volume | 2.8 Iron ore | |
(mln ton) | ||
Grains 34.9 | 2.8 | Fertilizers |
2.8 | ||
Sugar 2019 exports
Brazil17.8
Rumo Area | 14.0 | |
Served by Rumo 4.3 | 9.7 | Opportunity |
Pulp 2019 exports
Brazil15.3
Rumo Area | 8.4 |
Served by Rumo 3.1 | 5.3 Opportunity |
Fertilizers 2019 imports
Brazil | 31.1 |
1.2
Containers
Rumo Area | 19.8 |
Others
Served by Rumo 2.8 | 17.0 | Opportunity |
Operational efficiency
More efficient trains: higher capacity with lower fuel consumption
120 train in North Operation
Double stack railcars | Trip optimizer roll-out |
+5% reduction
fuel consumption
Fuel consumption
000)
4.8 -18%3.9
20162019
Operational efficiency:
- Longer train in North Operation
- Double stack railcars for containers
- Trip optimizer: more fuel efficiency
Operational Efficiency
Every hour matters:
1 hour = BRL 23 MM/year
-
Transit time
Rondonópolis Santos = 90h - Train stopped half of the time:
- Crossovers
- Dwell time
- Anomaly
AI + Machine learning
Network | ||
AI | Scheduling | Network optimization |
Yard |
Yards optimization
Trip optimizer
Customers
As logistics expand RUMO should become more commercial oriented
FARMERS | TRADINGS | COOPERATIVES | INDUSTRIES |
Broader customer perspective
Making difference in the value chain
CAPACITY | NEW GEOGRAPHYS | ASSORTMENT | PARTNERSHIP | MARKET INTELIGENCE | INNOVATION |
People
Developing and attracting people
to support our | DIFERENT SKILLS | DIVERSITY | TALENT ATRACTION | DEVELOPMENT |
growth |
Transformational project for logistics in Brazil
High growth / Different geographies / New competences
LEADERSHIP | BRANDING | CULTURE | PERFORMANCE |
ESG
24% reduction of CO2 emission since 2016
CDP participant
Compliance with GRI methodology
Participant company
2020 commitments
Safety - LTIF
3.20 | Consistent performance |
over years |
- Better than average of Class I Railways in US [0,20]
2.07 2.06
0.82
0.39
0.25 0.13
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Lost Time Injury Frequency measured by the number of accidents with leave by the total hours worked with risk exposure (in millions hours)
2023 Guidance
Long term commitments
Volume | CAPEX | EBITDA | ||||||
(bln RTK) | (BRL bln) | (BRL bln) | ||||||
88.0 - 94.0 | 13.0 - 15.0 | 6.2 6.9 | ||||||
CAGR | CAGR | |||||||
60.1 | +10% | 3.8 | +15% | |||||
2019 | 2023 | 2019-2023 | 2019 | 2023 |
Final Remarks
Safety is our license to operate
People committed to the improvement of Brazilian logistics Building value with customers
High operational efficiency to capture market growth Return to shareholders with capital discipline
Attachments
- Original document
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Disclaimer
Cosan Limited published this content on 09 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2020 12:52:06 UTC