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Rumo Logística invests R$15 billion in railway expansion in Mato Grosso. The goal is to double grain transportation by 2032, betting on competitiveness to export to the Asian market.
Amid growing global demand for food and the strategic importance of Brazilian agribusiness, Rumo Logística plans a new revolution on the rails that cross Brazil.
Although the company already has a massive presence in rail grain transportation, the focus now is to expand its rail network in Mato Grosso, a state that already handles 16% of the world's soybean and corn trade.
However, this ambition goes far beyond the numbers already known.
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What Rumo is planning could completely transform the country's agricultural export logistics, but will these new tracks really put Brazil ahead of the global competition?
Billion-dollar investments and impressive numbers
According to Rumo's commercial vice president, Eudis Furtado, the company has a bold project to expand its operations in Mato Grosso, Goiás and Tocantins, focusing on railway routes that transport grains to the Port of Santos.
“We are positioned in one of the most strategic regions for global grain trade. Today, Mato Grosso represents 16% of the global soybean and corn trade, and adding Goiás, this number rises to 21%,” Furtado told AgFeed portal.
Rumo already moves around 75 million tons of cargo per year, of which 32 million tons come from grains grown in Mato Grosso and Goias.
The company's ambition is to double this number in the coming years., betting on billion-dollar investments in railways.
The goal is to transport up to 60 million tons of grains by 2032, according to the company's calculations.
Railway expansion in Mato Grosso: a bet on the future
The main focus of this investment is in Mato Grosso, a state that has shown itself to be an agricultural powerhouse and which, according to experts, can triple its production without cutting down a single tree.
Currently, Rumo operates from Rondonópolis, in the south of Mato Grosso, and takes grains to the Port of Santos through a complex railway system.
Now the company is building a new railway that will extend to the north of the state, passing through important hubs such as Campo Verde, Nova Mutum and Lucas do Rio Verde.
This expansion is being carried out in partnership with the government of Mato Grosso, and the planned investment is around R$15 billion., according to Rumo.
The project will add another 750 kilometers of tracks to the company's rail network, and is already in its initial construction phase.
The expectation is that the work will generate significant savings in grain transportation costs and reduce CO2 emissions, compared to road transportation.
Comparison with the Northern Arc and competitiveness in the Asian market
One of Rumo's main arguments for this investment is the competitiveness of the routes that take agricultural production from Mato Grosso to the Asian market, the main destination for Brazilian grains.
The company's calculations indicate that the cost of exporting through the Port of Santos is lower than through Arco Norte, a route that includes the transportation of grains to Barcarena, in Pará.
According to data provided by Rumo, in the second quarter of 2023, the cost of exporting soybeans from Mato Grosso through Barcarena was R$552 per ton, while through the Port of Santos, the cost was R$538 per ton.
Furthermore, the sea distance between Santos and Asian markets is 16% shorter than the Northern Arc route., which makes Santos a more competitive option to meet Asia’s growing demand for grains.
The strategic importance of the Port of Santos
The Port of Santos is one of the main shipping points for Brazilian agricultural production.
Furtado highlighted that the port is strategically positioned to serve the Asian market, which has been the main destination for Brazilian grains over the last two decades.
“All the expansion of Brazilian agribusiness is anchored in Asia, and Santos is the best gateway for this production,” Furtado told AgFeed..
Rumo’s investments are not limited to Mato Grosso.
The company is also betting on new railway sections, such as a possible extension that would connect western Bahia to the Tocantins railway network, in addition to improvements to the Port of Santos, which remains the main export hub for the Asian market.
Robust growth and plans for 2024
In 2023, grains represented 70% of the volume handled by Rumo, and the trend is for this number to continue growing in the coming years.
The company recorded a movement record in September 2023, with 7,4 billion TKUs (tons per useful kilometer), and expects even greater growth for 2024.
Despite the climate challenges faced by agribusiness, such as heavy rains in Rio Grande do Sul that affected soybean production, Rumo remains confident in its expansion capacity.
What to expect from the future of Rumo Logística?
Rumo already dominates grain transportation in Brazil, but the company does not intend to stop there.
With billion-dollar investments in new railways and the expansion of its rail network, the company plans to double its transport capacity by 2032, focusing on efficiency, competitiveness and sustainability.
But will this strategy be enough to face the competition and maintain Brazil as a global leader in grain trade?
Do you believe that Rumo Logística’s investments will be enough to transform Brazil’s railway infrastructure? Share your opinion in the comments!
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