Rumo and Santos Brasil consider merging container operations

Rumo, the railway and port logistics arm of the Cosan group, is considering joining its port operations with the company Santos Brasil, according to an article in Valor Econômico. Talks between the two companies started about four months ago, a source said.

According to this source, the negotiations would be to make a joint venture of port operations involving container-handling terminals and could include the national assets of both companies, in a transaction valued by the market at around R$ 5 billion.

Another person familiar with the topic said that conversations between the two logistics companies may be restricted to operations in São Paulo and that discussions for a possible partnership between them are still preliminary.

If the conversations are carried out, the negotiations between the companies may rub against the corporate design of the company resulting from this agreement.

The largest private railway operator in the country, Rumo is the company resulting from the merger between Rumo Logística and ALL (América Latina Logística), concluded in 2016. The company controls two terminals in Santos (SP) and has an interest in four port terminals, three of them located in the port of Santos and another located in the port of Paranaguá (PR). Brado is the subsidiary of the group responsible for the company’s container division.

The Santos Brasil group operates five maritime terminals. Of these, three are container terminals – Tecon Santos, in the Port of Santos, Tecon Vila do Conde, in the Port of Barcarena (PA) and Tecon Imbituba, in the Port of Imbituba (SC). The company also has a general cargo terminal, TCG Imbituba, and an exclusive terminal for moving vehicles, TEV, in the Port of Santos.

When questioned, Santos Brasil stated that it does not comment on market rumors. Rumo, on the other hand, informed that, although it always studies and maintains conversations for possible partnerships, it has no negotiations in this regard with Santos Brasil.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/empresas/noticia/2021/07/02/rumo-e-santos-brasil-avaliam-unir-operacoes-de-conteineres.ghtml

Sharing is caring!