Publications
Publications
- January 2020 (Revised April 2020)
- HBS Case Collection
Rumo: Infrastructure for a Healthier Economy
By: Forest L. Reinhardt, Mariana Cal, Ruth Costas and Natalie Kindred
Abstract
Brazilian logistics company Rumo operated 13,500 km in railway networks, port terminals, and inland transshipment terminals, connecting major Brazilian ports to the agriculture hubs of Mato Grosso and São Paulo state. Controlled by Cosan, Brazil's leading sugar and ethanol producer, Rumo had been through a turnaround over the last three years, including heavy investment in operational improvements and financial deleverage, taking cash flow generation from a negative $278 million in 2015 to positive $15.3 million in 2018. In 2019, as the company planned its new expansion cycle ($3.4 billion would be invested from 2019 to 2023), Rumo's executives had to find the best way to continue to capture the value created, while preserving its relations with customers and other stakeholders.
Keywords
Agribusiness; Plant-Based Agribusiness; Customer Relationship Management; Growth and Development Strategy; Logistics; Rail Transportation; Value Creation; Rail Industry; Transportation Industry; Agriculture and Agribusiness Industry; Latin America; Brazil
Citation
Reinhardt, Forest L., Mariana Cal, Ruth Costas, and Natalie Kindred. "Rumo: Infrastructure for a Healthier Economy." Harvard Business School Case 720-008, January 2020. (Revised April 2020.)