...Extension of railway in Mato Grosso will foster long-term growth. Rumo recently signed an agreement to build a 730 km railroad in the state of Mato Grosso, which will be an extension of the current corridor operated by the company, connecting Rondon=polis in Mato Grosso to the port of Santos. Rumo will build two new branches: one to Cuiabß and the other to Lucas do Rio Verde, in the north of the state where the region's agricultural cargo is concentrated. The extension will allow Rumo to increase its market share by expanding across the state, lowering tariffs to be competitive enough to attract additional volumes. After the extension and with the new terminals, the company could reach roughly 64% of all the demand in the Mato Grosso within a range of 200 km from the current 20%, meaning 18 million tons of additional cargo. We don't expect additional volumes or competitive advantage gains in the next few...
