By Brazil Stock Guide – Rumo S.A. (RAIL3) will inaugurate the first phase of its Mato Grosso Railway project on June 19, marking the start of operational commissioning for a new BR-070 terminal and railway section in one of Brazil’s most important agricultural regions.
The company said the Mato Grosso Railway is its largest investment project and the largest railway project currently under construction in Brazil. The first phase will have capacity to handle up to 10 million tons of grain per year, strengthening Rumo’s presence in Mato Grosso and supporting Brazil’s main agribusiness export corridor.
A Key Rail Project
The project is designed to improve logistics efficiency in Mato Grosso, a state that plays a central role in Brazil’s grain exports. By bringing rail infrastructure closer to agricultural production areas, Rumo aims to expand its ability to move grain from inland regions toward export routes.
The first phase includes the BR-070 transshipment terminal and a railway connection of about 160 kilometers to Rondonópolis, one of the key logistics hubs in the state. The terminal is expected to ramp up gradually, with potential volume additions of around 3 million tons per year over the next few years.
Rumo is controlled by Cosan, which said it continues to evaluate potential portfolio divestments as part of a broader effort to reduce leverage and simplify its structure, while denying any decision involving the sale of control of group companies.
Ahead of Earlier Schedule
The June inauguration also brings the project forward from a previous timeline. BTG Pactual noted that when Rumo revised its real capex guidance in 2024 to R$3.8 billion to R$4.3 billion, management had indicated that completion of the project was expected only in December 2026.
The start of operations in June therefore marks an earlier delivery of the first phase. For Rumo, the asset adds capacity at a time when volume growth remains an important driver for the company’s logistics business.
Focus on Grain Logistics
The Mato Grosso Railway is part of Rumo’s broader strategy to expand its role in Brazil’s agricultural logistics network. The company said the new infrastructure will contribute to the development of the country’s leading agribusiness export corridor.
The asset is expected to increase logistics efficiency by combining the existing road network along BR-070 with rail access. That structure allows cargo to be moved by truck to the terminal and then transferred to rail for longer-distance transportation.
Future Expansion Optionality
BTG said the project also preserves optionality for future expansion through additional modules. However, the bank noted that Rumo does not currently expect to commit additional capital to the next phases of the project in 2026.
The focus, for now, is on completing the first phase, starting operational commissioning and gradually increasing utilization of the new assets.
BTG Keeps Buy Rating
BTG Pactual maintained its buy recommendation on Rumo, with a target price of R$23.00 per share. The stock was trading at R$13.72 on May 29.
BTG estimates Rumo’s revenue at R$14.35 billion in 2026 and R$15.25 billion in 2027. Ebitda is projected at R$8.31 billion in 2026 and R$9.00 billion in 2027. Net income is expected to rise from R$960 million in 2025 to R$2.26 billion in 2026 and R$2.83 billion in 2027.
The bank said the company was trading at 6.8 times estimated 2026 EV/Ebitda and 6.3 times estimated 2027 EV/Ebitda.
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