Brazilian corn ethanol producer FS and railway operator Rumo SA (RAIL3.SA) reached an agreement to expand the volume of biofuel transported, company executives said on Wednesday, Nov 16. With the deal, FS will transport out of Mato Grosso state 75 million liters of ethanol per month, compared to 50 million liters previously. The biofuel producer will also purchase 80 rail cars for 115 million reais ($21.35 million) to handle the additional volume. The year-on-year traffic volume negotiated with Rumo should represent nearly half of FS’s production capacity when the company’s third division in Primavera do Leste (MT) opens in April. “From next year onward, with the opening of the new plant, FS will produce 2 billion liters, which is almost half of our production. This is a critical agreement,” said FS CEO Rafael Aboud.
Sources: Money Times/Datamar News