Brazilian ethanol producer FS expands freight contract with Rumo

November 17, 2022 |

In Brazil, Reuters reported that corn-based ethanol producer FS and logistics company Rumo have signed an agreement expanding the use of rail transport to transport biofuels.

Having invested $ 21 million in the purchase of 80 wagons, FS is extending the contract with Rumo to increase the volume of transported goods from 50 million to 75 million liters of ethanol per month, according to the report.

“From next year, with the opening of the new plant, FS will produce 2 billion liters, which is almost half of our production, this is a very important agreement,” FS CEO Rafael Aboud was quoted as saying.

The ethanol is currently delivered by truck to the Rumo terminal in Rondonopolis, from where the railway leaves for Paulinia, in Sao Paulo state. 

The expansion of the transport contract, in addition to improving the efficiency and profitability of FS’s business, should also lead to a reduction in CO2 emissions of around 50%, according to the report.

More on the story.

 

Category: Fuels

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