Abstract
<pre>Railway transport is not only a public utility service, but also, when analyzing agribusiness, it is decisive in relation to the efficiency of Brazilian commodities to gain competitiveness against the competitors from international markets. Thus, recently the logistics and agribusiness market were spectators of the merger between RUMO (branch of Cosan) and ALL (América Latina Logística). On the representativeness of these companies, both in the transport sector, as in the agro-industrial sector, this paper aims to analyze factors preceding the merger and thus diagnose determinants further objective is to investigate what the potential consequences of such restructuring in the Brazilian railway market.</pre>
Highlights
The Brazilian agricultural market, especially if addressing the production of commodities, is extremely competitive, both internally and within the foreign market, given the fact that in both situations the producer is a price taker in the market, as the prices abroad are set in stock markets, which exhibit conducts rated by supply and demand characteristics of each product.According to the context of perfect competition, cost minimization is a key factor when it aims to maximize the economic gains of Brazilian producers
To scale the importance of logistics in the Brazilian economic scenario, as reported by ILOS (2014), it is estimated that Brazil has expenditures of approximately 11.5% of Gross Domestic Product (GDP) on logistics.In this context, in recent years, logistics operators, train concessionaries, transporters and other institutions related to cargo transportation in Brazil are becoming increasingly important, after all, when analyzing agribusiness, they are the main tools for producers to minimize their logistics costs and increase their competitiveness on the international market
Considering the representativeness of those involved in such acquisition, and the influence that the railway sector has in other sectors of the economy, after all, it is public service (ANTT, 2015), it is necessary to analyze the potential consequences of such change in the market.this article aims to diagnose the potential consequences of such a merger, focusing on the transportation of agricultural loads, investigating whether it will create a private monopoly from public goods and so affect the competitiveness of logistics and agribusiness sectors
Summary
According to the context of perfect competition, cost minimization is a key factor when it aims to maximize the economic gains of Brazilian producers. To scale the importance of logistics in the Brazilian economic scenario, as reported by ILOS (2014), it is estimated that Brazil has expenditures of approximately 11.5% of Gross Domestic Product (GDP) on logistics.In this context, in recent years, logistics operators, train concessionaries, transporters and other institutions related to cargo transportation in Brazil are becoming increasingly important, after all, when analyzing agribusiness, they are the main tools for producers to minimize their logistics costs and increase their competitiveness on the international market. In order that the sector’s competitiveness is maximized against the international market, alternative modes of transportation, such as the railways, should be set in ascending order
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