ALL creates road transport company.

ALL Logística aims to increase its presence in freight transportation across the country. Primarily operating in the rail network, the company has decided to increase the share of road transport in its business. Currently, only 3% of its revenue comes from road transport. To boost results, ALL has joined forces with Ouro Verde to create Ritmo Logística, which will specialize in operating on the country's roads. The new company's initial revenue will be R$ 300 million. And the good news is that the business starts debt-free and without the need for investment from the partners. "Both companies had their road transport divisions internally. Now, in the new company, the business will be specific to a single purpose," says Marcelo Mokayad, president of Ritmo Logística.

Both ALL and Ouro Verde will transfer their road transport operations to Ritmo. As a result, investors punished ALLL3 shares, which fell by more than 1,2% on Friday. The new company will control ALL, which will hold 65% of the capital. Ritmo intends to maintain the same client portfolio as its partners. However, the company is targeting growth sectors in the coming years: soybeans, rice, sugar, containers, ethanol, and steel products. Currently, most of ALL's road transport operations are in consumer goods. In the short term, an initial public offering (IPO) is ruled out.