Rail Operator MRS Logística Achieves Landmark Revenue of R$ 6.9 Billion in 2023

MRS Logística, which operates a railway concession spanning 1,643 kilometers across the states of Minas Gerais, Rio de Janeiro, and São Paulo, achieved a new record in Gross Revenue in 2023: R$ 6.9 billion, marking a 14% increase compared to 2022. The favorable performance reflects the growth in throughput, with steady margins.

Throughout the year, the company transported 197.5 million tonnes of cargo, equivalent to the capacity of 3.4 million double truck trailers, all via railway—a mode known for its safety and environmental sustainability, notably reducing greenhouse gas emissions. This achievement was propelled by growth in both mining product transportation (+14.6%) and general cargo (+5.1%), culminating in a new historical record for MRS. Particularly noteworthy is the continuous growth of the general cargo transportation segment, which, once again, set a new volume record by concluding 2023 with 75.4 million tons transported.

The company surpassed R$ 3.4 billion in EBITDA, a 20.5% increase from the previous year, marking the best EBITDA in MRS’s history. Despite a robust investment volume, leverage remains under control. The Net Debt/EBITDA ratio remained at 1.0x, a comfortable level due to good operational performance and debt management strategy.

Net Income is the company’s best in history, reaching the R$ 1.2 billion mark. The volume transported by MRS in 2023 grew by 10.8% compared to 2022.

Guilherme Segalla de Mello, the President of MRS, described 2023 as a pivotal year marked by significant strategic decisions poised to drive the company forward. “Beyond upholding our commitments to the Union following the renewal of our concession, we have been steadfast in our pursuit of ongoing investments in technology and sustainable solutions, leading to heightened levels of operational efficiency and innovation,” he remarked.

Mello highlighted several key achievements, including enhancing customer service excellence, expanding market presence across new economic sectors in cargo transportation, and advancing the integration of ESG (Environmental, Social, and Governance) initiatives into the company’s overarching strategy. “We are committed to furthering these endeavors and other expansion projects, to expand the railway’s market share within the Southeast Region,” he affirmed.

Investments

MRS invested R$ 1.8 billion throughout 2023, focusing on initiatives to ensure business sustainability and compliance with regulatory obligations.

In terms of regulatory compliance, MRS successfully implemented the planned investments for the initial 12 months (A+1) following the concession renewal. Additionally, substantial strides have been made towards completing the A+2 package, slated for delivery by July 2024. Noteworthy elements of this package encompass initiatives to enhance capacity in Baixada Santista, incorporating new yards, re-capacitation efforts, signaling upgrades along rail sections, and the implementation of integrated planning systems. Notably, investments aimed at improving urban mobility in various cities along the MRS network are also notable achievements.

To continue the modernization of the railway fleet and advance operational efficiency, contractual addendums were signed for the acquisition of locomotives and wagons. MRS acquired 560 new wagons and 30 new locomotives. The delivery of assets began in the first quarter of 2024, and by the end of 2025, all new assets will be in operation.

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