Verticalization of the logistical operations of a group of the sucroenergetic sec-tor

Abstract

Make or buy is an important decision for executives when composing the growth strategy of an organization. The horizontal and vertical limits are fundamental factors to be considered. The aim of this study is to understand the vertical integration in agribusiness, focusing on logistics operations flow of sugar production, emphasizing the process of merger between a logistics company belonging to a sugar and ethanol group, with the largest railway company in knitted extension in the country. For this purpose, it was used the research method characterized as exploratory qualitative and case study. This research made it possible to conclude that Cosan applied the verticalization strategy based on a Resource Based View; the merger, between and Rumo and ALL, generated the largest logistics operations company in Brazil; the merger process had repercussions not only on the sugar-energy sector, but also on the grain sector; Cosan has been investing in improving the infrastructure with the aim of expanding the railway network and solving the bottlenecks, resulting in an increase in efficiency and a reduction in operating costs, which, in comparison with 2016, resulted in an EBITDA growth of 36%; 28% increase in total volume transported; improvement of 4% in the variable unit cost indicator; and a 9% gain in the Diesel consumption indicator.