Cade fines Rumo BRL 247 million for making a rival’s performance unfeasible

The Administrative Council for Economic Defense (Cade) announced on Wednesday (3) that it has imposed a fine of 247.1 million on Rumo for abusing its dominant position and creating difficulties for its rail transport rival in the export of sugar.

The penalty refers to an investigation opened in 2016, after rival Agrovia claimed that it depended on Malha Paulista, controlled by Rumo, to transport sugar to the Port of Santos (SP), but that the company was creating obstacles. Therefore, Agrovia had to cease its activities.

The complaint was reinforced by an investigation by the National Land Transport Agency (ANTT), which detected signs of irregularities involving the same companies.

According to the investigations, Rumo closed the yard in Santa Adélia (SP), then essential to Agrovia’s activities, making it impossible for the company to provide services to customers during the off-season period. The maintenance of the yard, according to ANTT, was Rumo’s own responsibility.

Agrovia was unable to maintain its activities and withdrew from the market in 2016. Thus, a considerable part of the demand previously met by Agrovia was reallocated to Rumo, which benefited from the absence of the competitor in the market, concluded Cade.

In a statement, Rumo stated that it presented a defense refuting Agrovia’s arguments and that a large part of the facts had already been analyzed and rejected by Cade in a previous process.

“The company awaits the publication of the full decision and informs that it will take the appropriate measures for its reform,” said Rumo in the statement.