Railroad

Railroad

Situation

Large railroad transport company needed a strategic plan to guide its growth until the end of their concession, including the dimensioning of the potential growth and the corresponding investment.

Approach

A multifunctional team has been assembled with the participation of OrangeOne consultants, and through a series of commercial and operational analyses and methodologies, we built a comprehensive plan, including market scenarios, cargo mix, revenues, costs, investments, etc. During the plan development, several improvements, incremental and punctual, were joint developed with the correspondent management heads, allowing the inclusion of maximum growth potential allowed by the favorable scenarios.

Results

 

Capex and Return for the Selected Scenerios

Both management and board had the opportunity to discuss the developed scenarios and choose, from these discussions, the priorities for business growth. Billion reais investments were approved to foster a two digit annual growth even in the least aggressive scenarios. Initiatives were prioritized through a cost/benefit criteria in an implementation plan, which was developed and approved, and is being implemented.

(*) Return in reais per additional capacity increase