Investment Thesis: Create a logistics company offering low transportation costs using a mix of trucks and rail for sugar and other agricultural products.
Pampa has a significant stake in Agrovia, a company created from a spin-off of the logistics division of one of the largest global sugar traders. Agrovia provides services to trading companies, as well as directly to mills and represents an alternative to road transportation providers. It offers integrated transportation and storage solutions for the Brazilian sugar exports. The company, originally founded around sugar logistics business, has potential to develop logistics business for other related agricultural products (grains, ethanol, fertilizers, and storage).