Logum Logistica S.A.

The Logum pipeline system will be integrated with the Tiete-Parana waterway and the Petrobras SEDA pipelines, creating an efficient, broad and flexible logistical structure, which allows pipeline delivery of the ethanol produced in the Center-South region of Brazil to the consuming markets, located in São Paulo, Rio de Janeiro, Paulinia and the Paraiba Valley. The project also contemplates ethanol delivery to the maritime terminals of São Sebastião and Ilha d'Água for exportation and supply, by cabotage, of the North and Northeastern markets of Brazil. It will be the first logistical system exclusively dedicated to ethanol to operate in Brazil, being its implementation facilitated by the fact that it utilizes, mostly, lanes and systems that are currently in operation. It is relevant to note that the project is included in the Brazilian government Growth Acceleration Program (Programa de Aceleração do Crscimento - PAC). It is expected that the Logum system will transport about 21 million cubic meters (5.5 billion gallons) by 2020 and will demand an investment of about R$ 5.7 billion (USD 3.3 billion