Santos Brasil

Santos Brasil's core objective is to carry out port and logistics operations of containers and vehicles in regions in Brazil and abroad that have the potential to accelerate its growth, and to develop port gateways that serve as the entry and exit of cargo from the respective regions, thus maintaining and extending its leadership in the domestic market. Its focus is on operating port terminals for public use, which provide public port services to all or anyone that needs to transport and store containers and vehicles using waterways. At the same time, the Company is working on the vertical expansion of the logistics services chain for containers, general cargo and vehicles coming from, or intended for, long distance waterway transport and cabotage as a way of maximizing its growth by capitalizing on the synergies between the operations. By providing logistics solutions at multimodal container terminals, as well as bonded warehousing and customized transport and distribution solutions through its units and terminals located in the states of São Paulo, Santa Catarina and Pará, the Company aims to shorten the logistics routes for its clients through intelligent alternatives that reduce costs and time based on the concepts of speed, safety and quality, which are inherent to its mission. The results of this approach are the development of maritime transport, the local community and the regions where the Company operates, as well as the appreciation of the invested capital. These qualities guarantee its recognition as the benchmark in port services in Brazil, but are not sufficient to maintain its leadership in a competitive sector that is capital intensive and requires constant professional evolution and technological upgrade. The objective of preparing the operations with excellence to meet the medium- and long-term demands drives the investments needed for sustainable growth, which generates value for shareholders and society. The potential increase in the operational depth of the navigation canal of the Port of Santos, along with the Panama Canal expansion, should change international shipping traffic bound for Brazil, enabling vessels of up to 12 thousand TEUs (new-Panamax) to enter the Port of Santos canal, further consolidating its position as Brazil's leading hub port. Currently, only vessels of up to 9 thousand TEUs can berth in Brazilian ports. In step with these growth prospects, Tecon Santos acquired six new ZPMC ship-to-shore cranes in 2010 to service new-Panamax vessels, which will soon navigate the Brazilian coast. In 2015, the Presidency' Ports Secretariat ("Secretaria de Portos da Presidência da República", currently incorporated by the Ministry of Transportation, Ports and Civil Aviation) have extended Santos Brasil's Tecon Santos concession agreement for extra 25 years. The Company is preparing itself for a new investment cycle in the terminal aiming for higher efficiency and quality of service rendered. Along with Tecon Santos, Tecon Imbituba is ready to receive large vessels, and become a hub port for southern Brazil and for South America. In the North region of Brazil, the Company's operations at Vila do Conde (Pará) has benefit from the containerization of cargoes in the region. Wood, pepper, high value-added metals and frozen beef are the products handled by Tecon Vila do Conde, located a little over 100 kilometers from Belém, the state capital. Tecon Vila do Conde serves as the regional gateway, offering economy and convenience to ship-owners by providing better operating conditions for vessels that require greater depth and the possibility of cargo distribution by barges to other regions, such as Manaus and Santarém. The extension of the Tecon Vila do Conde concession contract in November 2017 for extra 15 years will further boost the terminal productivity and the quality of service provided through investments in operational improvements and capacity increase. Santos Brasil Logística, concentrated in São Paulo state, has operations in the whole container logistics chain through its CLIAs, distribution center and road transportations units, offering customized services matching its clients' needs and being capable of providing differentiated logistics engineering services from the port to the consumer. The Company expects a continuous strengthening of the domestic market and expansion of the Brazilian economy and global trade. The development of port logistics and distribution activities is inevitable in this scenario. In this context, the transport of goods in containers plays an important role. The introduction of containers as a mean of transport significantly improved port efficiency, bringing down costs and, consequently, freight, while also playing a key role in the globalization of production and in global trade. Containers allow easy and safe transportation of goods as they can be loaded on to vessels, trucks, trains and airplanes. The safety offered by containers also makes storage easier since products remain protected from sun and rain and can be stacked in order to optimize the available space. Containerization bolstered the shipping industry and shipping routes increased in terms of number of destinations and frequency. This mean of transportation benefits producers and consumers in terms of costs, flexibility and speed by reducing transit time, inventory levels and wastage. The Company believes that Brazil, with its vast area and considering the difficulties faced by its current transport network, is poised to develop multimodal transport where containers certainly present advantages as a fundamental part of logistics solutions. Santos Brasil is fully prepared to attend any increase in demand for container use, always operating in a determined and proactive manner, with the commitment to offer the best operating performance to its clients.