Brazilian minerals giant launches logistics company
Although the logistics company mostly transports goods via rail and sea, the probability of Vale Logistics Integrada SA becoming one of the largest logistics providers in South America is quite possible. According to Vale, its logistics business generated $1.5bn in revenue in 2010, a 33% increase from the year before. Most of the revenue came from shipping such commodities as agricultural products, steel products, and fuel and construction materials.
The lack of adequate infrastructure and increasing global demand for agriculture products, steel and fuel, has resulted in Vale investing heavily in railroads and ports. In fact, from 2003-2009, the company invested $7bn in infrastructure improvements. Vale currently owns four railroads and eight seaport terminals consisting of a multimodal terminal, five cargo ports and two iron ore export terminals. The company also owns a 41.5% stake in MRS Logistica, a rail and intermodal company based in Brazil and a 31.3% stake in Log-In Intermodal, a container transportation company.
For Q2 2011, Vale’s railroads transported over 7bn tons per kilometer (TKU) of general cargo. By commodity, the company’s railroads moved: agricultural products (48%), supplies and steel products (33%), building materials and forestry products (11.3%), fuels (6.7%) and others (1%). The ports and terminals handled 6.6m tons of general cargo.
As the company continues to invest in Brazilian ports and railroads, Vale could potentially diversify into other logistics services including warehousing and distribution services and trucking services. Also, the logistics company could expand into not only other Latin American countries but also potentially into Africa. As the African logistics market continues to open to outside providers, Vale‘ vast knowledge of mining could enable the company to duplicate its success in Brazil within the African mining industry.
Quelle: eyefortransport
Portal: www.logistik-express.com