In 2011 Santos Brasil posted the best commercial, operational and financial performance in its history. The logistics and vehicles handling areas grew significantly and Tecon Santos improved sharply in productivity, attaining an operating average compatible with the best European terminals.

The first figures of the year are telling: growth of 30.1% in gross revenue, to a total of R$1.27 billion; growth of 47.3% in EBITDA, to a total of R$456.9 million; an increase of 120.2% in net income, to a total of R$246.6 million; and growth of 33.3% in vehicles handling, totaling 205,603 vehicles handled during the year. Further, Tecon Santos rose from 55 movements per hour per vessel level as posted in 2010, to 78 per hour in 2011.

This excellent performance was the result of investments in infrastructure, equipment and, primarily, in the development of our team. In 2011 we increased resources allocated to training by 65%. We also invested in projects focused on innovative activities and in the involvement of the Company's principal operating processes. These initiatives brought direct benefits, not only to Santos Brasil, but also to our clients, who end up receiving faster, safer and more timely service.

As public service concession holders, we seek to position ourselves with tools indispensable to Brazil's foreign trade, anticipating the needs generated by the country's growth and offering competitiveness to users of our terminals. We are also aware of our socio-environmental responsibility and we know that the successes achieved to date will only endure if combined with respect for human beings and the environment. To that end, we are developing and supporting social and environmental actions focused on the development of communities where our units are located.

We began 2012 with a great deal of optimism and with the certainty that we will succeed in surpassing the previous year. Tecon Imbituba is actively entering Brazil's second largest containerized cargo market – the State of Santa Catarina. The terminal is now ready to handle the largest ships on the planet, and will be critical for the growth of foreign trade in the country's southern region. In logistics activities, we will remain focused on custom-made solutions for clients of our port terminals. Integrated operations will continue to grow and will be increasingly more important to our portfolio. In the northern region, Tecon Vila do Conde's largest market is the Caribbean and the United States. With the U.S. economic recovery, we also expect an increase in its growth rate. Tecon Santos and the Vehicles Terminal remain the biggest and best alternatives for container and vehicles handling, maintaining leadership at the Port of Santos.

Constant and sustainable growth, based on the efficiency gains we are providing to our clients, made Santos Brasil a leader in container operations and port logistics. We will continue to work in this direction in order to have an increasingly strong and competitive company that actively contributes to the country's development.

Antonio Carlos Sepúlveda
CEO