SANTOS BRASIL LOGÍSTICA

To complement the container and vehicle-handling operations performed at the port terminals, Santos Brasil also has a business unit dedicated exclusively to the development of integrated logistics solutions.

Created when Mesquita S/A Transportes e Serviços was acquired in 2007, Santos Brasil Logística stands out due to an important strategic differential: it is one of the few companies in this segment capable of integrating the industry's port and supply activities with a single logistics services package (Port-to-Door) solution.

This positioning is supported by an extensive operational infrastructure that comprises two bonded terminals with complete structures for container support activities, the so-called CLIAs (Logistics & Industrial Customs Centers) that are strategically positioned on the two banks of the Port of Santos in Santos and in Guarujá.

The Company also has two DCs (Distribution Centers). The main DC, with 105 thousand square meters and an operational and technological structure for complex logistics solutions, is located in São Bernardo do Campo, close to the southern stretch of the Rodoanel ring road. In Imbituba, there is a depot of 50 thousand square meters in total area, comprising three thousand square meters of covered area that offers project cargo port operating services, general cargo port operations, packing and unpacking of containers and general cargo depot, in addition to Port-to-Door logistics services.

PORT SERVICES AND INDUSTRY SUPPLIES ARE INTEGRATED IN A SINGLE LOGISTICS PROCESS.

Inaugurated in October 2010, the DC installed in the Jaguaré district in São Paulo has a total area of approximately 30,000 square meters and handling capacity of 33,000 pallets per month. In this unit, customized solutions such as stock management, inventories, picking, kit assembly, labeling, repackaging, cross-docking and information management are offered.

Santos Brasil Logística also has its own fleet for road cargo shipping, comprising 115 vehicles, and administers another 300 third-party vehicles involved in the distribution process.

Since 2008, when its activities in this segment effectively commenced, the Company has already invested approximately R$100 million in logistics operations. This investment includes the extension of the physical structure, the modernization of control and shipping monitoring systems and the integration of logistics and port technology platforms. Due to its expertise in port and logistics operations and in customer care in both segments, Santos Brasil handles the logistics activity in an integrated, not a modular, manner. The vertical integration of the operation ensures greater competitiveness for customers, who are able to ally agility in the logistics process with security and cost reduction. Project customization becomes feasible, and the projects are developed according to each company's needs.

The Company offers its nationwide logistics services to companies in the most diverse segments: chemical, automotive, pharmaceutical, food industry, automotive parts, electro-electronical appliances and consumer goods.

In 2011, the Company started to perform (inbound) supply logistics services for the Mercedes-Benz truck and bus production lines plants. The operation involves the shipping of import and export containers, inventory management, shipping of parts and supply of plant assembly lines.

The project was designed based on technical criteria using technological tools and integrated processes. The supply of parts occurs on a daily basis via orders sent via EDI (Electronic Data Interchange), integrated between the Mercedes-Benz and Santos Brasil Logística systems. The separation and shipping of items to meet the assembly sequence of the production lines follows the JIT (Just In Time) model; that is, at two set times, increasing the efficiency of the process and reducing the need for intermediary inventories. Results already achieved demonstrate this model's efficiency, which has resulted in an increase in the services offered to the assembly plant and other logistics requirements. At the end of the year, a new supply contract was secured with another German company in the auto parts segment.

Customized solutions such as kit assembly are offered to clients.