Intangible Assets

INTANGIBLE ASSETS

HUMAN CAPITAL

THE COMPANY'S INTANGIBLE ASSETS
ARE RELATED TO ITS CAPACITY OF
MOVING AHEAD OF THE GROWING
DEMAND FOR SERVICES.

The professionals at Santos Brasil comprise one of the major pillars that sustain business grow. In addition to encouraging the training and constant updating of its team, the Company also invests in the development of its employees, while at the same time attracting market professionals to create a dynamic and innovative organizational structure. This positioning is materialized by way of training and development programs which received investments over R$2 million and involved around 2.8 thousand employees in 2011.

TECHNOLOGICAL INNOVATION

At Santos Brasil, technological innovation is a strategic differential that supports increasingly more efficient processes and contributes towards cost reductions, improved operating performance and the quality of services offered to customers. To ensure this positioning, the Company stands out due to its pioneering attitude in the application of innovative technologies that very often become mandatory for the other companies in the sector.

The adoption of OCR (Optical Character Recognition) is one such example. Santos Brasil has used the system since 2007 to control vehicles and cargo entering and leaving on land from Tecon Santos, and in 2011 the Federal Inland Revenue Service made OCR mandatory for all container terminals across the country. A camera installed in the gate structure automatically recognizes and verifies the container number and truck license plate with no human intervention, using optical sensors. The system has also been installed at Tecon Imbituba and will be expanded to Tecon Villa do Conde and Santos Brasil Logística in 2012.

Used since the beginning of operations at Tecon Santos, container scanners have also become a standard in Federal Inland Revenue Service regulations for the port segment. The equipment performs x-ray scanning of container contents, enabling cargo identification without the need of opening them.

Since 2011, the São Paulo State Dock Company (CODESP) has made the use of VSS (Vehicles Scheduling Service), which has been employed by Santos Brasil for the last four years, mandatory. This is an in-house developed tool that enables customers (exporters, importers, customs officers, shipping agents for truck drivers) to consult its schedule and select the best time and date to make deliveries and pick-ups at Tecon Santos, thereby ensuring the constant flow of trucks and preventing traffic congestion on internal roads and terminal surroundings.

Combined with its pioneering character, the investments in technology promoted by Santos Brasil also pursue to achieve better productivity indexes. The container storage, control and shipping/landing processes are carried out using a sophisticated logistics planning system (NAVIS) that employs specific software to make yard reservations, grouping them by order of unloading at the port. All Tecon Santos cranes rely on a locating system (DGPS) connected to an outdoor wireless network that sends out shipping sequencing orders for trucks, forklift trucks and cranes to the more than 500 data collectors at the business unit.

Ensuring attendance with agility and safety by offering automated services to customers is another strategic objective achieved by using state-of-the-art technological resources:

RTG weighing – with the installation of the new system, container weighing is now also carried out by the RTG gantry cranes that handle cargo, eliminating one phase in the operation and reducing handling time.

Biometrics – the identification of drivers arriving at Santos Brasil terminals is carried out using a biometric system. With this system, only professionals who have had their fingerprints registered in the system in advance and confirmed on moment of entry are able to access the unit.
RFID (Radio Frequency Identification) system – all Company trucks are equipped with smart tags that store information on the vehicles and are used in different situations: to check maintenance machinery (Tecon Santos) or to control the coming and going of trucks in the shipping and offloading processes (Tecon Imbituba).
Tracing Log – in the port logistics segment Santos Brasil was the first company to adopt this tool, which tracks and gathers information on the cargo of exporters and importers attended. The system ensures flexibility and reliability in logistics information, generating cost reductions with the possible idleness of the vehicles fleet that picks up and delivers cargo at the terminal, thus bringing improvements to the dimensioning of operations.

ISO
9001
AT ALL UNITS.

ISO
9001
SINCE 2000
AT TECON SANTOS.

ISO
9001
SINCE 2010
AT TECON SANTOS.

QUALITY & SAFETY

Protecting the equity of our customers, partners, visitors and employees has always been a fundamental issue for Santos Brasil, which adopts safety measures and quality standards. Thus, the Company relies on the latest generation tools and trained professionals who follow the safety rules and the physical and equity integrity without compromising service quality.

Electronic security is guaranteed by the recording of images and varied data, in addition to the issuing of records on personnel and vehicles that circulate in all the areas under the responsibility of Santos Brasil.

At Tecon Santos, the communications equipment operates around the clock, and whenever necessary Customs or the Federal Police, as well as DEPOM (Specialized Maritime Police Precinct ) and PAMG (Guarujá Mutual Support Plan) are called. The area also relies on a radio communicator connected 24 hours a day to the PAMG network for emergency calls that involve the Fire Department and the Civil Defense.

The Company holds in-house audits, regular inspections, training courses and awareness campaigns, also relying on the following initiatives, which include all employees involved in operating activities: DDS (Daily Safety Dialog), CPATP (Accident Prevention Committee in Port Activities), SIPATP (In-house Accident Prevention Week in Port Activities – Semana Interna de Prevenção de Acidentes no Trabalho Portuário), APR (Preliminary Risk Analysis) and an appropriately sized and trained emergency team to attend to any emergency occurrence.

CERTIFICATES

To integrate all the applicable regulatory and legal requirements, Santos Brasil adopts an Integrated Management System that encompasses the major and most significant international standards the Company is certified for.

In 2011, Tecon Santos achieved recertification of its management systems in an assessment carried out by SGS ICS, one of the leading certification bodies in the world. The process of implementing the ISO 14001 and OHSAS 18001 certifications has also been started in the other units.

The process for maintaining unit certification is permanent. When the Company is not audited by external authorities, it holds in-house audits with support from independent consultants. All the managers and their teams participate in training sessions, analysis of their routines and goal setting in this process.

ISO 9001 (QUALITY ASSURANCE) – SANTOS BRASIL LOGÍSTICA, TECON SANTOS, TECON IMBITUBA AND TECON VILA DO CONDE
Based on standardized routines and processes focusing on customer satisfaction, the Company has followed the ISO 9001 certification standards since August 2005 for port operation activities, the unitization, de-unitization and storage of containerized cargo, vehicles and loose cargo.

ISO 14001 (ENVIRONMENTAL MANAGEMENT) – TECON SANTOS
Santos Brasil has followed the ISO rules by focusing on the environment and on the assessment of the environmental impacts of its activities in port operation activities, the unitization, de-unitization and storage of containerized cargo, vehicles and loose cargo since March 2000.

OHSAS 18001 (OCCUPATIONAL HEALTH & SAFETY) – TECON SANTOS
In 2010, the team of auditors from the certifying body recommended that Tecon Santos be granted OHSAS 18001, which assesses the management system with a focus on occupational health and safety, including the risk assessment of routines.

The Certification attests that the Company has tools that enable it to achieve, control and improve the level of occupational health and safety performance as well as the prevention and risk control of the activities developed at Tecon Santos.

SASSMAQ (HEALTH & SAFETY, ENVIRONMENTAL & QUALITY EVALUATION SYSTEM) – SANTOS BRASIL LOGÍSTICA AND TECON SANTOS
Since 2003, Santos Brasil has followed Health & Safety, Environmental & Quality Evaluation System standards for all road shipping done at Tecon Santos and Santos Brasil Logística.

ISPS CODE (TECON SANTOS)
In 2005 Tecon Santos implemented the Port Public Safety Plan and began following the international code for the protection of ships and port facilities (ISPS Code), which qualifies it to handle container-port and general cargo ships used in international maritime traffic.

TOP POSITION IN SOUTH AMERICA`S MARKET SHARE RANKING.

AWARDS/RECOGNITION

Santos Brasil is ranked first regarding market share in container handling in South America according to a survey carried out by Drewry Independent Maritime – a London-based consultancy firm that has monitored the port sector since 1970. The Company, which was ranked second in the 2009 survey, handled 1,412,944 TEU in 2010 at the three terminals it administers, which represented 7.7% of the total amount of operations in South America.

Santos Brasil's operations were also recognized in two categories in the 10th edition of the DowGOL Awards, an initiative created to recognize and encourage the safety of Dow chemical products in outsourced shipping, storage and distribution operations. A total of 24 logistics suppliers received awards for good practices promoted during 2010 and, amongst these, Santos Brasil stood out in the Warehouse and Honor to Merit categories.

In 2011, Imbituba acquired two new ship-to-shore cranes at Imbituba, capable to operate the largest vessels in the world.