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annual report 2011

CORPORATE PROFILE

A market reference in container and port logistics operations, Santos Brasil is a Brazilian company that actively contributes to the development of the country with continual investment in the modernization of the sector's infrastructure. Present at three Brazilian ports and capable of serving all phases of the logistics chain, in 2011 Santos Brasil maintained its leadership position in the South American container handling market according to a survey by the London consultancy firm Drewry Shipping Consultants, which has monitored the port sector since 1970.

The Company, whose administrative headquarter is located in the city of São Paulo, relies on an infrastructure comprised of three container terminals (Tecon Santos/São Paulo State -SP, Tecon Imbituba/Santa Catarina State - SC and Tecon Vila do Conde/Pará State-PA ; a vehicles import/export terminal located in the Port of Santos; in addition to integrated port logistics units in Santos-SP, Guarujá-SP, São Bernardo do Campo -SP, São Paulo -SP and Imbituba-SC.

To ensure operating synergy and efficiency in logistics management, all shipping, distribution and storage services are integrated at the Company's port terminals, developing comprehensive logistics solutions for customers from a wide range of segments: auto parts, electro-electronical appliances, consumer goods, food, pharmaceutical and chemical industries.

Listed as Level 2 of Corporate Governance by BM&FBovespa since 2006, Santos Brasil adopts a sustainable model of continuous growth that allies high financial and operating performance with environmental conservation and social responsibility.

By staying ahead of the expansion in the flow of international trade, the Company collaborates substantially towards the increase in port logistics capacity across the country, promoting continual investment in infrastructure, procurement, expansion, technological modernization, personnel training and management. The total investment promoted since its inception exceeds the R$3 billion mark (at present value) and in 2011 totaled R$196.7 million, with emphasis on the extension and modernization of Tecon Imbituba.

Operating improvements are also reflected in productivity indicators. Throughout the year, the total volume operated at the three terminals increased 6.7% in relation to 2010 and in October 2011, Tecon Santos attained a monthly record level of productivity in all its history: 80.67 MPH (movements per hour per vessel) – an index that keeps Santos Brasil in the leadership position in terms of domestic productivity and at the same level of efficiency as the world's major operators.

In addition to investing in the sustainable development of the business, Santos Brasil also aims at generating value for its stockholders and for society, adopting an ethical and transparent posture and supporting the development of initiatives focused on good environmental conservation practices and on the vocational education of youths in the communities it operates.