In 2007, the year the Log-In project was established, the Brazilian shipbuilding industry was going through a long period of inactivity, and the last container ship had been built in the mid-1990s. Believing in the growth potential of cabotage in light of the lack of a reliable and efficient transportation modal infrastructure in Brazil, Log-In began investing in its fleet by placing orders for vessels from a Brazilian shipyard, chartering and acquiring ships.
Log-In’s operational phase began in 2011, when the Company received its first made-to-order vessel.
Log-In’s competitors include global shipping companies and companies that operate road transportation, which is historically the main cargo transportation modal in Brazil.
Log-In’s revenues come from its three main activities: (I) Shipping, (II) Vila Velha Port Terminal (TVV) and (III) Intermodal Terminals.
Log-In offers container transportation services to the entire Brazilian coast as well as in the Mercosur. The Company currently operates the Amazonas Service (SAM), which serves the regular route through the South and North regions of Brazil, and the Atlantic South Service (SAS), which connects Brazil (Northeast, Southeast and South) with Mercosur countries. In addition, it also operates two shuttle services connecting the ports of Santos, Rio de Janeiro and Vitória.
Terminal de Vila Velha
Strategic located in the state of Espírito Santo, TVV is a terminal specializing in container loading and unloading and general cargo vessels’ operations. The terminal has a 25-year concession agreement (until 2023), renewable for another 25 years. The terminal has 108,000 square meters, of which 15,400 square meters are storage areas , and has an annual handling capacity of up to 350,000 containers
Logistics services have three intermodal terminals: TERCAM – Camaçari Multimodal Terminal, Itajaí Terminal and Guarujá Terminal. The focus of all three terminals is the integration with coastal shipping, with emphasis on multimodality.
Regarding shipping, our core business, fixed costs account for most of our costs. The main fixed costs include: fuel, running, chartering and port costs. Some of these costs are dollar-denominated, such as bunker, chartering and port costs.
Vessels use marine fuel oil (“bunker”), which is linked to international oil prices, presenting significant correlation with the prices of Brent and WTI. This cost is mainly dollar-denominated.
- Running Costs
These include internal and outsourced crew costs, and costs with the maintenance and insurance of vessels
- Chartering of Vessels
Chartering of vessels is the hiring of vessels from shipowners. Log-In charters vessels to ensure the weekly frequency of the services it provides. This cost is mainly dollar-denominated.
- Port Costs
Port costs include costs with harbor pilotage, tugboats and mooring, regardless of the volume handled; the only variable is the size of the vessel.
The main variable costs in shipping include: container handling, short-distance road transportation and container rental. Some of these costs are dollar-denominated, such as container rental and offshore handling.
- Container Handling
These costs are related to the handling of containers (loading, unloading and transshipment) in the ports. In case of containers handled in ports abroad, these costs are dollar-denominated.
- Short-distance Road Transportation
Door-to-door service requires the use of short-distance road transportation to complement shipping services. In order to optimize these costs, Log-In has important partnerships with large transportation companies.
- Cost of Containers
Log-In has chosen not to tie up capital with containers. Therefore, the Company needs to rent this type of equipment. The container fleet per vessel is equivalent to approximately the nominal capacity of TEUs.
Additional Freight for the Renewing of the Merchant Marine (AFRMM – Adicional de Frete para a Renovação da Marinha Mercante)