challenges in South America ANA PAULA TRILHO International Logistics

Transcription

1 AGENDA Logistics and Infrastructure challenges in South America ANA PAULA TRILHO International Logistics g Manager g O c t o b e r,

2 Agenda Brazilian Logistics Infrastructure situation Pulp and Paper volume Suzano and their Logistics challenge in Maranhão MIll Containers are they here to stay with forest products? Klabin and the Puma project

3 Brazilian Logistics Infrastructure Situation Over the last 15 years, Brazil lost 12 positions in the world ranking according to the IMD (International Institute for Management Development) Among the 61 countries analyzed, our infrastructure occupies the World Economic Forum evaluated Brazil in 53 th 107 th position position Since among countries 144 surpassed countries Brazil

4 World transport Transport matrix in countries of large territorial sizes (%) matrix Countries Railroad Cabotage/others Trucks USA 25% 50% 50% 25% 25%25% Canada 35% 52% 52% 35% 13% 13% Russia 13% 83% 83% 4% 13% 4% Germany 29% 53% 53% 29% 18% Brazil 21% 14% 14% 21% 65% 65% 18% Source: CNT Brazilian highway network (x km) IMPACTS Countries of large territorial Trucks sizes, in except lines Brazil, are leveraged by the more fact accidents that more than 75% of their modals older are focused truck fleets on volumetric mass as part lack of their of qualified global people transport matrix higher freight costs

5 Global Quality Ranking Logistics Infrastructure of Emerging Countries 1 = Best performance 144 = Worst performance General Roads Railroads Ports Airports World transport South Africa China IndiaRussia i matrix South Africa China India Russia China India Russia South Africa South Africa South Africa China India Russia India China Russia Source: World Economic Forum HOW IS OUR COMPETITIVINESS?? Above numbers speak for themselves!!

6 Latest news on infrastructure Although very shy, the largest amounts of investments in infrastructure on the past few years went to airports and roads The worst part of it all is that when private companies want to invest in their own infrastructure, finds endless obstacles, instead of finding incentives/benefits

7 Latest news on infrastructure Two months ago the government announced new infrastructure concessions that will raise up to R$198 billion over the next two years In 2012 the government tried a similar movement, but only succeeded in 1/5 of the project; 1) Airports R$ 8.5 bi 2) Ports R$37.4 bi 3) Roads R$66.1 bi 4) Railroads R$86.4 bi New rules for this year s concessions have been announced and there is great hope the process will be faster and simpler

8 Market Pulp LatAm Brazil Others 12,0 79 7,9 13,33 8,7 14,8 9,8 +5% 16,8 11,0 18,7 13,4 Net Exports Million t 19,8 14, ,2 4,6 5,1 5,7 5,2 5, Source: RISI

9 Paper Production Brazil +3% Million t Source: RISI

10 Puma Project j

11 116 years INTEGRATION AND MARKETS 116 STRONGLY LINKED TO THE CONSUMER MARKET PAPER and FOREST PULP CONVERSION 243 thousand ha EUCALYPTUS AND PINE FORESTS 1.7 million tonnes 330 thousand tonnes OLD CORRUGATED CONTAINERS COATED 750 BOARDS thousand tonnes 220 thousand tonnes CORRUGATED BOXES AND KRAFTLINER INDUSTRIAL BAGS AND SACK KRAFT 1.0 million tonnes

12 PUMA Project Annual production capacity 1.5 million tons of market pulp 1.1 million tons of short fiber (eucalyptus) 04million 0.4 tons of long fiber and fluff

13 Total constructed area: 200 hectares equivalent to 200 football fields Reference in forest management: Competitiveness and efficiency: Average distance between forest and mill 72km 107k hectares planted forests will supply the new plant

14 700 millions From taxes in the investment phase 300 millions From taxes annually when the plant is in operation Distribution of incremental ICMS generated by the new plant to 12counties Ortigueira, Cândido de Abreu, Congonhinhas, Curiúva, Imbaú, Reserva, Rio Branco do Ivaí, São Jerônimo da Serra, Sapopema, Telêmaco Borba, Tibagi and Ventania

15 Annual production capacity MILLION TONS OF PULP 1,1 million Tons of SHORT FIBER 900kt 200kt Export with the exception of South America South America 400 thousand Tons of LONG FIBER Part converted into fluff 400kt All markets

16 LOGISTICS The Logistic Unit in Paranaguá will store woodpulp in bales. The total capacity of storage is 65 thousand tons, which will be received by railway and transported by road to the port. 441 Km 5 Km By railroad until Paranaguá 5 Km by road until the Port Puma (Ortigueira - PR) Logistic Unit of Paper and Pulp (Paranaguá) Port (Paranaguá)

17 Dynamic of sales 900 kt Industrial efficiency Commercial experience Forest Pulp Mill Paranaguá Port Final Consumer

18 Thank you! klabin.com.br