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UPDATE – SOUTH AMERICA/BRAZIL– NOVEMBER 2010
Safmarine in South America/Brazil
- Safmarine's South American activities form part of the company's EurAM (Europe Americas) Region.
- The Safmarine Executive responsible for the region is Francis Mottrie.
- Safmarine's Brazil headquarters are located in the city of Santos. The Brazilian regional offices are located in Sao Paulo, Itajai, Porto Alegre and Fortaleza.
- Safmarine has more than doubled its business (volumes and revenue) since opening its offices in Brazil in 2002.
- Safmarine's South America business includes import and exports to Europe, Asia, the Middle East, the Indian Sub Continent and West and South Africa.
-Safmarine Brazil's main markets are South Africa, North Europe, Mediterranean and West Africa (exports) and Far East (imports)
- We currently transport significant volumes of seafood, meat, poultry, fruits, vegetables, chemicals and pharmaceuticals in integrated reefers as well as various other commodities in dry cargo containers.
Brazil - General
- Brazil's current political and economic strengths have done much to boost trade in 2010; there is also a renewed confidence in the economy as millions of Brazilians become more economically active. All this bodes well for long term investment in Brazil.
- The Brazilian economy is one of the largest in the world, and benefits from a rich abundance of agricultural and mineral resources. The country's success in bidding for the 2016 Olympic Games in Rio de Janeiro, only two years after the FIFA World Cup in Brazil, is likely to further strengthen investor interest in Brazil.
- The newly elected president Mrs Dilma Roussef has indicated she will continue the same course set by Mr. Luis Inacio Lula da Silva. The new government is expected to introduce measures to weaken the Real, thereby increasing exports.
Volume overview 2010 - Brazil exports and imports
- Safmarine has seen a recovery in port volumes in 2010 compared to 2009. Brazilian ports are key ports of call for the majority of shipping companies serving South America and public-private investment in the country's port sector has led to increased port expansion and the development of several new port sites.
- Imports have also been boosted as a result of a stronger Real and a weaker USD Dollar.
- Exports are also strong, particularly commodities, due to higher demand worldwide, low stocks, adverse climatic circumstances in other parts of the world, which means higher demand for Brazilian commodities and higher export rates.
- The port and road infrastructure is feeling the impact of the growing volumes.
- Brazil has taken measures to protect and boost exports of furniture and shoes.
- China has become Brazil's largest export market as a result of the country's demand for iron ore and other raw materials.
- We expect these factors to drive export growth over the long term.
Safmarine shipping services to/from South America
- Safmarine has a reputation for providing service reliability and top quality reefer and dry equipment.
- In 2011 Safmarine will provide a total of six shipping services from the East Coast of South America.
These services are:
- Four services to Europe - via hubs Algeciras/Tangier/Gioia Tauro with access to West Africa, Middle East and Indian Subcontinent markets on the L Class, SAMEX, Samba and Apollo services. Through our reliable hubs in Algeciras, Gioia Tauro, Rotterdam and Bremerhaven we offer top quality service with the widest possible scope to an area stretching from the Mediterranean to the Iberian Peninsula, Ireland and the UK up to Scandinavia and the Baltic.
- Two services to South Africa/Asia - ASAS/SAX
Ports of call in South America.
Safmarine offers services to/from the following ports:
- Santos, Paranagua, Vitoria, Rio Grande, Pecem, Itajai/Sao Francisco do Sul in Brazil.
- Montevideo in Uruguay.
- Buenos Aires in Argentina.
- We also cover Asuncion (Paraguay) via Buenos Aires and Patagonia area via Buenos Aires
- We also plan to cover Manaus and Suape regions (mainly import cargo)
South America - Regional overview:
- The corridors we traditionally operate from are markets offering high potential when it comes to refrigerated cargo. And, it is Safmarine's expertise in the reefer (refrigerated cargo) industry that has fuelled the line's growth in South America. (This said, we have also been active in the dry container shipments for many years).
- Brazil is still very much regarded as a 'reefer market'; significant volumes of meat, fruits and fish are shipped from South America to West Africa, Europe and the Middle East. The region is likely to remain one of the key growth areas for Safmarine in the years to come.
- Our success in securing more reefer slots/space has meant that Safmarine is better placed to serve its reefer customers in South America.
- The Middle East is another traditional market for Brazilian reefer exports and a market which has become increasingly important to Safmarine in South America. We have increased our capacity to the Middle East and this will enable us to grow even further.
- Key to growth is the availability of reefer equipment, the optimum use of equipment (reefer containers) and the fast turn-around time of containers. Being part of the A.P. Moller Group gives Safmarine access to one of the world's largest and most sophisticated 'container pools' - both reefer and dry.
- The South America - Europe trade is predominantly an export trade with more goods moving from South America to Europe than from Europe to South America. In order to facilitate the logistics of having sufficient reefer equipment in South America, Safmarine deploys non-operated reefers (NOR), using reefer equipment for suitable dry container cargo (ie cargo which is non-soiling, non-damaging).
- The reefer market has grown, not only as a result of increased consumption of perishable goods, but also due to the move - for many years - from conventional to container refrigerated transport. Demand for reefer capacity on container vessels has been high, as opposed to demand for space on 'reefer ships'. This has been the case for major export areas in the southern hemisphere. Safmarine has responded to this trend with a focus on providing our reefer customers, both existing and new, with the opportunities and the tailor-made solutions they look for.
- One of the reasons for the popularity of reefer containers is their technological sophistication. Other reasons for choosing reefer containers over conventional transportation are: Containers make it possible for a wider variety of perishable goods to be shipped; furthermore, the type of service offered by liner shipping companies is becoming more attractive to shippers looking for year-round, fixed day shipping service as opposed to a tramping service. In many instances, shipping perishables in containers has also become more price-competitive, which is further encouraging shippers to consider containers versus conventional reefer vessels.
- Safmarine transports consumer goods such as coffee, furniture, shoes, clothes etc from South America to a number of destinations around the world.
South America - sector overview - separate updates will be posted in due course for reefer, auto and commodities (coffee)
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