Tora invests R$ 75 million in expansion

Tora, a logistics operator operating in the road transport, multimodal terminal, and bonded warehouse segment, has invested R$ 75 million of its cash this year in expanding its fleet and railroad terminals. The company is also negotiating new acquisitions. The objective is to gain strength for a future public offering (IPO)

The investment includes the purchase of 160 trailers and 92 mechanical horses (trucks without the trailer). The current Tora fleet has 450 mechanical horses and 2000 trailers. “We are also evaluating investments in terminals to expand operating capacity,” said Janaína Araújo, Tora’s CEO.

According to Araújo, the company has already hired a bank to help analyze companies, expecting to close two acquisitions this semester. The focus is on logistical operators with operations that complement Tora – either in the same sectors or same geographic regions.

With revenues of R$ 670 million in 2020, Tora expects to achieve revenue of over R$ 1 billion this year. This leap will be possible thanks to the heated demand from traditional customers in the steel, mining, and automotive areas and the expansion of the portfolio with new customers in the pharmaceutical, consumer goods, and food segments. Tora began to serve these areas with the purchase of Nova Minas Logística in November 2020.

“This revenue forecast includes an organic growth of 20% and Nova Minas’ revenue, which last year was R$ 130 million,” said Janaína. The executive added that in the first quarter, sales were 10% above forecast.

This performance is in line with the market average. Cesar Meireles, president of the Brazilian Association of Logistic Operators (ABOL), said that the sector has grown, on average, 24% per year. The most considerable boost comes from e-commerce, the pharmaceutical industry, and agribusiness, with its revenues of R$ 100.8 billion in 2020.

In Janaína’s view, Tora needs to gain strength to compete with other groups that have shares trading on B3, such as Sequoia Logística (which had revenue of R$ 998.1 million in 2020), JSL Group (R$ 3.4 billion), and Wilson Sons (US$ 413.6 million). The executive said that Tora has invested in improving its governance in recent years and plans to go public in up to three years. Founder Paulo Sergio Ribeiro da Silva controls the company.

In addition to the fleet, Tora operates seven proprietary multimodal terminals in Minas Gerais, São Paulo, Espírito Santo, Rio de Janeiro, and one in Uruguaiana (RS), on the border with Argentina. The company owns the CLIA bonded warehouse (Centro Logístico Industrial Aduaneiro), providing 75,000 square meters of storage and a railway branch connected to the Santos, Vitória, and Rio de Janeiro ports. It also has an integrated logistics center in Contagem, with 35,000 square meters of storage area and 61 branches.

The company accounts for approximately 40% of imports via dry ports in Minas Gerais. In March, the operator closed a cooperation agreement with the Argentine government to encourage the business of Argentine companies in Minas Gerais. Imports will have a discount of at least 15% at CLIA. In 2020, Minas Gerais exports to Argentina totaled US$ 666 million, and imports totaled US$ 534 million. Janaína estimates an increase of at least 30% in business with Argentina.

In integrated container and multimodal logistics, Tora has been looking for partnerships. The company already operates multimodal services with MRS Logística and VLI.

Source: Valor

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