Brazil’s Log-In Logistica unveils BRL 1.3 billion NOR in 1H24, up 17%

On August 7, Log-In Logística Integrada released its financial and operational results for the second quarter and the first six months of 2024. The company reported a 17% increase in Net Operating Revenue (NOR), reaching R$1.3 billion in the first half of 2024.

In addition to this significant growth, the Group also achieved a historic NOR record during the second quarter, with R$684.1 million, the highest adjusted EBITDA for a second quarter at R$149.6 million, and a 3.2 percentage point increase in its Cabotage market share, with notable volume growth in the North axis.

On the ESG front, key initiatives included the Compliance at Sea project, which involved compliance training on ships, extending the “Ethical Conduct Manual” training to seafarers, the Inclusive Attitude Week, and the Digital Brazil Award for the “Humanized Digital Transformation Journey” project.

The positive results across all business units were the main drivers of the Group’s growth. In the second quarter, Log-In set historical records for NOR, both in its consolidated operations and specifically in Coastal Shipping and at the Vila Velha Terminal (TVV), in addition to setting a new volume record for Cabotage.

TVV also reported historic highs in NOR and container handling volume, along with the highest adjusted EBITDA for a second quarter. The Road Cargo Transportation unit saw an increase in NOR, benefiting mainly from the container transportation operations in the Santos Project and a recovery in average freight prices for fractional and full-load cargo at the end of Q1 2024.

According to Log-In Logística Integrada’s President, Márcio Arany, the first-half results reflect the effectiveness of the strategy developed and implemented by Log-In in recent years to advance not only its business but the logistics sector as a whole. “We have made significant investments over the past few years to expand our business strategy and offer services that increasingly align with the needs of our customers and the market. As a result, the positive outcomes and numerous records set this semester underscore the relevance of our approach,” said Arany.

Coastal Shipping

Log-In’s Coastal Shipping business unit reported Net Operating Revenue (NOR) of R$423.4 million in Q2 2024 and R$806.6 million for the first half of 2024. As for the adjusted EBITDA from Coastal Shipping, Log-In recorded R$103.7 million in the second quarter and a consolidated R$204.7 million in the year’s first six months.

The positive results from the Coastal Shipping operations were mainly driven by the NOR from the Feeder service, totaling R$129.4 million, thanks to record volume, boosted by the new Shuttle Navegantes (SSN) service and increased cargo handling by international shipping lines. Additionally, the growth in Cabotage revenue, which aligned with the record volume, was due to the expansion of the Amazonas Express Service (SEA) to a weekly frequency (biweekly in Q2 2023), which also played a crucial role in the positive outcomes of this period.

Another highlight in Coastal Shipping was the 102% growth in container volume transported in the second quarter, reaching 205,000 TEUs and a 77% increase in the first half, totaling 360,800 TEUs. Additionally, there was a 3.2 percentage point rise in Cabotage market share.

Vila Velha Port Terminal (TVV)

The Vila Velha Port Terminal (TVV) delivered a record-breaking performance in the second quarter of 2024, particularly in terms of container handling volume and Revenue from Operations and Logistics (ROL). Key factors contributing to this success included a robust coffee harvest intended for export, increased imports driven by the growing demand for electric vehicles in Brazil, and enhanced operations of Feeder vessels stemming from pent-up demand by international shipping lines to transport their cargo in the country.

As a result, TVV achieved a record net revenue of R$97.6 million in 2Q24, marking a 21% increase compared to the same period in 2023. For the consolidated period from January to June 2024, net revenue reached R$187.1 million, reflecting a 13% rise over the previous year’s first half.

In terms of container handling, the terminal managed 62.4 thousand containers in the second quarter, representing a 59% increase over the same period last year. In the first six months of 2024, TVV handled 118.6 thousand containers, up 61% from the same period in 2023.

However, TVV’s general cargo handling registered a 12% decline in 2Q24 compared to 2Q23 and a 29% reduction in the first half of 2024 compared to the same period in 2023, with 174.6 thousand tons handled in the second quarter and 302.9 thousand tons in the first half of the year.

Additionally, this quarter saw the commencement of the retrofit of the second of three portainers, scheduled for completion in 3Q24. Upon completion, the terminal is expected to restore its service, productivity, and efficiency levels, as well as expand its operational capacity.

Road Cargo Transportation

In the Road Cargo Transportation sector, the second quarter was marked by the arrival of 16 new trucks at Oliva Pinto, representing a 25% increase in the unit’s traction capacity. These new assets are part of the Fleet Expansion Project, initiated in the first quarter, which involves a total investment of R$66.2 million for the acquisition of 82 trucks and 100 trailers. This investment aims to expand the capacity for transporting fractional cargo and containers, including two new units dedicated to multimodal transport. Furthermore, Oliva Pinto made progress in implementing a management model focused on improving safety, productivity, cost efficiency, and quality indicators.

In 2Q24, the capture of synergies between Tecmar Transporte & Logística and Log-In continued, with Tecmar conducting over 12 thousand container transport operations for the Group and acting jointly with Log-In to move 1,350 TEUs of fractional cargo via Road-Cabotage in the quarter. There was also notable growth in fractional cargo originating from and destined for Manaus.

Financially, Log-In’s Road Cargo Transportation division experienced a 6.5% growth in Net Operating Revenue during the second quarter, reaching R$146.7 million compared to R$137.8 million in 2Q23. For the consolidated period from January to June 2024, the division saw a 6% growth, with R$279.3 million compared to R$263.5 million in the first six months of 2023. Improved average freight prices primarily drove this growth due to a more profitable cargo mix, the operation of the dedicated Santos project, and increased revenue from fractional and full-load cargo.

New Ship Log-In Experience

Log-In recently announced the arrival of its new ship, the Log-In Experience. This container ship, with a nominal capacity of 3,158 TEUs, a total length of 199.98 meters, and a beam of 35.2 meters, was constructed at the “Zhoushan Changhong International Shipyard Co.” in China. Along with the Log-In Evolution, the Log-In Experience is one of the most modern ships in the fleet, boasting features that enable greater fuel efficiency, reduced pollutant emissions, lower operational costs, and enhanced safety.

The Log-In Experience began its operations at the end of July as part of the Cabotage and Mercosur service known as the South Atlantic Service (SAS), replacing the chartered ship MSC Belmonte III. This addition is expected to bring greater efficiency to Log-In’s operations and contribute positively to Brazil’s national logistics framework.

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