Logistics Outsourcing in Brazil

Adriana Rossiter Hofer, Ph.D. & Richard D. Armstrong

September, 2008

Phone: +1-800-525-3915 Website: www.3plogistics.com Email: [email protected]

ABOUT ADRIANA ROSSITER HOFER, Ph.D.

Adriana Rossiter Hofer, Ph.D. (University of Maryland) is a visiting professor in the Department of Marketing and Logistics at the Sam M. Walton College of Business, University of Arkansas. Adriana’s research interests include logistics outsourcing partnerships and supply chain collaboration. Her research has appeared in the Journal of Air Transport Management and several conference proceedings. Prior to pursuing her Ph.D., Adriana worked as an engineering consultant specializing in the design, privatization, and concession of transportation infrastructure. Adriana was born and raised in Brazil.

ABOUT ARMSTRONG & ASSOCIATES, INC.

Armstrong & Associates, Inc. is a supply chain market research and consulting firm specializing in 3PL market research, provider benchmarking, strategic planning, mergers and acquisitions, logistics outsourcing, centralized transportation management programs, and supply chain systems evaluation and selection. Armstrong & Associates publishes Who’s Who in Logistics and Supply Chain Management – The Americas and Who’s Who in Logistics and Supply Chain Management - International. Recent research papers include Warehousing in North America - 2008, Hanging Tough – U.S. and Global – 3PL Financial and Acquisition Results for 2007 and Projections to 2010, and Trends in 3PL/Customer Relationships.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopied, recorded or otherwise, without the prior permission of the publisher, Armstrong & Associates, Inc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Armstrong & Associates delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such, Armstrong & Associates can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

Brazilian logistics keeps gaining momentum. It is estimated that logistics expenditures account for approximately 12% of Brazil’s gross domestic product (GDP), a figure that is higher than many other Latin American countries.

The amount of freight that is managed by carriers and third-party logistics providers (3PLs) continues to increase. In addition, the portfolio of services offered by these firms has expanded and includes more specialized and strategic services. Due to competition of global 3PLs and rising customer expectations, industry standards continue to rise. Brazilian 3PLs are also moving towards new ways of doing business. They are striving to build more collaborative and long-term relationships with customers. As a result, many are able to improve customers’ operations.

At the same time, Brazilian logistics providers face many challenges on various fronts. While users of 3PLs are generally satisfied with their outsourcing relationships, the majority still contract only basic transportation and warehousing services. Users are reluctant to outsource more strategic functions. Inefficient infrastructure, lack of intermodalism, poor balance in the national transportation matrix, and tax distortions also pose difficulties for 3PL operations.

Despite these challenges, there are many opportunities and initiatives for improvement. Governments at national and state levels have been working together with the private sector in order to improve logistics infrastructure. Logistics professionals are building professional networks for the exchange of best practices and knowledge. As the market for logistics outsourcing grows, services are becoming more comprehensive, and there are an increasing number of programs for infrastructure development. In a nutshell, Brazil is an expanding market for logistics outsourcing.

Overview of the Brazilian 3PL Market

Third-party logistics, measured by the growing number of 3PLs1 and their revenues, is a dynamic industry in Brazil. Reported revenues increased over four times in the last five years. Total revenues are estimated at $14 billion (25 billion Brazilian Reais)2 for 2007. Total logistics costs for Brazil are estimated at $140 billion (245 billion Brazilian Reais). An estimated, 75% of 3PL revenues are reported yearly to the Center for Logistics Studies (CEL/COPPEAD)3 at the Federal University of Rio de Janeiro. In 2005, 133 3PLs reported.

1 In this report, a 3PL provides a minimum of transportation services and may provide value-added warehousing, etc. 2 Exchange rate, 1 Brazilian Real = 57 Cents 3 CEL/COPPEAD studies are now developed at the Logistics and Supply Chain Institute (ILOS). 3 ©Copyright 2008 Armstrong & Associates, Inc. Figure 1: Evolution of Total Revenue and Number of 3PLs – 2000-2005 (In billions of Brazilian Reais - R$)

140 25.000 133 124 120 118 114 112 20.000 107 21.327 100

80 16.433 15.000

60 10.000 10.241 40 5.000 20 6.023 4.733 3.399 0 0.000 2000 2001 2002 2003 2004 2005

Number of 3PLs Total Revenue

Source: CEL/COPPEAD

The median 3PL revenue reported was $91 million (160 million Brazilian Reais) in 2005. We estimate median revenue grew to $105 million for 2007. The cumulative annual growth rate was 38% for years 2000-2005. By comparison, the median revenue of North American 3PLs is $165 million with average total revenues of $687 million.

Figure 2: Revenue Evolution for 3PLs – 2000-2005 (In millions of Brazilian Reais – R$)

180 160.25 160 139.26 140

120

100 91.43

60 52.83 38.17 40 31.76

0 2000 2001 2002 2003 2004 2005

Source: CEL/COPPEAD

4 ©Copyright 2008 Armstrong & Associates, Inc. The median number of 3PL employees is 700. The revenue per 3PL employee in Brazil is $32 thousand. In the U.S., the revenue per value-added warehousing and distribution (VAWD) 3PL employee is about three times as much with a range of $84-$106 thousand depending on industry vertical emphasis and prevalence of reverse logistics services being offered. The mean earnings before interest and tax (EBIT) margin for U.S. based VAWD 3PLs runs 5.5 – 6%; net income margins are 3.5 – 4% depending on the year. We do not have comparable margin information for Brazil.

Figure 3: Median Number of Employees – 2001-2006 800

700 670 679 600 605

500

400 407 407 348 300

Number of Employees of Number 200

100

0 2001 2002 2003 2004 2005 2006

Source: CEL/COPPEAD

In the following table, we provide a list of major Brazilian 3PLs. Specific 3PL profiles are reproduced in Appendix A for some of these providers. A listing of over 100 3PLs is given in Appendix C.

CVRD tops the list of the largest providers in Brazilian logistics. CVRD is the world’s largest iron ore miner and supplier. Part of its logistics operations were spun off into Log-In Logística which underwent an initial public offering (IPO) in July, 2007.

5 ©Copyright 2008 Armstrong & Associates, Inc. Table 1: Largest Brazilian Logistics Providers Gross Revenues Provider (R$ Millions) Market Share Companhia Vale do Rio Doce (CVRD)* 3,200 14.5% MRS Logística 2,515 11.4% América Latina Logística (ALL) 2,400 10.9% Aliança Navegação e Logística 2,200 10.0% DHL 2,000 9.1% Júlio Simões Transportes e Serviços 952 4.3% Martin-Brower 799 3.6% Ceva 763 3.5% Tegma Gestão Logística (Coimex) 716 3.3% Rapidão Cometa 561 2.5% Luft 500 2.3% Santos Brasil 488 2.2% Armazéns Gerais Columbia 483 2.2% Gafor 400 1.8% Wilson, Sons Logística 386 1.8% Log-In Logística 326 1.5% Transportadora Binotto 299 1.4% Schio 250 1.1% Cargo Logística Integral (CSI) 222 1.0% Usifast Logística Industrial 205 0.9% Grupo Beta 200 0.9% Gefco Logística do Brasil 199 0.9% Penske Logistics do Brasil 181 0.8% Localfrio – Armazéns Gerais Frigoríficos 170 0.8% Transportadora Americana 150 0.7% Cesa Logística 144 0.7% Quick Operadora Logística 115 0.5% Movicarga/Célere 100 0.5% McLane 85 0.4% Conseil Logística e Distribuição 80 0.4% Gtech Transportes & Logística 78 0.4% Standard 77 0.3% TDS Logística 66 0.3% Grupo TPC - Operador Logístico 65 0.3% Metropolitan Logística 65 0.3% Exata Transportes e Logística 59 0.3% Marimex 59 0.3% Delta Records 55 0.2% Fly Express 47 0.2% Multilog 46 0.2% Telefônica Gestão de Serviços (TGESTIONA) 45 0.2% Intermaritima 42 0.2% AGR/Rodasul 39 0.2% Santa Rita Logistic 35 0.2% Grecco Logística 33 0.1% MBB Comércio e Serviços 33 0.1% Syn da Amazônia 32 0.1% Petrolog Serviços e Armazéns Gerais 25 0.1% AGM Logística e Ger. Docum. 21 0.1% Support Cargo 15 0.1% Total 22,026 100.0% *Revenues of CVRD are solely in logistics. 6 ©Copyright 2008 Armstrong & Associates, Inc. Description of 3PL Services Offered and Contracted

Background and services offered. Brazilian 3PL service offerings are dominated by value-added warehousing and distribution (VAWD), dedicated contract carriage, and consulting. There are a growing number of sophisticated VAWD operations in Brazil. For example, the sites visited by Armstrong and Associates (Appendix B) were very similar to U.S. operations. As in the U.S., many logistics providers have emerged from carriers that expanded their services. Trucking companies have traditionally performed the transportation services between manufacturers, wholesalers, retailers, and general warehousing companies. But since the early nineties, the structure of commercial supply chains started to change. With lower or in many cases eliminated trade barriers, Brazilian manufacturers faced new and fierce competition from an influx of national and international products. As a result, firms were forced to review operations and cut costs. A common solution was to eliminate the middleman between manufacturers, wholesalers, and distributors.

This transition impacted the management of the distribution channels, especially in the Northeast, where distributors were widely used. The national industrial base was heavily concentrated in the Southeast region of the country (i.e. São Paulo and Rio de Janeiro) and the Northeast was viewed as less profitable, distant and operationally challenged. Eliminating distributors forced companies to identify and understand the region’s commercial and operational complexities. A new market niche became attractive to firms offering warehousing and distribution services. The elimination of the middleman created more need for a third-party who would warehouse the products close to the point of consumption and at the same time, manage local distribution.

Trucking companies saw this business opportunity and started to add new services to their portfolio. Examples of carriers who expanded their services are: Rapidão Cometa, Trans Quadros, and Progresso. Also, other firms linked to port operations and warehousing started to offer these services as well. Other firms more dedicated to warehousing are: Armazém Brasil, Danzas, Fly, and Transmobras. Firms work in the Northeast with Armazém Columbia, McLane, and Keepers. General warehouses “Armazéns Gerais” do not normally provide value-added services or offer transportation, and only provide basic services. There are also providers who focus on other specific functions such as customs clearance and documentation, for example, Iron Mountain.

Figure 4 presents the array of services offered by 3PLs in Brazil. Services related to transportation management and warehousing are the most common services offered, followed by packaging and kitting. More strategic services such as supply chain solutions are offered to a less extent by a small group of 3PLs (refer to the complete list of Brazilian 3PLs in Appendix C). These 3PLs, such as Rapidão Cometa and Atlas, have evolved and broadened their portfolios with more complex and strategic services. Some of them have also joined alliances with global 3PLs operations in Brazil, such as FedEx, DHL, and UPS. In addition, outsourcing warehouse work forces is gaining momentum.

Regionally, Southeastern Brazil still has the highest concentration of 3PL activity and can be described as being similar to Europe. 3PL activity is lower in the Northeast and sparse in the North region. Sixty-one percent of 3PLs offer warehousing services in Northern

About one-fourth of 3PLs reporting to CEL/COPPEAD have offices outside Brazil. Most international operations are still conducted via alliances with global 3PLs. Quality standards also have become a competitive differentiator among 3PLs. Two-thirds of 3PLs have some type of ISO certification.

Figure 4: Services Offered – 2006 120%

98% 98% 97% 100% 95% 94% 91% 91% 85% 85% 83% 79% 78% 80% 80%

62% 60%

40%

20%

g t. ment time ices p - v TM Dist. Ser or-to-Door Packaging ax Support s ransference o T Just-in Warehousin T D Invoice Mgm Kits Assembly DCC Truck Runs Reverse Logistics Intermodal Mgmt. Custom Project Develo TM Dist.

Source: CEL/COPPEAD

Logistics functions outsourced. Figure 4 provides a breakdown of functions outsourced by companies to 3PLs in Brazil. The main categories contracted primarily include basic transportation services and warehousing. Many users are still not willing to contract operations to third parties, claiming that services provided would not meet their quality standards nor support logistics operations at a national level. It is relevant to note that this pattern is very similar in other regions of the world, even in the U.S. and Europe, according to the studies on third-party logistics conducted annually by John Langley and supporters4 with 3PL users from the Americas, Europe and Asia. Langley’s results are given in Table 3 but do not include a sector breakdown.

4 2007 Third-Party Logistics: The State of Logistics Outsourcing 8 ©Copyright 2008 Armstrong & Associates, Inc. Langley’s 2007 study reports that domestic transportation in North America is outsourced 77% of the time. North America, dominated by the U.S., has significantly more private fleet transportation activity. Forty-seven percent of U.S. trucking is done by private fleets. Europe more closely resembles Brazil with 91% of domestic transportation being outsourced.

Table 2: Percent of Logistics Services Outsourced By Activity Sector in Brazil – 2003 Multimodal DCC Supply Transference Distribution Transport Truck Kits Customs Project Supply Activities Transport Transport Transport Mgmt. Runs Warehousing Assembly Services Dev. Mgmt.

Food 82 100 100 18 9 91 73 82 27 18

Automotive 100 87 93 60 67 87 53 93 27 47

Beverages 100 100 83 33 0 67 17 83 17 0

Electronics 86 100 100 43 29 86 57 86 29 29

Hygiene, Cleaning & Cosmetics 75 100 100 50 25 100 75 100 25 0

Construction Material 88 88 100 44 6 75 13 100 38 13

Paper & Cellulose 100 50 75 50 0 100 100 100 0 100

Chemicals & Petrochemicals 100 83 100 33 0 100 17 100 67 33

Steel & Metal 100 100 100 27 9 64 18 91 27 18

Technology 80 100 100 80 0 40 40 80 40 40 Source: CEL/COPPEAD

Transportation is the main activity outsourced in the Brazilian 3PL sector and it is viewed in four segments:

1) Transfers from manufacturers or ports to warehouses – usually done with for-hire trucking (Transporte de Transferência). 2) Transportation from warehouses to customers – mostly done by for-hire carriers but sometimes done with private fleet or 3PL passes (Transporte de Distribuição). 3) For-hire supplemental transportation. 4) Milk runs – private fleet dedicated contract carriers picking up materials from vendors or providing dedicated store deliveries. Seventy-five percent of Brazilian 3PLs provide trucking services.5

The extent of use for each transportation category and warehousing varies across industries. For example, for the Food and Food Related (FFR) sector, nearly all transportation is done by for-hire carriage (82 – 100% by category). Nine percent is done with milk runs. Ninety-one percent of FFR companies outsource warehousing with 73% using value-added warehousing services (kitting)6. Eighteen percent of FFRs outsource

5 Brazil – CSCMP Global Perspectives 2007 6 It appears to us that “kitting” includes palletization and shrink wrapping. For example, 100% of paper and paper products shipments are “kits”. This is a broader definition than that used in the U.S. 9 ©Copyright 2008 Armstrong & Associates, Inc. transportation management to 3PLs. Twenty-seven percent use 3PLs for consulting solutions.

Automotive companies use milk runs extensively for controlling inbound parts flows. This practice is similar to North America, Europe, and Japan. These milk runs are normally tied to sequencing centers, just-in-time, and kanban activities. They are similar to services provided by Penske and Ryder for North American automotive plants. Between 2001 and 2006, 3PLs dramatically increased service offerings to support milk runs. 3PLs also provided more financial support to customers.

Use of warehousing and customs brokerage/import-export activity is higher in Brazil than North America and Europe. Warehousing outsourcing was reported as low as 40% in Brazil for Technology/Computers/Telecom (TCT). In the TCT area, commodities are high-value and easily transportable. The percent of owned warehousing for this sector has been decreasing in Brazil since 2001. Thirty-seven percent of warehouses are now owned or leased by 3PLs. This measure is a good indication of 3PL market expansion.

Anything involving metals and particularly iron and steel, is heavily influenced by the results of Companhia Vale do Rio Doce (CVRD). CVRD is the world’s largest iron mining operation and Brazil’s largest 3PL. It owns four rail lines and runs a large port. Appendix B, Armstrong and Associates’ Provider Site Visits, provides a quick overview of CVRD’s impact. Part of CVRD’s infrastructure was transferred to Log-In Logística in 2006.

Construction materials are commonly controlled and kept accessible by construction companies. Seventy-five percent of companies in the CEL/COPPEAD data report outsourcing some warehousing. We expect that this number is significantly lower in the U.S. and Canada where more of this activity is under private company control.

Many of the major beverage brands (67%) have their own warehousing operations in Brazil as they do in the U.S. It is likely that for this vertical there is some biasing of results because of non-respondents.

Table 3: Percent of Logistics Services Outsourced By Region All North Asia Latin Service Regions America Europe Pacific America Domestic Transportation 83 77 91 85 79 International Transportation 79 68 87 89 71 Warehousing 69 71 68 73 60 Customs Clearance & Brokerage 67 65 58 78 64 Forwarding 51 51 51 60 38 Shipment Consolidation 43 44 44 45 37 Product Labeling, Packaging, Assembly, Kitting 34 31 33 34 41 Transportation Management 32 33 41 27 24 Reverse Logistics 31 32 33 29 29 Cross-Docking 31 36 35 26 25 Freight Bill Auditing & Payment 25 51 18 14 10 Fleet Management 15 11 21 12 13 Supply Chain Consultancy 14 18 11 11 17 Order Entry, Processing, Fulfillment 14 13 7 15 28 Customer Service 13 10 10 17 18 LLP/4PL Service 11 13 11 10 10 Source: Capgemini, GIT, SAP, and DHL, 2007 Third-Party Logistics: The State of Logistics Outsourcing 10 ©Copyright 2008 Armstrong & Associates, Inc. A major feature of modern supply chain management and third-party logistics services is the necessity for even more sophisticated IT applications. CEL/COPPEAD results for IT and technology utilized are given in Figure 5. Internet related activities, such as track and trace and event management, are used or planned to be used by 95% of Brazilian 3PLs. For comparison, Langley reports 88 – 91% in his database. Warehouse management systems (WMS) positive responses are 89% for CEL/COPPEAD and 85% for Langley’s sample. Overall, the use of the Internet and IT appears quite similar between Brazil and North America.

Figure 5: Technologies Used 120%

100% 95% 89% 84% 77% 79% 80% 75% 70%

60%

40%

20%

s t) e et) on leet) leet) e fle f ERP f fl tati WMS n r tor o sul c w own a o ( on tr ( C (contract l (con l o Control o Control ternet tr tr o In n PS n G Radi io Co d a GPS Co R

Source: CEL/COPPEAD

Managing relationships. In Brazil, the relationships between 3PLs and customers have many similarities with their U.S. counterparts. Motivation to outsource and satisfaction levels are similar. Brazilian companies who outsource are generally satisfied with their 3PLs. According to a 2003 study from CEL/COPPEAD, 81% were satisfied, 10% were neutral, and 9% were dissatisfied. This percentage is slightly lower than what was found by the Langley et al study, in which 87% of 3PL users in North America and 86% of 3PL users in Europe claimed to be satisfied with the relationship. It is reasonable to infer that this is due partly to maturing markets where the parties have a better understanding of the partner and as a result, more reasonable expectations.

It is relevant to note that Brazilian firms expect operational performance from 3PLs, but also place a high value on personal relationships. A recent study conducted at the University of Maryland surveyed almost 300 users of a Brazilian 3PL (Rapidão Cometa) with nationwide geographical coverage in order to identify relationship patterns. 11 ©Copyright 2008 Armstrong & Associates, Inc. Respondent firms belonged to various industries and operated in different regions of Brazil, therefore, giving a broad picture of relationship characteristics in Brazil. Semi- structured interviews with several 3PL customers, from different industries and with varying company sizes, consistently pointed out that their satisfaction levels were highly determined by the individual attention the customer receives in terms of weekly visits by a 3PL representative (intangible performance), cargo integrity and on-time performance (operational performance), and freight visibility.

The interaction in terms of exchanges of operational information is still limited. This is probably due to the standard nature of services outsourced. While 65% of the users exert operational controls over their 3PLs (e.g., freight tracking and weekly emails), only 29% claim to frequently exchange information regarding their own operations. This could help in the identification of solutions and operational improvement. However, 45% of the users claim to discuss planning with their 3PL. It is relevant to note that dedication to the relationship, combined with consistent and frequent operational information exchanges and planning pay off. Firms with higher levels of long-term orientation, joint planning and operational controls experienced higher levels of marketing and logistics performance (e.g., asset reduction, lower cycle times, lower logistics costs, higher product availability). These results are consistent with the findings of an earlier survey conducted by CEL/COPPEAD with 3PL users in 2003: 60% of firms achieved lowered costs, 52% reported better service to their own customers, and 39% reported positive IT results.

The Maryland study also found that identification of potential 3PLs to work with is still done mainly through word of mouth. This is mainly from conversations with managers from other companies who already use a particular 3PL. In addition, our results with regard to new business development by 3PLs indicated that having larger service offerings and previous contracts is very important in winning new business. About two- thirds of 3PL business is from renewed contracts and new request for proposal (RFP) processes. About one-third is from direct sales where a brand name and a significant service offering are extremely important. These results are similar to those of an Armstrong & Associates study done in 2007 (Brand Recognition, RFP Activity & Expected Profit Margins for 3PLs – 2007). In that study, 38% of new business for U.S. and Canada based 3PLs was from direct sales. Twenty-nine percent was from RFP processes. Thirty-Three percent was a direct expansion from existing accounts. Similarly, in Armstrong & Associates’ research, we have found that 93% of customers renew their contracts. In the U.S. and Brazil, the 3PLs described as “winners” have some standout features. They have been in the market longer, were larger, more often ISO certified, had VAWD skills and could provide milk runs. Not surprisingly, more of these successful 3PLs have experience outside Brazil and greater IT capabilities.

According to the CEL/COPPEAD study, the most important items in considering using a 3PL for Brazilians are cost savings, whether the 3PL has experience with similar companies, and the qualifications of the 3PL. It should be noted that the most important items are consistently similar with U.S. results.

Brazilian motivations to outsource are also very similar to those in the U.S. When Brazilians were asked why they outsourced to 3PLs, 85% cited reduced cost. Seventy-six percent said they wanted to focus on their core business, and 68% said it would increase

12 ©Copyright 2008 Armstrong & Associates, Inc. their flexibility. Functionally, Brazilian companies are looking for several things from outsourcing. Forty percent simply plan to add warehousing. Thirty-one percent expect consulting help, better projects design and solutions. Twenty-five percent expect better inventory control. Twenty-three percent want kitting and other value-added services. They also expect more transportation management, import/export help and dedicated contract carriage.

Relationship Corner: Brazilian 3PLs strive to innovate and build stronger relationships with their customers. There are two prominent trends in the logistics outsourcing industry in Brazil. First, traditional 3PLs have expanded service portfolios to include more strategic services. Second, there has been a strong shift in the nature of their customer relationships; they are now more long-term focused and interactive. For example, Rapidão Cometa (www.rapidaocometa.com.br) is headquartered in Northeastern Brazil and was founded over 65 years ago. It began operations by providing basic transportation services. Now it offers value-added 3PL services, such as supply chain management, distribution management, and reverse logistics. It has 34 subsidiaries reaching over 4,000 locations in Brazil. It has over 12,000 active customers and moves over 500,000 tons a year. The cases below illustrate this powerful trend in contract logistics in Brazil, i.e., 3PLs recommending redesigning customer’s operations, to improve operational performance in both firms.

The relationship between Rapidão Cometa and Azaleia, one of the largest footwear companies in Brazil, is 10 years old. Rapidão Cometa redesigned Azaleia’s distribution network and allowed the firm to reduce the number of 3PLs it used from 15 to 4. Distribution costs and lead times were reduced by 30% and from five to three days respectively. These increased efficiencies have positively impacted the production process as well. Rapidão Cometa also recommended a change in packaging for one of Azaleia’s shoe lines. This allowed each truck to carry 40% more shoe boxes, leading to lower product and transportation costs.

In order to serve Natura, one of the country’s largest cosmetic companies, Rapidão Cometa oversees its complex distribution network in the Northeast region of Brazil and manages over 100,000 home deliveries a month. Rapidão Cometa optimized the distribution network and assigned exclusive teams and vehicles to the project. Distributing to over 2,000 destinations, Rapidão Cometa has reduced the previous delivery transit times by an average of three days.

Through a joint effort between technicians from both firms, Rapidão Cometa created a new logistics model in order to improve the operations of Telemar, the largest Brazilian telecommunications company. Rapidão Cometa assumed responsibility for the warehousing and distribution of Telemar’s infrastructure and maintenance parts, development of the distribution network, information management, and reverse logistics. As a result, Telemar can focus solely on its telecommunication services business.

Challenges and Opportunities

Logistics outsourcing in Brazil faces numerous challenges. First and foremost, basic logistics infrastructure needs to be improved. The trucking industry, which transports the majority of Brazil’s freight, has revenues equivalent to 6% of Brazil’s GDP and employs

13 ©Copyright 2008 Armstrong & Associates, Inc. directly and indirectly more than 3.7 million people. Still, according to the National Department of Infrastructure and Transportation (DNIT), in 2004 only approximately 10% of the 1.6 million km of roads were paved. Many relevant key national highways are still single lane and in bad condition. Moreover, the average truck age in Brazil is 18 years. As a result, accidents and fatalities occur quite frequently. In 2004, over 112,000 accidents were registered, accounting for more than 6,000 fatalities (DPRF/MJ). Trucks were involved in approximately 30% of the accidents.

Multimodal terminals are scarce. In 2004, there were 310 multimodal terminals in Brazil. There is a concentration of almost half (144) of these terminals in the Southeast region. The Northeast comes in second place, with only 52 terminals. Another obstacle to optimal modal share in the national transportation matrix is the lack of rail transportation flows between the Southeast and Northeast regions of the country. Different gauges are used in the system, which hinder the connectivity.

In order to compensate for this inefficiency in infrastructure, it is estimated that Brazilian companies need to maintain inventory for 65 days; whereas in the U.S., inventory levels are at 43 days. This translates to $118 billion in excess inventory.

In order to fight against inefficiencies in the national logistics system, the federal government is developing the National Plan of Logistics and Transportation (PNLT) which identifies and prioritizes investments in infrastructure for all modes of transportation. The objective is to improve the flows of passenger and cargo and balance the transportation matrix. The plan proposes 172 million Reais on infrastructure development – 43% on highways, 14.6% on ports, and 29.4% on rails. According to the PNLT study, in 2005 highway transportation accounted for 58% of the transportation matrix, rail 25%, water 13%, pipeline 3.6%, and air 0.4%.

There is also a strong interest in increasing the efficiency and utilization of national ports. This includes alleviating the ports in the Southeast and making a better use of the ports in the Northeast. Currently, there is no integration between the ports from the Southeast and Northeast. There is interest in better connecting these ports with the rail network. The PNLT identifies the ports of Santos (São Paulo), Itaquai (Rio de Janeiro), Rio Grande (Rio Grande do Sul), Suape (Pernambuco), and Itaqui (Maranhão) in particular for potential growth in freight export and rail connectivity within the country.

The tax system in Brazil also causes sub-optimal transportation networks. A primary obstacle is the Tax on Circulation of Goods and Services (ICMS). The ICMS is different in each of Brazil’s 27 states. It also varies by product and by state. Tax rates vary from 7-19% of the value of goods transported. The ICMS affects 90% of Brazilian truck shipments. In many cases, the cost of taxes exceeds freight charges by five times. The tax consequences lead to the construction of sub-optimal truck routes on a regular basis so companies can take advantage of tax incentives. For comparison, in the U.S., burdens on goods movement are limited by the “commerce clause” in the U.S. Constitution which specifically prevents “undue burdens” on interstate commerce.

Another transportation challenge in Brazil is that 50% of drivers are self-employed. Owner-operators regularly have more “freedom” than company drivers making network controls and optimization difficult.

Another serious problem is related to cargo security. Organized criminal activity in Brazil is not rare and commodities are at risk. One of the 3PLs we visited in Brazil had an auto parts warehouse cleared out over a weekend by a group which included individuals in police uniforms. The theft occurred in São Paulo which has similarities to the New York/New Jersey ports and airports of 50 years ago where “five finger” discounts were common. We expect that many TCT companies are very careful because of potential theft. São Paulo generates 40% of the Brazilian GDP and as a result, the majority of Brazilian theft occurs in its metropolitan area.

A final point of concern is related to the scarcity of professionals with formal logistics educations. This leads to a lack of understanding of basic logistics concepts and models. Universities and colleges have started to offer certificate and graduate programs in logistics. Several entities, such as the Brazilian Association of Movement and Logistics (ABML) and the Brazilian Association of Logistics (ASLOG) aim to fill this gap. An innovative initiative is related to informal logistics professionals associations, such as the Group for Logistics Studies (GELPE) operating in the state of Pernambuco (www.gelpe.com.br). It is a non-profit organization and was created by logistics professionals who felt the need to enhance their knowledge in the field, as well as collaborate and share experiences with professionals in the same industry. It offers technical visits, seminars, and weekly discussion forums to enhance professional networking and the exchange of experiences and logistics strategies.

A few innovative partnerships between the private sector and state level administrations have been formed to enhance state’s logistics systems. So far São Paulo, Pernambuco, and Bahia have developed such programs. These are called “logistics plans” and have the objective to identify bottlenecks in the logistics systems and offer solutions to how they can be improved to attract more business. These programs go far beyond the traditional transportation plans which offer infrastructure development projects. They analyze the patterns of cargo transported within and across the states, commercial and operational supply chains, and operations of government agencies and their interaction with shippers and carriers. To achieve their objectives, major players are interviewed and new issues that are raised are analyzed. The results provide a broad overview of logistics operations and measures that can be pursued to improve the efficiency of the systems operation for all parties involved.

Closing Remarks

Despite inherent infrastructure and operational challenges, logistics outsourcing in Brazil is mostly profitable and expanding. The amount spent on logistics outsourcing is increasing. 3PLs continue to increase the number and nature of functions offered. They are focused on building long-term and interactive relationships with customers.

Appendix A Provider Profiles Companhia Vale do Rio Doce Julio Simões Transportes e Serviços Ltda. Log-In Logística Intermodal Penske Logistics do Brasil Ltda. Rapidão Cometa Tegma Gestão Logística (Coimex Logística Intregada) Transportadora Americana Ltda.

Appendix B Provider Site Visits Companhia Vale do Rio Doce Penske Logistics – São Paulo, Brazil

Appendix C List of Brazilian 3PLs

Appendix A

Provider Profiles

Provider Profile

Company Name Companhia Vale do Rio Doce Address: Av. Graça Aranha, 26, 20030-900 Rio de Janeiro, Brazil Phone Number: 55 21 3814-4477 Email Address: [email protected] Fax Number: 55 21 3814-4040 Website Address: www.vale.com

COMPANY BACKGROUND Subsidiaries or Related Companies Parent Corporation: Log-In Logística Intermodal S.A. (Docenave) Year Started in Logistics: 1962 Asset Focus: A Seamar Shipping Corporation Market Area: Int'l (A = Asset Based, N = Non Asset Based) Founding Business: Mining OVERALL CAPABILITY Overall Capability of Provider: Very good bulk commodities company. KEY PERSONNEL Roger Agnelli CEO Carlos Ebner New Business Director Fabio de Oliveira Barbosa CFO Eduardo de Salles Bartolo Executive Officer Logistics Francisco Nuno Planning & Control Director

FINANCIAL INFORMATION (FY 2007) Total Logistics Revenue ($Millions): 1,809 Ticker Symbol RIO; RIOPR Total Net Logistics Revenue ($Millions): 1,809 * Exchange: NYSE Total Logistics Employees (Including Drivers): 11,679 Total Long-Term Contracts Held: 100 Average Length of Logistics Contract (Years): 5 * (Net Logistics Revenue is net of pass-through revenues for purchased transportation.) ASSETS Dedicated Contract Carriage Power Units/Trucks: Total Transportation Assets: Total Warehouses & Distribution Centers: Total Tractors: Total Tractors: Total Warehouses/DC's: 14 Total Trucks: Total Trucks: Total Square Footage: 0.8 (Million) Total Other: Total Trailers: Total with Rail Doors: 3 Dedicated Contract Carriage Trailers: Total Aircraft: Avg Truck Doors per DC: Total Dry Van: Total Ocean: 13 Asset Ownership v.s. Leased: Total Reefers: Total Other: 39,590 Transportation Equipment: Owned Total Flatbeds: Warehouses/DC's: About 50/50 Total Tankers: Total Other: FREIGHT FORWARDING/NVOCC VOLUMES Total Annual TEUs: 79,488 Total Annual Airfreight Tonnes: Total Licensed Customs Brokers: MARKETS (For functional specializations, see "Customers" section.) Automotive Elements Food, Groceries Industrial

INFORMATION SYSTEMS Overall Information Systems Rating: G (E=Excellent, G=Good, C=Capable/Adequate, and I=Inadequate) Software Type: Software Vendor/Brand: Transportation Management System (TMS): Manugistics (Visibility) TMS Optimization Routines: Transportation Planning and Optimization: Manugistics (Visibility) End-to-end Matching/Continuous Moves Warehouse Management System (WMS): HighJump Mode Conversion/Optimization Network Modeling/Site Location: Manugistics (Visibility) Many to Many Supply Network Optimization Freight Bill Audit/Payment Software: Order Management System: Oracle Other Systems Capabilities: Bar Coding EDI Handling Integrated TMS & WMS Internet Customer Access Real-time Track & Trace Demand & Supply Forecasting ERP Interfaces Internet Order Fulfillment Radio Frequency Devices XML Data Handling

Individual Provider Report ©Copyright 2008 Armstrong & Associates, Inc., Stoughton, WI 53589 USA Page 1 of 5 Provider Profile TRANSPORTATION MANAGEMENT SERVICES Transportation Planning Transportation Execution Freight Bill Payment: Transportation Services Carrier Mgmt and Contracting Contract File Maintenance Pre-Audit Air Freight Forwarding Rail Inbound Shipment Planning Exception Handling Post-Audit Consolidation/Deconsolidation Rail TOFC/COFC Outbound Shipment Planning Load Tendering Performed In-house Dedicated Contract Carriage Small Package End-to-end Load Matching Loss/Damage Claims Outsourced Freight Brokerage Specialized Mode Conversion/Optimization Tracking & Tracing Home Delivery Truckload (TL) Less than Truckload (LTL) Ocean Freight Forwarding WAREHOUSING & VALUE-ADDED SERVICES Warehouse/Distribution Center Facilities Mgmt Frozen Refrigerated Rail Siding

Value-Added Services Call Centers Kitting Pick/Pack Store Support/Direct Store Delivery Cross Docking Labeling Pool Distribution Sequencing/Metering Customization Lot Control Repair/Refurbish Specialty Packaging Inventory Control/Vendor Mgmt Merge in Transit Returnable Container Mgmt Sub Assembly KanBan Manufacturing Support Reverse Logistics OTHER 3PL SERVICES, SKILLS & HANDLING Other 3PL Services Consulting/Process Reengineering Installation/Removal Purchase Order Mgmt Quality Control Factoring/Financial Services Order Mgmt Project Logistics Union Services

Special Skills & Material Handling Bulk Commodities Hazardous Materials Food Grade/Sterile Temperature Controlled ISO Certified Certification Locations: Other Services: INTERNATIONAL SERVICES & PRIMARY AREAS SERVED International Services Areas Served AES/AMS/C-TPAT Duty Drawback Africa/Middle East Europe LCL Consolidation Foreign Trade Zone Asia/Pacific Latin/South America Customs Brokerage NVOCC Australia/New Zealand North America Export Crating Port Services CUSTOMERS TM-Transportation Mgmt WM-Whse/DC Mgmt VA-Value-Added DCC-Dedicated Contract Carriage Inte-Integrated TM&WM IM-Intermodal Intl-International SCM-Supply Chain Network Mgmt. Lead-Lead 3PL

A sample of 3PL clients. Services Rendered by CVRD Customer Industry Location TM WM VA DCC Inte IM Intl SCM Lead Other Ambev Beverages

ArcelorMittal Inox Brasil Metals São Paulo

Archer Daniels Midland Food Production São Paulo

BASF Chemicals

Camargo Corrêa Engineering, Construction Minas Gerais

Cargill Food Production São Paulo

Evonik Industries Chemicals São Paulo

Exxon Mobil Petroleum Refining Vitória

Ford Motor Motor Vehicles & Parts Vitória

Gerdau Ameristeel Metals São Paulo

Ipiranga Petrquimica Chemicals Rio Grande do Sul

Lafarge Building Materials, Glass Rio de Janeiro

COUNTRIES with OFFICES Countries served through owned offices or agents CVRD

Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America China Belgium United States Brazil Japan

EDITOR'S COMMENTS CVRD Logistics operations grow as a necessary part of its mining and rail activities. It is the world’s largest iron mover. Bulk operations are very good. Other operations are growing but have limited sophistication. In 2007, its subsidiary Docenave (now known as Log-In Logística Intermodal S.A.) along with its assets and employees related to Intermodal Services was separated from the structure of CVRD (refer to the Log-In profile for more information). Provider's Strengths Bulk commodities, rail transportation and mining. Provider's Weaknesses Lags in consumer products distribution. CASES & NEWS CVRD [To view in full html format, follow this link: http://www.3plogistics.com/CVRD_12-2002.htm] Vitoria/Tubarao - Site Visit December 4, 2002

CVRD invited us to Sao Paulo to talk to its major customers on December 4, 2002 about third-party logistics. Many of Brazil’s major exporters and importers attended to hear about CVRD’s expanding interest in logistics and initiation of 3PL services. Our visit to the Tubarao facility was a follow-up to see some of CVRD’s basic operations. Tubarao is a large port covering 18 square kilometers. It is the primary outlet for CVRD’s iron ore mining operations. 75 types of iron pellets are shipped from Tubarao to smelters around the world. Other bulk commodities shipped from and to the facilities include wood pulp, coffee, cement and granite outbound. Inbound commodities are petroleum products and fertilizer. CVRD has 3,600 employees at this location in addition to 6,000 contractor employees work here. Operations are heavily automated emphasizing tram car dumpers, conveyers and cranes A centralized computer control system provides efficient 24/7 coverage. CVRD maintains and replants the trees, bushes and other flora on this peninsula. As a result, the grounds are pleasant for a port facility. In addition, CVRD practices extensive dust control and the waters around the port look quite clean. The railroad has one meter gauge track and ties to the system throughout south-central Brazil, running inland to the Belo Horizonte mining area. (Throughout North America, Europe and Asia the standard gauge is 1.44 meters.) At this point some explanation is in order. CVRD owns four rail lines. These operations primarily connect the coast to the interior and operate North and South along the coast in the bottom half of Brazil. The Corajas Railroad runs into the Amazon basis. It was built by CVRD using its own funds. The other railroads were built by the government and CVRD. Until 1998 the Brazilian government owned CVRD. CVRD also has five steamships left from a fleet high of 22 a few years ago. The CVRD railroads are operated through a modern computerized traffic control center. Rail operations include passenger routes between Belo Horizonte and Vitoria. CVRD also maintains two berth container port operations (TVV) in Vitoria. This operation handles 165,000 TEUS a month and is at capacity. About 8,000 square meters of warehouse space is available and is nearly full of inbound cast ore materials. Most inbound products are high-value consumer goods. Most outbound is coffee and granite. The Vitoria port allows for a maximum vessel size of 3,500 TEUS. CVRD has plans for adding a large yard and distribution center a few kilometers from the port. This facility will be critical for CVRD’s 3PL development. CVRD controls the majority of shipping between Brazilian ports. CVRD does almost $3 billion a year in transportation. Given the infrastructure and profitability it has in Brazil, it has the resources to become a dominant 3PL. Guilherme Laager, the new VP in charge of logistics is assembling a group of young managers to help him change CVRD to become a modern integrated logistics manager and 3PL. We believe CVRD is well positioned to be one of the major 3PLs in South America. Growth for inbound consumer products should be substantial. To get a feel for the scope of this company visit www.cvrd.com.br. Brazilian Mining Titan Takes On Global Giants [By Antonio Regalado, The Wall Street Journal, April 25, 2008]

Vale in Rare Stumble As Earnings Drop; Push Into Canada

RIO DE JANEIRO – When Companhia Vale do Rio Doce arrived in the small Canadian mining town of Sudbury a year and a half ago, Mayor John Rodriguez recalls wondering: “Who are these Brazilians?” As the Rio-based mining giant muscles its way to the front of the global business stage, more and more people outside of Brazil are finding out. In 2006, Vale swallowed Sudbury’s biggest employer, nickel company Inco, for $1.78 billion – and set out on a campaign to win over the town’s skeptical residents. Vale is now the world’s second largest mining company, and the biggest maker of iron ore, a key ingredient in steel. Late Thursday, its push to diversify beyond iron ore came back to bite it. The company reported first-quarter net profit of $2.02 billion,

Individual Provider Report ©Copyright 2008 Armstrong & Associates, Inc., Stoughton, WI 53589 USA Page 3 of 5 Provider Profile down 8.8%, which it blamed in part on a drop in nickel prices and a weak U.S. dollar. (Under Brazilian accounting rules, the drop was a much steeper 56%.) Like many mining companies, Vale is vulnerable to gyrations in metals prices. But Goldman Sachs analyst Oscar Cabrera says Vale also struggled this quarter to boost production at the pace expected by the market, failing to produce as much iron ore and nickel as expected. Emerging-market companies such as Vale have been climbing the ranks of the world’s biggest and most successful firms in recent years. With China’s booming economy boosting demand for raw materials and other commodities, companies like Russian steelmaker Severstal and Brazilian pork and poultry processer Perdigão SA have prospered. Prices for Vale’s iron ore have risen by double-digit percentages in four of the past five years, and this year’s price hike of 65% is expected to add as much as $12 billion to annual revenue. Using their new financial clout, these once-obscure emerging-market companies have been buying up firms around the world. Last year, they struck $294 billion of such deals, up from $40 billion in 2003, according to research firm Dealogic. Brazilian steelmaker Gerdau SA bought Chapparal Steel Co. in the U.S. for $4.4 billion. Mexican cement maker Cemex SA took over Australian construction group Rinker Group Ltd. for $16.7 billion. Last month, India’s Tata Motors Ltd. bought the Jaguar and Land Rover luxury brands from Ford Motor Co. for $2.3 billion. According to Dealogic, Vale’s purchase of Inco is the largest-ever takeover by a Latin American company. In late March, Vale dropped its effort to buy Swiss rival Xstrata PLC for more than $80 billion after the parties failed to agree on takeover terms – a deal that could have made it the world’s No. 1 miner, overtaking the rival BHP Billiton. Vale has been growing at a torrid pace. Last year, it hired 9,281 new employees in Brazil, leaving total employment worldwide at 124,013. It mined enough iron ore to fill 50,000 Olympic-size pools, and generated $39.7 billion in revenue – nearly 10 times what it did in 2001. Between 2002 and 2006, Vale’s average annual return to stockholders – share appreciation plus dividends – was 54.6%, tops among the public companies with market capitalizations of more than $50 billion studied by Boston Consulting Group. América Móbil SAB, the cellphone operator owned by Mexican billionaire Carlos Slim was No. 2, followed by Apple Computer Inc. … Green Railroad project uses alternative materials for sleepers

Vale has abolished the use of native wood sleepers on its railroads. However, wood is still the best option for sleepers – a railway line is made up of sleepers and tracks which are laid over a bed made of crushed rock. The initiative encompasses social and environmental initiatives foreseen in the Green Railroad project which is a demonstration of the Company’s environmental sense of responsibility back by investments in various tests in search of the best innovations. On the Carajás EFC Railroad, more than 140 thousand steel sleepers have already been installed. Vale is the first private company in Brazil to use them on a large scale, a practice that has become common throughout Europe. Besides reducing environmental impacts; the steel sleeper contributes to operational safety and affords greater efficiency of the rail systems since they offer better performance. Steel has a longer useful life On the Vitória a Minas (EFVM) Railroad, approximately 2 million steel sleepers are being used. Thanks to this policy on the EFC and EFVM Railroads, more than 500 thousand trees have been saved. The implantation of the new sleeper is progressive and will eventually substitute 400 thousand wood units per year on the two railroads which is equivalent to preserving 100 thousand trees per year. Besides the steel sleeper model, Vale has been using for the last three years sleepers made of eucalyptus coming from reforestation projects on the Centro-Atlântica (FCA) Railroad where more than two million units have been installed. Eucalyptus is easy to cut, drill and handle since its basic physical characteristics are identical to other kinds wood sleepers.

Vale to bid for FNS [via website, October 2, 2007]

Companhia Vale do Rio Doce (Vale) announces that it will participate in an auction, for a sub-concession for commercial exploitation of a 720 km stretch of the North-South railroad (FNS). This stretch runs from Açailândia, State of Maranhão, to Palmas, State of Tocantins, in Brazil. The auction will take place on October 3rd, 2007, at 10:00am, Rio de Janeiro time, at the São Paulo Stock Exchange (Bovespa). Auction bids will be made through sealed envelopes, and the first minimum bid will be for R$1,478,205,000. The winner of the auction will be responsible for the operation, maintenance, control, improvements and adaptations of the stretch for 30 years. FNS is being implemented by VALEC - Engineering, Construction and Railroads S.A. (VALEC), a state- owned company run by the Ministry of Transportation, which is the current holder of the concession for building and operating the railroad. Since 1996, Vale has operated a 225km stretch of the FNS, linking the cities of Açailândia and Estreito in the State of Maranhão. At Estreito, FNS connects with the Carajás railroad (EFC), enabling access to the port of Itaqui, in São Luís, where Vale operates the Ponta da Madeira maritime terminal. This project will open up a new corridor for the transportation of general cargo, mainly for the export of soybeans, alcohol and sugar, produced in the Center-North region of Brazil. Vale's participation in the auction is consistent with the strategy of its logistics businesses. NYK signs carrier deal with CVRD [Marine Digest & Cargo Business News, May 2007]

Nippon Yusen KK (TSE: 9101) has signed a 20-year agreement with Brazilian resource giant Companhia Vale do Rio Doce SA to build one of the world's largest iron ore carriers and transport roughly 1.3mn tons of the material from Brazil to China each year starting in 2011. The deal, worth roughly 40bn yen, is the first such long-term pact between a Japanese shipping company and a resource producer. Nippon Yusen's longest agreement with a resource firm to date has been roughly five years. Nippon Yusen will build a massive ore carrier, capable of carrying 300,000 tons, for use on the shuttle route between three loading ports in Brazil and four ports in China, including Shanghai and Zhanjiang in Guangdong Province. The carrier, which will make 4-5 round trips each year, will be built by a Chinese joint venture of the Kawasaki Heavy Industries Ltd. (TSE:7012) group for around 10bn yen. The iron ore will mostly be supplied to smaller Chinese steel companies. By offering long-term agreements, CVRD aims to bolster its relationship with small and midsize steelmakers in China, said to number more than 800.

CVRD acquires AMCI Holdings Australia [via website, February 26, 2007]

Companhia Vale do Rio Doce (CVRD) announces that it entered into a purchase and sale agreement to acquire 100% of AMCI Holdings Individual Provider Report ©Copyright 2008 Armstrong & Associates, Inc., Stoughton, WI 53589 USA Page 4 of 5 Provider Profile Australia Pty (AMCI HA) for AUD 835 million. AMCI HA is a privately held company headquartered in Brisbane, state of Queensland, Australia, which operates and controls coal assets through unincorporated joint ventures. CVRD's stake is equivalent to a nominal production capacity of 8.0 million tons of coal (predominately coaking coal) and reserves of 103 million tons. AMCI HA had net debt of AUD 157 million as of November 30, 2006. Located in two of the best Australian coal producing regions - Hunter Valley, state of New South Wales, and Bowen Basin, state of Queensland - AMCI HA's main coal assets are the following:

(a) Integra Coal Joint Venture (Integra Coal), Hunter Valley, open cast and underground mines. AMCI HA owns 61% of Integra.

(b) Carborough Downs Joint Venture (Carborough Downs), Central Queensland, underground mine ramping up to full capacity in 2009/2010. AMCI HA owns 80% of Carborough Downs.

(c) Isaac Plains Joint Venture (Isaac Plains), Central Queensland, open cast mine ramping up to full capacity by 2009/2010. AMCI HA owns 50% of Isaac Plains.

(d) Broadlea Joint Venture, Central Queensland, open cast mine, which is 100% owned by AMCI HA.

(e) An extensive and highly prospective coal exploration portfolio that is also included with this acquisition - potential for 3.0 billion tons of non- audited mineralized material.

Investment in the coal business is an important part of CVRD's growth strategy. Prior to this acquisition, we had already have minority stakes in two Chinese companies - Shandong Yankuang International Coking Co. and Henan Longyu Energy Resources Ltd. - and we are presently concluding a feasibility study to develop a large coal deposit in Mozambique, Moatize, and a pre-feasibility study of the Belvedere deposit in the Bowen Basin, State of Queensland, Australia. The acquisition of AMCI HA creates a strong growth platform to develop CVRD's coal business and contributes to diversify our product portfolio, providing simultaneously geographic diversification into an investment-grade and one of the richest natural resources countries in the world, Australia. It allows access to operating assets, with logistics infrastructure and high growth potential. Jointly with world-class mining assets, the acquisition of AMCI HA brings a highly skilled and seasoned team in coal project development, operations and marketing, which will be important to support our expansion.

CVRD files initial public offering of Log-In Logística [via website, February 16, 2007]

Companhia Vale do Rio Doce (CVRD) hereby announces that it will file an application with the Brazilian Securities Commission (CVM) for the registration of a public offer for the primary and secondary distribution of the common shares of its subsidiary Log-In Logística Intermodal S/A (Log-In Logística), as follows:

a) The primary and secondary public distribution on the Brazilian over-the-counter market will be coordinated by Banco UBS Pactual S.A., pursuant to the procedures set out under CVM Instruction Nº 400, of December 29, 2003;

b) The secondary public offering of shares of Log-In Logística will be carried out by CVRD;

c) Efforts will also be made to place the shares outside Brazil, through transactions exempt from registration in accordance with the terms of the US Securities Act of 1933, as amended (Securities Act) through investment mechanisms in compliance with Brazilian laws and regulations to certain qualified institutional buyers - as defined under Rule 144A of the US Securities and Exchange Commission (SEC) - and to investors outside the US and Brazil that are not US persons - as defined in the SEC Regulation S - through investment mechanisms in compliance with Brazilian laws and regulations, respecting the applicable law in the country in which each investor is domiciled.

Company Name Julio Simões Transportes e Serviços Ltda. Address: Av. Saraiva, 400 - Brás Cubas - Mogi das Cruzes, São Paulo, Brazil Phone Number: 55 11 4795-7000 Email Address: [email protected] Fax Number: 55 11 4727 2091 Website Address: www.juliosimoes.com.br

COMPANY BACKGROUND Subsidiaries or Related Companies Parent Corporation: Grupo Julio Simões Original Veículos Ltda. Year Started in Logistics: 1956 Asset Focus: N Leste Veículos Ltda. Market Area: S. America (A = Asset Based, N = Non Asset Based) JS Air Taxi Founding Business: Cargo Transportation Transcel, Stralu OVERALL CAPABILITY Overall Capability of Provider: Capable Brazilian transporation 3PL. KEY PERSONNEL Julio Simões CEO Irece Andrade Sales Director Mauro Postali CFO Glauco Mariano Logistics Mgr. Glauco Mariano CIO

FINANCIAL INFORMATION (FY 2007) Total Logistics Revenue ($Millions): 538 Ticker Symbol Total Net Logistics Revenue ($Millions): 17 * Exchange: Total Logistics Employees (Including Drivers): 11,000 Total Long-Term Contracts Held: 250 Average Length of Logistics Contract (Years): 11 * (Net Logistics Revenue is net of pass-through revenues for purchased transportation.) ASSETS Dedicated Contract Carriage Power Units/Trucks: Total Transportation Assets: Total Warehouses & Distribution Centers: Total Tractors: 545 Total Tractors: 545 Total Warehouses/DC's: Total Trucks: 163 Total Trucks: 163 Total Square Footage: (Million) Total Other: Total Trailers: Total with Rail Doors: Dedicated Contract Carriage Trailers: Total Aircraft: 1 Avg Truck Doors per DC: Total Dry Van: Total Ocean: Asset Ownership v.s. Leased: Total Reefers: Total Other: Transportation Equipment: Owned Total Flatbeds: Warehouses/DC's: Total Tankers: Total Other: FREIGHT FORWARDING/NVOCC VOLUMES Total Annual TEUs: Total Annual Airfreight Tonnes: Total Licensed Customs Brokers: MARKETS (For functional specializations, see "Customers" section.) Elements Industrial

INFORMATION SYSTEMS Overall Information Systems Rating: C (E=Excellent, G=Good, C=Capable/Adequate, and I=Inadequate) Software Type: Software Vendor/Brand: Transportation Management System (TMS): E-Cargo TMS Optimization Routines: Transportation Planning and Optimization: End-to-end Matching/Continuous Moves Warehouse Management System (WMS): Mode Conversion/Optimization Network Modeling/Site Location: Many to Many Supply Network Optimization Freight Bill Audit/Payment Software: Order Management System: Other Systems Capabilities: Bar Coding EDI Handling Integrated TMS & WMS Internet Customer Access Real-time Track & Trace Demand & Supply Forecasting ERP Interfaces Internet Order Fulfillment Radio Frequency Devices XML Data Handling

Individual Provider Report ©Copyright 2008 Armstrong & Associates, Inc., Stoughton, WI 53589 USA Page 1 of 3 Provider Profile TRANSPORTATION MANAGEMENT SERVICES Transportation Planning Transportation Execution Freight Bill Payment: Transportation Services Carrier Mgmt and Contracting Contract File Maintenance Pre-Audit Air Freight Forwarding Rail Inbound Shipment Planning Exception Handling Post-Audit Consolidation/Deconsolidation Rail TOFC/COFC Outbound Shipment Planning Load Tendering Performed In-house Dedicated Contract Carriage Small Package End-to-end Load Matching Loss/Damage Claims Outsourced Freight Brokerage Specialized Mode Conversion/Optimization Tracking & Tracing Home Delivery Truckload (TL) Less than Truckload (LTL) Ocean Freight Forwarding WAREHOUSING & VALUE-ADDED SERVICES Warehouse/Distribution Center Facilities Mgmt Frozen Refrigerated Rail Siding

Special Skills & Material Handling Bulk Commodities Hazardous Materials Food Grade/Sterile Temperature Controlled ISO Certified Certification Locations: All Other Services: INTERNATIONAL SERVICES & PRIMARY AREAS SERVED International Services Areas Served AES/AMS/C-TPAT Duty Drawback Africa/Middle East Europe LCL Consolidation Foreign Trade Zone Asia/Pacific Latin/South America Customs Brokerage NVOCC Australia/New Zealand North America Export Crating Port Services CUSTOMERS TM-Transportation Mgmt WM-Whse/DC Mgmt VA-Value-Added DCC-Dedicated Contract Carriage Inte-Integrated TM&WM IM-Intermodal Intl-International SCM-Supply Chain Network Mgmt. Lead-Lead 3PL

A sample of 3PL clients. Services Rendered by Julio Simoes Customer Industry Location TM WM VA DCC Inte IM Intl SCM Lead Other Braskem S.A. Chemicals Alagoas, Bahia

Cebrace Vidros Building Materials, Glass Argentina, São Paulo

Comlurb Cia. Mun Limpeza Urb Waste Management Rio de Janeiro

Prysmian Industrial & Farm Equipment Argentina, São Paulo

Veracel Cel S.A. Forest & Paper Products Espírito Santo

COUNTRIES with OFFICES Countries served through owned offices or agents Julio Simoes

Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America Brazil

EDITOR'S COMMENTS Julio Simões provides cargo transportation, passenger transporation by car and bus and/or they rent these vehicles, indusrial vehicles, and machinery. Other services include street cleaning and waste disposal. Provider's Strengths Regional Transportation. Provider's Weaknesses Limited services and scope. CASES & NEWS

Company Name Log-In Logística Intermodal S.A. Address: Praia de Botafogo, 501, Torre Corcovado, Sala 703, Rio de Janeiro, CEP: 22250-040 Brazil Phone Number: 55-21-2111-6500 Email Address: Fax Number: 55-21-2111-6657 Website Address: www.loginlogistica.com.br

COMPANY BACKGROUND Subsidiaries or Related Companies Parent Corporation: Companhia Vale do Rio Doce (CVRD, Vale) Year Started in Logistics: 1962 Asset Focus: A Navegação Vale do Rio Doce S.A. (Docenave) Market Area: Brazil (A = Asset Based, N = Non Asset Based) Terminal de Vila Velha (TVV) Founding Business: Sea Transport/Harbor Support PSC Terminais Intermodais OVERALL CAPABILITY Overall Capability of Provider: Brazilian intermodal services provider spun off of former parent - Companhia Vale do Rio Doce. KEY PERSONNEL Mauro Oliveira Dias CEO & IR Dir. Roberta Brandão Marketing & Communications Dir. Leonardo Pimenta Gadelh CFO Claudio Loureiro de Souza Business Development Dir.

FINANCIAL INFORMATION (FY 2007) Total Logistics Revenue ($Millions): 184 Ticker Symbol LOGN3 Total Net Logistics Revenue ($Millions): 54 * Exchange: Bovespa Total Logistics Employees (Including Drivers): 750 Total Long-Term Contracts Held: Average Length of Logistics Contract (Years): * (Net Logistics Revenue is net of pass-through revenues for purchased transportation.) ASSETS Dedicated Contract Carriage Power Units/Trucks: Total Transportation Assets: Total Warehouses & Distribution Centers: Total Tractors: Total Tractors: Total Warehouses/DC's: Total Trucks: Total Trucks: Total Square Footage: (Million) Total Other: Total Trailers: Total with Rail Doors: Dedicated Contract Carriage Trailers: Total Aircraft: Avg Truck Doors per DC: Total Dry Van: Total Ocean: 7 Asset Ownership v.s. Leased: Total Reefers: Total Other: Transportation Equipment: Owned Total Flatbeds: Warehouses/DC's: Total Tankers: Total Other: FREIGHT FORWARDING/NVOCC VOLUMES Total Annual TEUs: Total Annual Airfreight Tonnes: Total Licensed Customs Brokers: MARKETS (For functional specializations, see "Customers" section.) Elements

INFORMATION SYSTEMS Overall Information Systems Rating: C (E=Excellent, G=Good, C=Capable/Adequate, and I=Inadequate) Software Type: Software Vendor/Brand: Transportation Management System (TMS): Proprietary TMS Optimization Routines: Transportation Planning and Optimization: End-to-end Matching/Continuous Moves Warehouse Management System (WMS): Mode Conversion/Optimization Network Modeling/Site Location: Many to Many Supply Network Optimization Freight Bill Audit/Payment Software: Order Management System: Other Systems Capabilities: Bar Coding EDI Handling Integrated TMS & WMS Internet Customer Access Real-time Track & Trace Demand & Supply Forecasting ERP Interfaces Internet Order Fulfillment Radio Frequency Devices XML Data Handling

A sample of 3PL clients. Services Rendered by Log-In Customer Industry Location TM WM VA DCC Inte IM Intl SCM Lead Other Alumina do Brasil S.A. Metals Brazil

COUNTRIES with OFFICES Countries served through owned offices or agents Log-In

Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America Argentina Brazil

EDITOR'S COMMENTS Log-In was established and originally named Docenave in 1962 by Companhia Vale do Rio Doce (CVRD). Docenave was changed to Log-In in 2007 when the assets and employees related to Intermodal Services were separated from the structure of CVRD. Log-In, with its subsidiaries, provides port handling and door-to-door container transportation by sea or rail, complemented by short distance road transportation and container storage. Its customers are in the food/beverage, consumer goods, automotive, industrial and electronics industries. Log-In currently has 13 offices throughout Brazil and an office in Argentina. It plans to expand its coastal shipping operations by adding five new vessels by 2013, therefore, increasing its coastal shipping capacity by 300%. Provider's Strengths Coastal shipping. Provider's Weaknesses

CASES & NEWS Log-In Logistica Intermodal S.A Reports Earnings Results for the Second Quarter of 2008 [BusinessWeek, August 6, 2008]

Log-In Logistica Intermodal S. A reported earnings results for the second quarter of 2008. For the quarter, the company posted net profits of BRL 13.2 million, compared to losses of BRL 7.8 million in the same period last year. Last year's second quarter results were affected by the company's IPO process which led to extra expenses. Excluding these expenses, the company would have registered a BRL 7.1 million profit. Net revenues of BRL 99.1 million, up 8.9% over the same period last year. Ebitda was BRL 22.4 million, up 17.9%.

Log-In Secures 20 Year Bauxite Deal; Announces Earnings Results for the First Quarter of 2008; Plans to Add A New Service Between Santos and Manaus [BusinessWeek, May 9, 2008]

Log-In has won a contract worth $1 billion over the next 20 years to ship bauxite ore for Alunorte in the north of the country. The company termed the long-term contract the greatest in coastal shipping history. Under the take or pay deal, Log-In will ship 6 million tonnes of the ore each year between Alunorte's Mineração Rio do Norte mine, close to the Amazon port of Trombetas, and Vila do Conde. Two 80,000 dwt bulk carriers will be built at a Brazilian shipyard at a cost of $165 million to operate on the route from 2010 onwards, the company said. The company started construction of the first of five 2,700 teu container vessels at the Rio de Janeiro-based EISA shipyard in March. The company posted a sharp increase in net income in the first quarter of 2008 to BRL 36.8 million ($21.9 million), compared with BRL 3.4 million in the previous year, largely the result of BRL 22.8 million tax credits. The company plans to add a new service between Santos and Manaus. The new Amazonas service linking Santos and Manaus will begin in the second quarter of this year.

Company Name: Penske Logistics do Brasil Ltda Address: Av. Fernando Cerqueira Cesar Coimbra, 398, Alphaville - Barueri - SP CEP 06465-090 Phone Number: +55 (11) 3306-0062 Email Address: [email protected] Fax Number: +55 (11) 3306-0067 Website Address: www.penske.com.br COMPANY BACKGROUND Subsidiaries or Related Companies: Parent Corporation: Penske Logistics AssetFocus: A, N Penske Truck Leasing Year Started in Logistics: 1998 (A = Asset Based, N = Non Asset Based) Market Area: South America Founding Business: Trading

KEY PERSONNEL

CEO: Gary S. Franz CIO: Marketing: Paulo Augusto Sarti CFO: Paulo H.G. Monteiro Logistics: Mohamed I.A. Abou Nassif

FINANCIAL INFORMATION Revenues may be company provided or A&A estimates. Total Logistics Revenue ($Millions): 102.00 Ticker Symbol: Total Net Logistics Revenue ($Millions): 55.00* Exchange: Total Logistics Employees (Including Drivers): 2,201 Total Long-Term Contracts Held: 14 Average Length of Logistics Contract (Years): 4 * Net Logistics Revenue is net of pass-through revenues for purchased tranportation.

ASSETS Dedicated Contract Carriage Power Units/Trucks: Total Transportation Assets: Total Warehouses & Distribution Centers: Total Tractors: Total Tractors: Total Warehouses/DC's: 18 Total Trucks: Total Trucks: Total Square Footage: 3.60 (Million) Total Others: Total Trailers: Total with Rail Doors: Dedicated Contract Carriage Trailers: Total Aircraft: Avg Truck Doors per DC: 20 Total Dry Van: Total Ocean: Total Flatbeds: Total Other: Asset Ownership: Owned Leased Both Total Tankers: Transportation Equipment: Total Other: Warehouses/DC's:

FREIGHT FORWARDING/NVOCC VOLUMES Total Annual TEUs: Total Annual Airfreight Tonnes:

INFORMATION SYSTEMS

Software Type: Software Vendor/Brand: TMS Optimization Routines: Transportation Management System (TMS) Proprietary End-to-end Matching / Continuous Moves Transportation Planning and Optimization Mode Conversion / Optimization Warehouse Management System (WMS) Proprietary Many to Many Supply Network Optimization Network Modeling / Site Location Freight Bill Audit / Payment Software Proprietary Order Management System

Other Systems Capabilities: Bar Coding EDI Handling Integrated TMS & WMS Radio Frequency Devices XML Data Handling Demand & Supply Forecasting ERP Interfaces Internet Customer Access Real-Time Track & Trace

TRANSPORTATION MANAGEMENT SERVICES

Transportation Planning: Transportation Execution: Freight Bill Payment: Transportation Services: Carrier Mgmt & Contracting Contract File Maintenance Pre-Audit Air Freight Forwarding Rail Inbound Shipment Planning Exception Handling Post-Audit Freight Brokerage Rail TOFC/COFC Outbound Shipment Planning Load Tendering Performed In-house Dedicated Contract Carriage Small Package End-to-End Load Matching Loss/Damage Claims Outsourced Consolidation/Deconsolidation Specialized Mode Conversion/Optimization Tracking & Tracing Home Delivery Truckload (TL) Less than Truckload (LTL) Ocean Freight Forwarding

WAREHOUSING & VALUE-ADDED SERVICES

Warehouse/Distribution Center: Facilities Mgmt Frozen Refrigerated Rail Siding Value-Added Services: Call Centers Kitting Pick/Pack Store Support/Direct Store Delivery Cross Docking Labeling Pool Distribution Sequencing/Metering Customization Lot Control Repair/Refurbish Specialty Packaging Inventory Control/Vendor Mgmt Merge in Transit Returnable Container Mgmt Sub Assembly KanBan Manufacturing Support Reverse Logistics

OTHER 3PL SERVICES, SKILLS AND HANDLING

Other 3PL Services: Consulting/Process Reengineering Installation/Removal Purchase Order Mgmt Quality Control Factoring/Financial Services Order Mgmt Project Logistics Union Services

Special Skills & Material Handling: Bulk Commodities Hazardous Materials Food Grade/Sterile Temperature Controlled ISO Certified / Locations: Over 50 locations in the U.S., Mexico and Brazil.

INTERNATIONAL SERVICES & PRIMARY AREAS SERVED International Services: Areas Served: LCL Consolidation Foreign Trade Zone Africa/Middle East Europe Customs Brokerage NVOCC Asia/Pacific Latin/South America Duty Drawback AES/AMS/C-TPAT Australia/New Zealand North America

CUSTOMERS TM-Transportation Mgmt; WM-Whse/DC Mgmt; VA-Value-Added; DCC-Dedicated Contract Carriage Inte-Integrated TM&WM; IM-Intermodal; Intl-International; SCM-Supply Chain Network Mgmt; Lead-Lead 3PL A sample of 3PL clients Services Rendered by: Penske Logistics do Brasil Ltda Customer: Industry: Location: TM WM VA DCC Inte IM Intl SCM Lead Other Samsung Electronics Electronics, Electrical Equipment Sao Paulo, Brazil

Ford Motor Motor Vehicles & Parts Brazil

General Motors Motor Vehicles & Parts Brazil

Hewlett-Packard Computers, Office Equipment Brazil

Danone Food Consumer Products Brazil

COUNTRIES with OFFICES Countries served through owned offices or agents.

Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America Egypt, Nigeria Bangladesh, China, Australia, New Zealand Germany, Ireland, Canada, Mexico, United Argentina, Brazil, Chile, India, Indonesia, Japan, Italy, Luxembourg, States Venezuela Malaysia, Myanmar, Netherlands, Norway, Philippines, Singapore, Poland, Portugal, South Korea, Taiwan, Romania, Russia, Thailand, Vietnam Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom

CASES & NEWS Cases and news may have been translated using translation software.

Penske Logistics Leverages Local Expertise in Expanding Brazilian Operations Sao Paulo, Brazil Site Visits January 15 & 16, 2007

Key Personnel: Joseph Gallick, Senior Vice President of Sales Gary Franz, Managing Director - South America Region Mohamed Nassif, Operations & IT Director - South America Region Paulo Monteiro, Finance Director - South America Region Paulo Sarti, Director of Sales - South America Region

A myriad of taxes, import/export regulations, high interest rates, infrastructure and geographic constraints, language barriers, and security issues make Brazil a challenging country for supply chain managers. These challenges often make it imperative for global companies distributing products in Brazil to have a strong logistics partner. To meet the needs of its global customer Ford Motor, Penske Logistics established its Brazilian operations in 1998 by investing in a joint venture with Cotia Trading company. In August of 2005 Penske Logistics bought out the remaining interest in Cotia Penske Logistics and formed a wholly-owned company. In a market that is just starting to embrace logistics outsourcing, Penske has leveraged its local staff with Brazilian market expertise to grow revenues from $25 million in 1998 to $65 million in 2006. It currently has an approximate staff of 1,200 associates and 1.8 million square feet of warehouse space primarily serving the needs of 14 major customers. Top Brazilian customers include: Ford, HP, Ingersoll Rand, General Motors, Lexmark, Officer, Samsung, Sony, Terra, and Tyco. A good example illustrating Brazil's logistics challenges are Samsung's outbound distribution operations. To meet the demands of the Brazilian market, Samsung has built manufacturing plants in Campinas (just outside of Sao Paulo) and in the north central city of Manaus. Manaus is a targeted growth city developed out of the Amazon rainforest by the Brazilian government. Because of its location and the need to transport products via the Amazon river before being transloaded into trucks, the transit time from Manaus to Sao Paulo (Brazil's largest city) is 12 days.

Sao Paulo Samsung Warehouse

Penske manages the majority of Samsung's Brazilian distribution operations including a 120,000 square foot warehouse adjacent to its headquarters in Barueri- Sao Paulo. Approximately 1,200 stock keeping units (SKUs) are maintained in on-hand inventory for same-day order fulfillment. Security is very tight since high- value products stored include: large flat-panel televisions, computer monitors and appliances. Approximately 30,000 pieces are received from Manaus and 100,000 pieces are received from overseas operations each year. Penske's systems automatically schedule receiving dock doors. Inbound product quantities are verified, barcoded and if necessary serial numbers are scanned in by Penske personnel prior to being directed for putaway by Penske's warehouse management system (WMS). Penske's facility is very modern and all activities are driven by its WMS via radio frequency (RF) devices. Product is stored in five position racking with the fastest moving items stored on the floor closer to the outbound shipping doors. Picking is RF driven and is typically done in waves, routes, or by final customer. Penske performs continuous cycle counting and reconciles Samsung's inventory each day. Inventory accuracy has been running at 99.7% and inventory turns 1.5 times per month. During Samsung's peak season from August through December, approximately 400 outbound orders are filled per day. Outbound transportation is managed using Penske's proprietary "e-cargo" transportation management system (TMS). In addition to warehousing and distribution, Penske is also performing repair and refurbishment work for Samsung. This includes performing returns processing, product quality checks and basic refurbishment and repackaging. Samsung's Brazilian customers include retailers: Casas Bahia, Carrefour, Pão de Açúcar, and Wal-Mart.

Sao Paulo Multi-Client Warehouse (MCW)

A short drive from Penske Logistics Brazilian headquarters, is its very secure 250,000 square foot multi-client warehouse. Having an approximate workforce of 350 the MCW utilizes Penske's proprietary TMS and WMS and with integrated RF interfaces to manage logistics functions. Penske runs a sizable aftermarket spare/service parts kitting and fulfillment operation for GM's Brazilian car dealer distribution network. The operation is staffed by 150 workers in three shifts occupying 60,000 square feet of space. Each month approximately 2.1 million parts are picked, packed and shipped to dealers and GM's regional parts distribution centers. Many of the shipments require significant transportation management with same-day or specific delivery window requirements. Lexmark is another large MCW customer and has grown with Penske since its operation startup in 2004. It occupies 53,800 square feet. A staff of 45 associates are responsible for receiving inbound product, performing product customization, warehouse management, outbound distribution, and reverse logistics services. An example of one value-added service being provided is special ink jet labeling for the Brazilian market. Penske manages approximately 3,000 outbound loads per month for Lexmark. Sony Style's Brazilian business to consumer internet order fulfillment operation operates in a fenced off 35,000 square foot section of the warehouse. Approximately, 250 orders for everything from large screen high definition televisions to accessories are processed each month. Sony's enterprise resource

planning (ERP) system has been integrated with Penske's WMS to efficiently manage warehouse activities. In addition to order fulfillment, Penske provides Sony with full outbound transportation management services. Approximately half of the outbound orders are LTL (less than truckload) and half are FTL (full truckload). Penske is a primary 3PL for Brazilian headquartered Officer Distribuidora a wholesaler of IT equipment and software. Officer has a branch office located in the MCW and is directly integrated with Penske's WMS for order picking and outbound fulfillment. The final MCW customer operation we viewed was for Terra, an online business selling caller identification equipment, modems, cable television converters, and other electronics. It occupies approximately 30,000 square feet of the MCW and utilizes Penske's "Logix" ERP system for order fulfillment and customer invoicing.

Ford Parts Distribution Center Operations

Penske Logistics manages two aftermarket automotive parts distribution centers (PDCs) for Ford in Brazil; one is in the Northeast and the second one which we toured is in Sao Paulo. With an approximate dealer network of 500, both operations require top-notch integrated value-added warehousing and transportation management capabilities. The 387,000 square foot dedicated Sao Paulo Ford PDC began operations in 1999 and is staffed by 220 Penske associates. Inbound parts are received from Ford's manufacturing plants and suppliers. Inventory consists of approximately 47,000 SKUs and 10 million items stored in over 81,000 warehouse locations. Penske's key performance indicators include a minimum order fill rate of 97% and 99.6% inventory accuracy. Penske has been running at 99.9% inventory accuracy. To increase operational efficiency, Penske developed four 12 meter high vertical carousel sorters for picking fast moving items. Each individual sorter contains 82 shelves and can quickly process hundreds of orders at the same time. Outbound parts orders are received from Ford's dealer network and Penske picks, packs, and ships the orders. Delivery requirements are stringent. Orders received by 2 P.M. must be shipped that day and those received by 6 P.M. for Sao Paulo dealers must be delivered by Penske that evening. All other orders must be delivered within 48 hours of order receipt.

Transportation Management System - "e-cargo"

To tackle the distinct needs of managing transportation in Brazil, Penske Logistics uses its proprietary transportation management system (TMS) dubbed "e- cargo". While Penske uses i2 for TMS in the U.S., e-cargo has been developed to handle four federal Brazilian taxes, individual state taxes, and a tax imposed on each transportation invoice. e-cargo runs as an ASP web application via sequel server (SQL) on an Oracle database. Overall transportation execution functionality is very robust. Orders are received from customers via EDI interfaces directly into e-cargo. The system in-turn facilities optimal routing, carrier selection, rates shipments and drives picking on the warehouse floor. e-cargo has templates for automatically preparing bills of ladings. Once shipments are in transit, e-cargo offers solid internet tracking and tracing capabilities via communications with carrier global positioning systems (GPS) or through "check" calls to Penske's central transportation management call center. This shipment visibility provides Penske with vital information to insure high-value loads are secure.

Summary

By leveraging its local expertise and inherent skills as an automotive logistics leader, Penske is growing its presence amongst high-tech industry customers in Brazil. We anticipate that Penske Logistics will continue its global expansion by developing solid integrated warehousing and transportation management operations in high-tech and other select verticals.

Company Name Rapidão Cometa Address: Av. Mal. Mascarenhas de Morais, 2525, Imbiribeira, Recife-PE - CEP 51150-001, Brazil Phone Number: 55 (81) 3464-5288 Email Address: [email protected] Fax Number: 55 (81) 3471-3111 Website Address: www.rapidaocometa.com.br

COMPANY BACKGROUND Subsidiaries or Related Companies Parent Corporation: Year Started in Logistics: 1997 Asset Focus: A Market Area: Brazil (A = Asset Based, N = Non Asset Based) Founding Business: Transportation OVERALL CAPABILITY Overall Capability of Provider: Major Brazilian transport and logistics company. KEY PERSONNEL Américo Pereira CEO Américo Pereira Filho Sales Director Rafael Mansilha CTI Celso Queiroz Logistics Director Carlos Frederico Maia Systems Analyst

FINANCIAL INFORMATION (FY 2007) Total Logistics Revenue ($Millions): 317 Ticker Symbol Total Net Logistics Revenue ($Millions): 317 * Exchange: Total Logistics Employees (Including Drivers): 2,000 Total Long-Term Contracts Held: Average Length of Logistics Contract (Years): * (Net Logistics Revenue is net of pass-through revenues for purchased transportation.) ASSETS Dedicated Contract Carriage Power Units/Trucks: Total Transportation Assets: Total Warehouses & Distribution Centers: Total Tractors: Total Tractors: 49 Total Warehouses/DC's: 59 Total Trucks: Total Trucks: 267 Total Square Footage: 6.5 (Million) Total Other: Total Trailers: 134 Total with Rail Doors: Dedicated Contract Carriage Trailers: Total Aircraft: Avg Truck Doors per DC: 30 Total Dry Van: Total Ocean: Asset Ownership v.s. Leased: Total Reefers: Total Other: 86 Transportation Equipment: About 50/50 Total Flatbeds: Warehouses/DC's: About 50/50 Total Tankers: Total Other: FREIGHT FORWARDING/NVOCC VOLUMES Total Annual TEUs: Total Annual Airfreight Tonnes: Total Licensed Customs Brokers: MARKETS (For functional specializations, see "Customers" section.) Automotive Consumer Goods Elements Technological

INFORMATION SYSTEMS Overall Information Systems Rating: C (E=Excellent, G=Good, C=Capable/Adequate, and I=Inadequate) Software Type: Software Vendor/Brand: Transportation Management System (TMS): Proprietary TMS Optimization Routines: Transportation Planning and Optimization: Proprietary End-to-end Matching/Continuous Moves Warehouse Management System (WMS): Infor Mode Conversion/Optimization Network Modeling/Site Location: Many to Many Supply Network Optimization Freight Bill Audit/Payment Software: Proprietary Order Management System: Oracle Other Systems Capabilities: Bar Coding EDI Handling Integrated TMS & WMS Internet Customer Access Real-time Track & Trace Demand & Supply Forecasting ERP Interfaces Internet Order Fulfillment Radio Frequency Devices XML Data Handling

Special Skills & Material Handling Bulk Commodities Hazardous Materials Food Grade/Sterile Temperature Controlled ISO Certified Certification Locations: Brazil Other Services: INTERNATIONAL SERVICES & PRIMARY AREAS SERVED International Services Areas Served AES/AMS/C-TPAT Duty Drawback Africa/Middle East Europe LCL Consolidation Foreign Trade Zone Asia/Pacific Latin/South America Customs Brokerage NVOCC Australia/New Zealand North America Export Crating Port Services CUSTOMERS TM-Transportation Mgmt WM-Whse/DC Mgmt VA-Value-Added DCC-Dedicated Contract Carriage Inte-Integrated TM&WM IM-Intermodal Intl-International SCM-Supply Chain Network Mgmt. Lead-Lead 3PL

A sample of 3PL clients. Services Rendered by Rapidao Cometa Customer Industry Location TM WM VA DCC Inte IM Intl SCM Lead Other CVRD Mining, Crude-Oil Production Brazil

Herbalife Household & Personal Products Brazil

Natura Household & Personal Products Brazil

Scania Motor Vehicles & Parts Brazil

Telemar Telecommunications Brazil

COUNTRIES with OFFICES Countries served through owned offices or agents Rapidao Cometa

Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America Brazil

EDITOR'S COMMENTS Rapidão Cometa is the second largest domestic transportation company in Brazil. It covers 16 Brazilian states specializing in road transportation, specialized pharmaceutical services, and home delivery. Rapidão Cometa has more than 8,000 active customers and more than 4 million deliveries are made throughout Brazil each year. Provider's Strengths Domestic transportation. Provider's Weaknesses

CASES & NEWS DETERMINANTS OF CUSTOMER PARTNERING BEHAVIOR IN LOGISTICS OUTSOURCING RELATIONSHIPS: A RELATIONSHIP MARKETING PERSPECTIVE [By Adriana Rossiter Hofer, April 24, 2007]

… Increasing customer trust in a 3PL…It is crucial for a 3PL representative to make an effort to develop personal and interactive relationships with its customers. Personal relationships may be emphasized in many areas of a 3PL’s activities, including those that deal with customer issues or complaints (e.g., the marketing department and call-center). Several semi-structured interviews were conducted with Rapidão Cometa’s customers. During the interviews, it was emphasized how important the weekly visits from Rapidão Cometa’s representatives were for the customers. The customers argued that Rapidão Cometa was responsive when problems arose, such as late shipments. They pointed out that it was important to know that someone from Rapidão Cometa was paying attention to their problems and working to solve them. Aside from working on interpersonal interactions with customers, one way to increase a customer’s perception of a 3PL’s benevolence is by investing in the relationship. It was shown that there is a positive relationship between 3PL transaction-specific investments and 3PL benevolence. Transaction specific investments are a demonstration of concern and care for the relationship. Therefore, if a 3PL invests in the relationship with a customer, the customer will not only perceive itself to be dependent on the 3PL, but will also trust the 3PL. An important means of increasing a customer’s perception of a 3PL’s credibility is by increasing the 3PL’s reputation. A positive relationship was found between a 3PL’s reputation and its customer’s perception of the 3PL’s credibility. Reputational advertising may help here. In addition, reputation may spread through word-of-mouth. One of the customers interviewed said that his company chose Rapidão Cometa based on conversations with managers from other firms who already worked with Rapidão Cometa. Finally, it is crucial that a customer is satisfied with the services provided. The model results show that satisfaction with outcomes of the relationship build trust that in turn shapes a customer’s partnering behavior with a 3PL. During the interviews, on-time performance, freight visibility through a satellite tracking system, and cargo integrity (i.e., absence of damage and spoilage) were clearly the main factors that customers used to evaluate Rapidão Cometa’s performance. …

Company Name Tegma Gestão Logística S.A. Address: Av. Nicola Demarchi, n° 2.000, São Bernardo do Campo - São Paulo, 09820-655 Brazil Phone Number: 55 11 4346-2532 Email Address: Fax Number: 55 11 4346-2533 Website Address: www.tegma.com.br

COMPANY BACKGROUND Subsidiaries or Related Companies Parent Corporation: P.D.I. Ltda., BONIAMAZON Year Started in Logistics: 1998 Asset Focus: N Coimex Logística Integrada (C.L.I.) Market Area: Brazil (A = Asset Based, N = Non Asset Based) Nortev, Tegmax, TGI, CATLOG Founding Business: New Vehicles Transportation Tegma Cargas Expeciais Ltda., Tegma Venezuela OVERALL CAPABILITY Overall Capability of Provider: Major Brazilian automobile importer/exporter and distributor. KEY PERSONNEL Gennaro Oddone CEO & IRO Roberto Ferreira Santos Sales Dir.

FINANCIAL INFORMATION (FY 2007) Total Logistics Revenue ($Millions): 405 Ticker Symbol TGMA3 Total Net Logistics Revenue ($Millions): 69 * Exchange: Bovespa Total Logistics Employees (Including Drivers): 2,817 Total Long-Term Contracts Held: Average Length of Logistics Contract (Years): 3-5 * (Net Logistics Revenue is net of pass-through revenues for purchased transportation.) ASSETS Dedicated Contract Carriage Power Units/Trucks: Total Transportation Assets: Total Warehouses & Distribution Centers: Total Tractors: Total Tractors: Total Warehouses/DC's: 20 Total Trucks: Total Trucks: Total Square Footage: 9.7 (Million) Total Other: Total Trailers: Total with Rail Doors: Dedicated Contract Carriage Trailers: Total Aircraft: Avg Truck Doors per DC: Total Dry Van: Total Ocean: Asset Ownership v.s. Leased: Total Reefers: Total Other: Transportation Equipment: Total Flatbeds: Warehouses/DC's: Mostly Leased Total Tankers: Total Other: FREIGHT FORWARDING/NVOCC VOLUMES Total Annual TEUs: Total Annual Airfreight Tonnes: Total Licensed Customs Brokers: MARKETS (For functional specializations, see "Customers" section.) Automotive Retailing Technological

INFORMATION SYSTEMS Overall Information Systems Rating: C (E=Excellent, G=Good, C=Capable/Adequate, and I=Inadequate) Software Type: Software Vendor/Brand: Transportation Management System (TMS): Proprietary TMS Optimization Routines: Transportation Planning and Optimization: Proprietary End-to-end Matching/Continuous Moves Warehouse Management System (WMS): Helas/Heyde Mode Conversion/Optimization Network Modeling/Site Location: Many to Many Supply Network Optimization Freight Bill Audit/Payment Software: Proprietary Order Management System: Other Systems Capabilities: Bar Coding EDI Handling Integrated TMS & WMS Internet Customer Access Real-time Track & Trace Demand & Supply Forecasting ERP Interfaces Internet Order Fulfillment Radio Frequency Devices XML Data Handling

Individual Provider Report ©Copyright 2008 Armstrong & Associates, Inc., Stoughton, WI 53589 USA Page 1 of 4 Provider Profile TRANSPORTATION MANAGEMENT SERVICES Transportation Planning Transportation Execution Freight Bill Payment: Transportation Services Carrier Mgmt and Contracting Contract File Maintenance Pre-Audit Air Freight Forwarding Rail Inbound Shipment Planning Exception Handling Post-Audit Consolidation/Deconsolidation Rail TOFC/COFC Outbound Shipment Planning Load Tendering Performed In-house Dedicated Contract Carriage Small Package End-to-end Load Matching Loss/Damage Claims Outsourced Freight Brokerage Specialized Mode Conversion/Optimization Tracking & Tracing Home Delivery Truckload (TL) Less than Truckload (LTL) Ocean Freight Forwarding WAREHOUSING & VALUE-ADDED SERVICES Warehouse/Distribution Center Facilities Mgmt Frozen Refrigerated Rail Siding

A sample of 3PL clients. Services Rendered by Tegma Customer Industry Location TM WM VA DCC Inte IM Intl SCM Lead Other Apple Computers, Office Equipment Brazil

DaimlerChrysler Motor Vehicles & Parts Brazil

Ford Motor Motor Vehicles & Parts Brazil

General Motors Motor Vehicles & Parts Brazil

Globalstar do Brasil Telecommunications Brazil

Hewlett-Packard Computers, Office Equipment Brazil

Honda Motor Motor Vehicles & Parts Brazil

Officer.com Internet Services & Retailing Brazil

Renualt Motor Vehicles & Parts Brazil

Toyota Motor Motor Vehicles & Parts Brazil

Volkswagen Motor Vehicles & Parts Brazil

COUNTRIES with OFFICES Countries served through owned offices or agents Tegma

Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America Switzerland Canada Argentina United Kingdom Mexico Brazil United States Paraguay Uruguay Venezuela

EDITOR'S COMMENTS Tegma’s strength is in the automotive industry transporting over 900,000 vehicles in 2007. Services include vehicle inspection, accessory installation, licensing, and used vehicle auctions. Major customers are: Ford, GM, Honda, Renault, Toyota, and Volkswagen. In early 2007, Tegma integrated the operations of Coimex Logística Integrada and Boni/GATX to strengthen and diversify its portfolio. The Coimex Group, former parent of Coimex Logística Integrada, now owns 24.4% stock in Tegma. Provider's Strengths Modern 3PL with good Brazilian coverage. Provider's Weaknesses

CASES & NEWS Coimex Logistica Integrada S.A. [To view in full html format, follow this link: http://www.3plogistics.com/Coimex_site.htm] Sao Paulo, Brazil – Site Visit March 27, 2001

Contact: Robert Caracik, Director Presidente

Except for the language, walking into the operations of Coimex Logistica is like walking into a third party logistics operation in the United States. The office is modern with a computerized backbone to all its operations. Logistics specialists are organized by cells for individual accounts. Compensation for logistics specialists is partly determined by cell success. Awards for logistics excellence are proudly displayed. I could see the workings of this operation quickly and felt very much at home. Coimex is a very large, profitable Brazilian business that grew from coffee exporting origins. Its operations today emphasize bulk exports, petroleum logistics support, importation of manufactured goods, automotive logistics/transport and third party logistics. Automotive logistics and sales is based near Vitoria. This operation includes a huge facility for final prep of automobiles and an enormous parking lot. It serves as a reshipment point for the Coimex joint venture, Axis do Brazil. Coimex imports are 40% automotive with customers like GM, VW and Toyota. Other major emphases are in hi-tech (Hewlett Packard, Apple, Global Star) and retail goods. Coimex has 200 key customers. In Sao Paulo, Coimex has a modern 3PL warehouse (80,000 square feet) with 6,000 pallet positions. This paperless warehouse provides value added services and Internet inventory reporting. The WMS is Helis from the German company Heyde. (Lufthansa uses this software for its spare parts support operations). Fifteen hi-tech and telecom customers are serviced through this high security facility. The head of Coimex Logistica is Robert Caracik. Caracik received his basic training in the United States. He directed Ryder Logistics’ startup in Brazil. Caracik is a modern, aggressive manager. He runs a modern operation that could be located anywhere. Tegma Logística declares the acquisition season opened [Gazeta Mercantil, November 12, 2007]

After going public and raising R$600 million on the stock exchange, Tegma Gestão Logística, headquartered in the “Frango com Polenta” route in the city of São Bernardo do Campo (São Paulo), declared officially opened the season for acquiring companies that operate load transportation, inventory management and storage activities. Out of the funds raised, R$300 million were set aside from the primary issue, for the acquisition of companies that promote Tegma’s expansion, currently rated among the major logistics operators in the Country with estimated sales of R$680-720 million for 2007. Tegma was born from the integration among companies, in 1998, with the name Axis Sinimbu, a product of the unification of logistics operations of three of the most traditional carriers: Schlatter, Sinimbu and Transfer, specialized in the automotive logistics activity, particularly new cars. In 2001, Axis Sinimbu gave another step towards consolidation when it purchased Ryder, the new vehicles transportation arm that pertained to Translor Veículos, established in 1958 by the businessman Walter Lorch. The U.S. company Ryder, one of the world’s largest carriers, acquired Translor, but did not keep the new car transportation business.

Dominance in new vehicles

Tegma adopted its current name in 2002, with two partners, the Coimex group and Itavema-Sinimbu. Since the going-public process, these two groups now hold two thirds of the capital. The other third is with the market. The major business is the transportation of new cars. Tegma transports one third of the cars produced. The transportation fleet used by Tegma – to a great extent focused on car transportation – is of 2.5 thousand pieces of equipment, 90% of

Individual Provider Report ©Copyright 2008 Armstrong & Associates, Inc., Stoughton, WI 53589 USA Page 3 of 4 Provider Profile which belonging to third-parties, the so-called “cegonheiros”, certainly one of the strongest categories among Brazilian truck drivers in terms of growing, high value-added, captive load, which allows for fairly high freight fees and steady renovation of trucks.

Internationalization phase

Last year, Tegma managed the transportation of 730 thousand vehicles, around one third of the production of cars and light commercial vehicles. In 2007, the company will also account for one third of the vehicles carried, the equivalent to approximately 900 thousand units. Following its policy of consolidating and expanding to gain scale, Tegma gave its first step towards the operational internationalization when at the end of September it debuted in the Venezuelan new car transportation market, incorporating Tegma Venezuela. The Brazilian company, owner of 25% of the capital, is responsible for the administrative and operating management. The business strategy will be resolved in joint decisions with the Venezuelan partners, businessmen from the automotive industry and who incorporated the Promotora Quinta Rueda C.A. This is the right moment to enter into this market. The Venezuelan vehicle market has grown in the first eight months of the year, 52.5%, with 302,853 units. “This partnership with local investors will help us getting to know an important Latin American market, where we will initially serve our main customer, General Motors”, said Tegma’s CEO, Gennaro Oddone. The expectation is to expand our participation to other car makers. 80% of Tegma’s revenue derives from the automotive chain – new car transportation and management of car makers’ parking yards and inventories. The remaining 20% derives from other segments. The trend, according to Oddone, is a growth in transports and logistics operations off the automotive segment – situation that is expected to take place with the recent merger of Boni/Gatx and of CLI (Coimex Logística Integrada). These two companies increased Tegma Logística’s revenues by 20% in a first moment.

Inevitable Consolidation

Tegma covers several sectors. In addition to transportation in the automotive chain, the company carries chemical products, orange juice, pulp and paper, oil byproducts, alcohol and frozen products. It also manages inventories for the telecom, pharmaceutics and electric home appliances industries. “Transportation is our main driver, accounting for 80% of our sales”. According to Oddone, the consolidation is inevitable in order to grow. “Within five years, the market will have a group of large companies, not more than twenty, with revenues over R$1 billion, capable of following the logistics evolution and meeting customers’ wishes and requirements”, he adds. “One must have scale in order to maintain an area of software projects, where we have eight engineers”, he says.

Tegma shares become a new option for investors [Gazeta Mercantil, June 13, 2007]

Tegma Gestão Logística presented yesterday the terms of its public offer, which may exceed R$ 640 million. The operation, which was coordinated by banks JP Morgan and Unibanco, comprises the primary and secondary issue of 20.2 million common shares, which will list the Company on Bovespa’s Novo Mercado. The issue price should range between R$ 26 and R$ 32 per share. Individual investors who are interested in taking part in the offer should file a registration request with the brokerage house from June 19 to 28. The minimum and maximum investment values are R$ 5 thousand and R$ 300 thousand, respectively. Shares make their debut on July 3. Of the total offered value, 9,706,639 shares correspond to the primary offer, which may increase the Company’s cash by R$ 300 million. According to the prospectus, the largest portion of these funds is aimed at future acquisitions. The 10,493,361 remaining shares are owned by the seller shareholders, a block formed by individual controlling shareholders of the Itavema-Sinimbu Group, and by Coimex Trading and CAG, both controlled by the Coimex Group. With the offer, 30% of the company’s capital is transferred to the market. The Itavema-Sinimbu Group has one of the largest concessionaire networks in the Country, and accounted for the sale of 40 thousand vehicles in 2006. The group also acts in the plastic packaging, vehicle rental for outsourcing segments and insurance brokerage for management of the group companies’ policy portfolio. With 59 years of activities, the Coimex Group operates in the areas of distribution and port logistics, with the purpose of serving the oil exploration and production offshore operations. In addition, it operates in the foreign trade sector and invests in the energy, highway concessions, car, motorcycle and real estate consortium sectors. The company was founded in 1998 as Axis Sinimbu, from the unification of the logistic operations of Schlatter, Sinimbu and Transfer. In 2001, the company acquired Transvalor, a pioneer in the new vehicle transportation sector. The company was named Tegma in 2002, and its current shareholders are Coimex and the Itavema-Sinimbu Group. Tegma is an integrated logistic provider operating in the transportation, storage, control and management of inventories and in the development of logistic solutions in several economic sectors.

[via website, 3/01]

One of our specialties is to manage supplies, making information available to our client in real time. Thus, we count on very modern equipment, trained professionals, system of integrated information, structure of more than 750.000 square meters for common storage, customs and services for the adequacy of goods to the Brazilian market. Coimex Armazéns Gerais S.A is certified under the norms of ISO 9002 for all its storage processes and vehicle and cargo movement, counting on the support of PDI Comércio, Indústria e Serviços Ltda., which has the capacity to inspect up to 300 vehicles a day. The search for better solutions has driven Grupo Coimex to develop procedures perfectly tuned to each client's strategy. Through Coimex Logística Integrada S.A., an allied company, we provide all the necessary support to storage, consolidation and distribution of goods to the whole country making use of the most modern technology of system support and information technology resources

Company Name Transportadora Americana Ltda. Address: Av. Com. Thomaz Fortunato, 3466 - Via Anhanguera, Km 124, Americana/SP - CEP 13475-010, Brazil Phone Number: 55 19 2108 9000 Email Address: [email protected] Fax Number: 55 19 2108 9001 Website Address: www.tanet.com.br

COMPANY BACKGROUND Subsidiaries or Related Companies Parent Corporation: TA Log Year Started in Logistics: 1941 Asset Focus: A, N TA Express Market Area: Brazil (A = Asset Based, N = Non Asset Based) Wind Express Founding Business: Cargo Transportation OVERALL CAPABILITY Overall Capability of Provider: Capable, Brazilian transportation manager. KEY PERSONNEL Celso Delle Donne Luchiari CEO Edilson Antonio Bertella Manager

FINANCIAL INFORMATION (FY 2007) Total Logistics Revenue ($Millions): 85 Ticker Symbol Total Net Logistics Revenue ($Millions): 74 * Exchange: Total Logistics Employees (Including Drivers): 2,500 Total Long-Term Contracts Held: Average Length of Logistics Contract (Years): 3 * (Net Logistics Revenue is net of pass-through revenues for purchased transportation.) ASSETS Dedicated Contract Carriage Power Units/Trucks: Total Transportation Assets: Total Warehouses & Distribution Centers: Total Tractors: Total Tractors: 61 Total Warehouses/DC's: 34 Total Trucks: Total Trucks: 82 Total Square Footage: (Million) Total Other: Total Trailers: 202 Total with Rail Doors: Dedicated Contract Carriage Trailers: Total Aircraft: Avg Truck Doors per DC: 11 Total Dry Van: Total Ocean: Asset Ownership v.s. Leased: Total Reefers: Total Other: 31 Transportation Equipment: Leased Total Flatbeds: Warehouses/DC's: Owned Total Tankers: Total Other: FREIGHT FORWARDING/NVOCC VOLUMES Total Annual TEUs: Total Annual Airfreight Tonnes: Total Licensed Customs Brokers: MARKETS (For functional specializations, see "Customers" section.) Retailing

INFORMATION SYSTEMS Overall Information Systems Rating: C (E=Excellent, G=Good, C=Capable/Adequate, and I=Inadequate) Software Type: Software Vendor/Brand: Transportation Management System (TMS): Proprietary TMS Optimization Routines: Transportation Planning and Optimization: Proprietary End-to-end Matching/Continuous Moves Warehouse Management System (WMS): Proprietary Mode Conversion/Optimization Network Modeling/Site Location: Many to Many Supply Network Optimization Freight Bill Audit/Payment Software: Order Management System: Other Systems Capabilities: Bar Coding EDI Handling Integrated TMS & WMS Internet Customer Access Real-time Track & Trace Demand & Supply Forecasting ERP Interfaces Internet Order Fulfillment Radio Frequency Devices XML Data Handling

A sample of 3PL clients. Services Rendered by Transportadora Americana Customer Industry Location TM WM VA DCC Inte IM Intl SCM Lead Other Americanas.com Internet Services & Retailing Brazil

COUNTRIES with OFFICES Countries served through owned offices or agents Transportadora Americana

Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America Brazil

EDITOR'S COMMENTS Transportadora Americana's service area is mainly the southern portion of Brazil. Provider's Strengths Regional transportation management. Provider's Weaknesses

CASES & NEWS

Appendix B

Provider Site Visits

Companhia Vale do Rio Doce (CVRD) Vitoria/Tubarao Site Visit December 4, 2002

Our visit to the Tubarao facility was a follow-up to see some of CVRD’s basic operations. Tubarao is a large port covering 18 square kilometers. It is the primary outlet for CVRD’s iron ore mining operations. 75 types of iron pellets are shipped from Tubarao to smelters around the world.

Other bulk commodities shipped from and to the facilities include wood pulp, coffee, cement and granite outbound. Inbound commodities are petroleum products and fertilizer. CVRD has 3,600 employees at this location in addition to 6,000 contractor employees work here.

Operations are heavily automated emphasizing tram car dumpers, conveyers and cranes. A centralized computer control system provides efficient 24/7 coverage.

CVRD maintains and replants the trees, bushes and other flora on this peninsula. As a result, the grounds are pleasant for a port facility. In addition, CVRD practices extensive dust control and the waters around the port look quite clean.

The railroad has a one meter gauge track and ties to the system throughout south- central Brazil, running inland to the Belo Horizonte mining area. (Throughout North America, Europe and Asia the standard gauge is 1.44 meters.)

At this point some explanation is in order. CVRD owns four rail lines. These operations primarily connect the coast to the interior and operate North and South along the coast in the bottom half of Brazil. The Corajas Railroad runs into the Amazon basis. It was built by CVRD using its own funds. The other railroads were built by the government and CVRD. Until 1998 the Brazilian government owned CVRD. CVRD also has five steamships left from a fleet high of 22 a few years ago. The CVRD railroads are operated through a modern computerized traffic control center. Rail operations include passenger routes between Belo Horizonte and Vitoria.

CVRD also maintains two berth container port operations (TVV) in Vitoria. This operation handles 165,000 TEUS a month and is at capacity. About 8,000 square meters of warehouse space is available and is nearly full of inbound cast ore materials. Most inbound products are high-value consumer goods. Most outbound is coffee and granite. The Vitoria port allows for a maximum vessel size of 3,500 TEUS. CVRD has plans for adding a large yard and distribution center a few kilometers from the port. This facility will be critical for CVRD’s 3PL development.

CVRD controls the majority of shipping between Brazilian ports. CVRD does almost $3 billion a year in transportation. Given the infrastructure and profitability it has in Brazil, it has the resources to become a dominant 3PL.

Guilherme Laager, the new VP in charge of logistics, is assembling a group of young managers to help him change CVRD to become a modern integrated logistics manager and 3PL. We believe CVRD is well positioned to be one of the major 3PLs in South America. Growth for inbound consumer products should be substantial. To get a feel for the scope of this company visit www.cvrd.com.br.

To meet the needs of its global customer Ford Motor, Penske Logistics established its Brazilian operations in 1998 by investing in a joint venture with Cotia Trading company. In August of 2005 Penske Logistics bought out the remaining interest in Cotia Penske Logistics and formed a wholly-owned company. In a market that is just starting to embrace logistics outsourcing, Penske has leveraged its local staff with Brazilian market expertise to grow revenues from $25 million in 1998 to $65 million in 2006. It currently has an approximate staff of 1,200 associates and 1.8 million square feet of warehouse space primarily serving the needs of 14 major customers. Top Brazilian customers include: Ford, HP, Ingersoll Rand, General Motors, Lexmark, Officer, Samsung, Sony, Terra, and Tyco.

A good example illustrating Brazil's logistics challenges are Samsung's outbound distribution operations. To meet the demands of the Brazilian market, Samsung has built manufacturing plants in Campinas (just outside of Sao Paulo) and in the north central city of Manaus. Manaus is a targeted growth city developed out of the Amazon rainforest by the Brazilian government. Because of its location and the need to transport products via the Amazon river before being transloaded into trucks, the transit time from Manaus to Sao Paulo (Brazil's largest city) is 12 days.

Sao Paulo Samsung Warehouse Penske manages the majority of Samsung's Brazilian distribution operations including a 120,000 square foot warehouse adjacent to its headquarters in Barueri-Sao Paulo. Approximately 1,200 stock keeping units (SKUs) are maintained in on-hand inventory for same-day order fulfillment. Security is very tight since high-value products stored include: large flat-panel televisions, computer monitors and appliances.

3 ©Copyright 2008 Armstrong & Associates, Inc. Approximately 30,000 pieces are received from Manaus and 100,000 pieces are received from overseas operations each year. Penske's systems automatically schedule receiving dock doors. Inbound product quantities are verified, barcoded and if necessary serial numbers are scanned in by Penske personnel prior to being directed for putaway by Penske's warehouse management system (WMS). Penske's facility is very modern and all activities are driven by its WMS via radio frequency (RF) devices.

Product is stored in five position racking with the fastest moving items stored on the floor closer to the outbound shipping doors. Picking is RF driven and is typically done in waves, routes, or by final customer. Penske performs continuous cycle counting and reconciles Samsung's inventory each day. Inventory accuracy has been running at 99.7% and inventory turns 1.5 times per month.

During Samsung's peak season from August through December, approximately 400 outbound orders are filled per day. Outbound transportation is managed using Penske's proprietary "e-cargo" transportation management system (TMS). In addition to warehousing and distribution, Penske is also performing repair and refurbishment work for Samsung. This includes performing returns processing, product quality checks and basic refurbishment and repackaging. Samsung's Brazilian customers include retailers: Casas Bahia, Carrefour, Pão de Açúcar, and Wal-Mart.

Sao Paulo Multi-Client Warehouse (MCW) A short drive from Penske Logistics Brazilian headquarters, is its very secure 250,000 square foot multi-client warehouse. Having an approximate workforce of 350 the MCW utilizes Penske's proprietary TMS and WMS and with integrated RF interfaces to manage logistics functions.

Penske runs a sizable aftermarket spare/service parts kitting and fulfillment operation for GM's Brazilian car dealer distribution network. The operation is staffed by 150 workers in three shifts occupying 60,000 square feet of space.

Each month approximately 2.1 million parts are picked, packed and shipped to dealers and GM's regional parts distribution centers. Many of the shipments require significant transportation management with same-day or specific delivery window requirements.

Lexmark is another large MCW customer and has grown with Penske since its operation startup in 2004. It occupies 53,800 square feet. A staff of 45 associates are responsible for receiving inbound product, performing product customization, warehouse management, outbound distribution, and reverse logistics services. An example of one

4 ©Copyright 2008 Armstrong & Associates, Inc. value-added service being provided is special ink jet labeling for the Brazilian market. Penske manages approximately 3,000 outbound loads per month for Lexmark. Sony Style's Brazilian business to consumer internet order fulfillment operation operates in a fenced off 35,000 square foot section of the warehouse. Approximately, 250 orders for everything from large screen high definition televisions to accessories are processed each month. Sony's enterprise resource planning (ERP) system has been integrated with Penske's WMS to efficiently manage warehouse activities. In addition to order fulfillment, Penske provides Sony with full outbound transportation management services. Approximately half of the outbound orders are LTL (less than truckload) and half are FTL (full truckload).

Penske is a primary 3PL for Brazilian headquartered Officer Distribuidora a wholesaler of IT equipment and software. Officer has a branch office located in the MCW and is directly integrated with Penske's WMS for order picking and outbound fulfillment.

The final MCW customer operation we viewed was for Terra, an online business selling caller identification equipment, modems, cable television converters, and other electronics. It occupies approximately 30,000 square feet of the MCW and utilizes Penske's "Logix" ERP system for order fulfillment and customer invoicing.

Ford Parts Distribution Center Operations Penske Logistics manages two aftermarket automotive parts distribution centers (PDCs) for Ford in Brazil; one is in the Northeast and the second one which we toured is in Sao Paulo. With an approximate dealer network of 500, both operations require top-notch integrated value-added warehousing and transportation management capabilities.

The 387,000 square foot dedicated Sao Paulo Ford PDC began operations in 1999 and is staffed by 220 Penske associates. Inbound parts are received from Ford's manufacturing plants and suppliers. Inventory consists of approximately 47,000 SKUs and 10 million items stored in over 81,000 warehouse locations. Penske's key performance indicators include a minimum order fill rate of 97% and 99.6% inventory accuracy. Penske has been running at 99.9% inventory accuracy.

To increase operational efficiency, Penske developed four 12 meter high vertical carousel sorters for picking fast moving items. Each individual sorter contains 82 shelves and can quickly process hundreds of orders at the same time.

Outbound parts orders are received from Ford's dealer network and Penske picks, packs, and ships the orders. Delivery requirements are stringent. Orders received by 2 5 ©Copyright 2008 Armstrong & Associates, Inc. P.M. must be shipped that day and those received by 6 P.M. for Sao Paulo dealers must be delivered by Penske that evening. All other orders must be delivered within 48 hours of order receipt.

Transportation Management System - "e-cargo" To tackle the distinct needs of managing transportation in Brazil, Penske Logistics uses its proprietary transportation management system (TMS) dubbed "e-cargo". While Penske uses i2 for TMS in the U.S., e-cargo has been developed to handle four federal Brazilian taxes, individual state taxes, and a tax imposed on each transportation invoice. e-cargo runs as an ASP web application via sequel server (SQL) on an Oracle database. Overall transportation execution functionality is very robust. Orders are received from customers via EDI interfaces directly into e-cargo. The system in-turn facilities optimal routing, carrier selection, rates shipments and drives picking on the warehouse floor. e- cargo has templates for automatically preparing bills of ladings. Once shipments are in transit, e-cargo offers solid internet tracking and tracing capabilities via communications with carrier global positioning systems (GPS) or through "check" calls to Penske's central transportation management call center. This shipment visibility provides Penske with vital information to insure high-value loads are secure.

Summary By leveraging its local expertise and inherent skills as an automotive logistics leader, Penske is growing its presence amongst high-tech industry customers in Brazil. We anticipate that Penske Logistics will continue its global expansion by developing solid integrated warehousing and transportation management operations in high-tech and other select verticals.

Appendix C

List of Brazilian 3PLs

Source: RevistaTecnologística -June2008 (NF)= Data notsupplied A GI ArmazénsGeraiseLo Provider/Phone/E-mail/Website denise@[email protected] henrique [email protected] Sac.divlo comercial@armlo [email protected] Brapress TransportesUr comercial@a [email protected] www.brasiliensecar marketin A [email protected] Campos OperadorLo A [email protected] www.atlastranslo [email protected] www.a LL AméricaLatinaLo A abran www.bueno a car rmazéns GeraisColumbia www.brasilmaxi.com.br www. [email protected] Rafael@baselo poio Lo g www.columbia.com.br www.andreani.com.br www.all-lo www.brapress.com.br [email protected] www.car www.abran www.baselo www.campos.com.br www.rodasul.com.br www.binotto.com.br www.alianca.com.br [email protected] www.brucai.com.br www.a A g A g www.cam-la.com Brasiliense Car www.a a (41) 2106-070 (41) 3373-232 (19) 2102-490 @brasiliense.com.br Brucai Lo ndreani Lo (19) 2106-810 (41) 2141-755 (21) 2107-600 (49) 3221-182 (21) 2702-800 (11) 3429-333 (19) 3782-680 (19) 3876-900 (51) 3041-200 (11) 3658-728 (12) 3955-110 (11) 3382-224 (11) 3883-615 (11) 3515-820 (11) 6889-610 (11) 3305-999 (11) 5185560 (11) 4133350 bran uerra@ g A g g A A Bueno Grupo A @atlastranslo g g e@abran tlas Lo v@a GM Lo GV Lo g Brasilmaxi GR Rodasul rupoenar.com.br mlo Car g @columbia.com.br Baselo Binotto A ística eServi g g g lian CAM g e Lo g ilo g r.rodasul.com.br g g g olift.com.br v.com.br g v.com.br g istica.com.br g olift g rupo.com.br g g rupoenar.com.br g istica.com g ç ística g ística g ística e.com.br .com.br g a ística g g istica.com.br g g .com.br ística ística e.com.br .com.br g g g ística Inte .com.br o.com.br g 0 0 0 0 0 8 3 0 4 9 9 0 5 0 0 0 0 0 0 0 3 g o g g ístico g .com.br ística ç entes o s g r rada 0Tasot360NNF N 10 3,600 Transport 30 3Tasot17Y30 Y 107 Transport 13 22 20 10 1Riwy640Y7 ADMGraos;Bunge;Cargill 70 Y 6,400 Railway 11 11 14 0SaTasot117YN Gerdau;LG;Unilever NF Y 1,147 SeaTransport 20 5 rnpr ,0 5Alcoa; AmBev;Cosipa 15 Y 1,500 Transport 8 rnpr 1 5Faet;LG; SempToshiba 35 Y 95 317 Y Transport 175 7 Customs 8 9 7 5 rnpr 0Y21 Y 70 Transport 8 rnpr 0 Y 200 Transport 6 rnpr 0Y7 Y 70 Transport 3 rnpr 2Y5Dana;General Motors;Volvo 5 Y 92 Transport 8 Years in Market Transport & Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Warehouse Electrical Operator Operator Logistics Logistics Industry Provider General General General General General General General Service

Origin of Business ,0 35 Y 1,200 ,0 53 Y 1,008 1,850 1 13 Y 110 5 Y 253 5 20 Y 350 7Y6 Y 87 0Y9 Y 20 1N40 N 41 9Y3 Y 79 # of Employees ISO 9001: SASSMAQ 2000 Certifications FLanxess;Ligth;Mattel NF 25 40 # of Contacted Customers Eurofarma; MerialSaúdeAnimal; Cosméticos; VotorantimCelulose Caterpillar doBrasil;Prysmian; Ampla; BRDistribuidora;Nova Lear doBrasil;SuzanoPapele Bayer ScheringFarmaceutica; PPG Tintas;SABICInnovative Braskem; CornProducts;SIG 3M doBrasil;Henkel;Rhodia Votorantim CeluloseePapel Elektro Eletricidade;Endesa Ericsson Telecomunicações; Colgate-Palmolive; Lipson Celulose; Wal-Mart Robert Bosch; UTi Schering-Plough Combibloc América Plastics e Papel Brasil Brasil NF NF NF NF NF Main Customers A Ag Pharmaceuticals, Healthcare,Paper Hy Agriculture, ConsumerElectronics, Nutrition, Automotive,Electronics, Automotive, Electronics, Graphics, Automotive, Footwear,Cosmetics, Nutrition, Automotive,Beverages, Nutrition, Automotive,Beverages, utomobile, e-Business,Electronics, Agriculture, Automotive,Cement, Automotive, Hazmat,Electronics, Automotive, Beverages,Hazmat, Nutrition, EnergyandElectricity, Nutrition, Beverages,Cosmetics, Nutrition, EnergyandElectricity, Automotive, Chemicals,Hazmat, Cosmetics, Pharmaceuticals,IT, Packaging, PaperandCellulose, Lubricants, PaperandCellulose riculture andA g Nutrition, Hazmat,Fragrances Products, PaperandCellulose Financial Institutions/Banks, Pharmaceuticals, Healthcare Toys, Electronics,Electricity, Pharmaceuticals, Veterinary iene andCleanin Automotive, Electronics, IT, Nutrition, Electronics,Toys, Nutrition, Toys,Cosmetics, Petrochemicals, Chemicals Industrial Waste,Textiles Consumer Electronics Industrial, Chemicals Telecommunications Telecommunications Veterinary Products, Pharmaceuticals, IT Oil andGas,Mining Pharmaceuticals Petrochemicals Electronics, IT IT, Chemicals and Cellulose and Cellulose Toys, Steel Electricity Hazmat g

ricultural Inputs, Main Industries Served g , Metal,Paper 1 ,0 Y 2,400 8 2,200 961 N 16 39.6 721 N 19 97.2 8 8N 18 384 N 20 165 483 . 9N 19 7.5 . . N 5.9 9.2 F2 N 20 NF NF F1 N 17 NF NF FN N NF NF F1 5700 15,700 N 17 NF 73 N 36 47 81 Y 15 28 11 N 18 21 71 0000 10,000 N 17 47 5NFN 0Y 20 7 Annual Gross Revenue (R$ Millions) FY NF 4N 14 Y 18 1Y 11 Growth in Revenue (%) 2006/2007

Own Offices Abroad 9,0 86090704,825m³ 950,700 78,650 0 291,500 10,000 139,000 2,5 4000300125037302 0ml880 mil 70mil 4 21 327,350 192,500 3,000 0 14,000 120,850 6,0 FN F20005000N 0 NF 550,000 290,000 NF NF NF 160,000 0000 20,000 1404600200m 80014009 3 114,000 48,000 67,200 2,000m³ 1,200 0 1,000 4,600 0 61,400 28,000 37,000 3,000 0 0 16,000 110,000 25,500 80040001001,0 2007 42,000 19,000 0 1,000 5,425 0 38,480 4,000 18,000 5001,0 0 10,000 15,000 0504200380145023004 0mlSU 530 mil 50milSKUs 1 42 0 213,000 134,500 60,000 3,800 25,000 0 0 20,000 4,200 70,500 ,0 0 1,200 ,0 6000 16,000 8,500 ,0 0 5,000 FN FN NF NF NF NF NF Own

Customers (in house) Warehousing Space(m 0 ,0 2105 22,100 2,000 100 0 0 0 0 0 0 0 Bonded ,0 ,0 1 8,400 7,200 0 5,0 9,0 7 299,000 150,000 0 4003,0 1 30,000 14,000 0 ,0 2503 32,500 6 8,000 243,905 0 200,000 0 8007,0 4 73,700 58,000 0 0003,0 F50210 mil 590 NF 2 35,000 30,000 0 0006,0 3 65,000 40,000 0 3506,0 FN 72mil NF NF 9 63,500 43,500 0 700120081 8 i 424mil 180mil 12 8 132,000 47,000 0 0,0 1,0 2 115,000 105,000 0 Refrigerated 2 9,4 ,7,3 21 1,471,639 599,848 ) ,0 4,0 114ml1.8mil 1.4mil 11 4 141,500 3,000 Patio NF ©Copyright 2008Armstrong & Associates, Inc. Total Total Warehouses FN NF NF NF Own 6ml41.2mil 16mil 0 2N i 5,280 1mil 0 0 2ml360mil 22mil 2 1 0 34ml254mil 43.4mil 300mil 4 35mil 3 2 i 73mil 6mil 1 i 92mil 4mil 2 0 Customers (in house) Total Volumeof Goods Handled NF NF NF F145 mil NF F186mil NF F1.2mil NF

FN Items/Year NF NF NF NF

F Weight (t)/Year Tracking Technology Services Offered Transportation Technology Rotating Satellite Phone Coverage in the National Territory Fleet Fleet Fleet Warehousing Inventory Control Packaging Kitting Outsourcing Mgmt. Pallet Cross-Docking Coordination Distribution Door-to-Door Transfer Milk Run Intermodal Management & Simulation Software Optimization WMS TMS ERP Consultation Internet Phone Consultation Provider/Phone/E-mail/Website Own Transport Fleet JIT Customs (Imports/Exports) Reverse Logistics Tax Support Project Development Monitor Performance Supply Warehousing TM Distribution Own Outsourced Own Outsourced Own Outsourced Abrange Logística (19) 2106-8100 All of the National Territory All of the National TerritoryYYY Y YNN YYYYYYY YYY Y YYY YYYYYYYYY Y YN [email protected] www.abrange.com.br AGI Armazéns Gerais e Logística Integrada (11) 3883-6150 Greater São Paulo Greater São Paulo N N Y NNY N FYYYYYYYNN NNYYYYYYYNN Y YNNYN [email protected] www.agilog.com.br AGM Logística South, Southeast, Northeast, (21) 2107-6000 Greater Sāo Paulo, Greater All of the National Territory N N NF N NF N NF YYYYYYYYNYYYYYYYYYYY Y YYYYY [email protected] Rio de Janeiro www.agmlogistica.com.br AGR Rodasul (51) 3041-2000 South, Greater Sāo Paulo, All of the National Territory YYYYNYYYYYYNYYYNYYNYYYYYYYY N YYYYY [email protected] Greater Rio de Janeiro www.rodasul.com.br AGV Logística (19) 3876-9000 All of the National Territory All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.agv.com.br Aliança (11) 5185 5600 All of the National Territory All of the National Territory N N Y N Y N Y YYYYYYYYYYYYYYYYYYYY N NNNYN [email protected] www.alianca.com.br ALL América Latina Logística (41) 2141-7555 South, West-Central, Greater South, West-Central, Greater YYYYNFNFNFYYNNYNNNNYYYNYYYYYYY Y YYYYY Sāo Paulo Sāo Paulo www.all-logistica.com Andreani Logística (11) 3515-8200 South, Southeast, Greater Sāo All of the National Territory YYYYYYNYYYYYYYNNNNYNNNYNYNN Y YYYYN [email protected] Paulo, Greater Rio de Janeiro www.andreani.com.br Apoio Logística e Serviços (11) 3382-2249 South, Southeast, Greater Sāo South, Greater Sāo Paulo YYYYYYYYYYYYYYYNYYYYYYYYYNY Y YNNYY [email protected] Paulo, Greater Rio de Janeiro www.grupoenar.com.br Armazéns Gerais Columbia South, Southeast, Northeast, (11) 3305-9999 Greater Sāo Paulo, Greater All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYNY Y YYYYY [email protected] Rio de Janeiro www.columbia.com.br Atlas Logística (11) 4133 3500 All of the National Territory All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYNYY [email protected] www.atlastranslog.com.br Baselog (41) 3373- 2323 South, Southeast, Greater Sāo South, Southeast, West- NNYNYYYYYYYYYYYYYNYYYYYNYNN Y YNYYY [email protected] Paulo Central, Greater Sāo Paulo www.baselog.com.br Binotto (49) 3221-1824 South, Southeast, Northeast, South, Southeast, Northeast, YYYYYYYYYYYYYYNYYYYYYYYYYYY Y YYYYN [email protected] Greater Sāo Paulo Greater Sāo Paulo www.binotto.com.br Brasiliense Cargo (19) 2102- 4900 Southeast Southeast YYYYYYYYYYYYYYNYNNYYYNNYYNY Y YYYYN [email protected] www.brasiliensecargo.com.br Brasilmaxi (11) 6889-6100 Southeast, Greater Sāo Paulo, All of the National Territory YYYYYYYYYYYYYYNYYYYYYYYYYYY N YYYYN [email protected] Greater Rio de Janeiro www.brasilmaxi.com.br Brapress Transportes Urgentes (11) 3429-3333 All of the National Territory All of the National Territory Y N N YYYYNNNNNNYYYYYYNNNYYYNY Y NYYYY denise@[email protected] www.brapress.com.br Brucai Logística (11) 3658-7288 West-Central, Southeast, Southeast, Greater Sāo Paulo YYNFYYYYYYYYYYYYNYYYYYYYYYYY Y YYNYY [email protected] Greater Sāo Paulo www.brucai.com.br Bueno Grupo (12) 3955-1100 Greater Sāo Paulo Greater Sāo Paulo YYYYNYYYYYYYYYYNYYYYYYYYYYN N YYYYN [email protected] www.buenogrupo.com.br CAM (21) 2702-8000 All of the National Territory All of the National Territory Y N N Y Y N N YYYYYYYNNYNYYYYYNNNN N YNYYY [email protected] www.cam-la.com Campos Operador Logístico (19) 3782-6800 Greater Sāo Paulo Greater Sāo Paulo YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YNNYY [email protected] www.campos.com.br Cargolift (41) 2106- 0700 South, Southeast, Greater Sāo South, Greater Sāo Paulo YYYYNYYYYNYYYYYYYYYYYYYYYYY Y YYYYY Paulo, Greater Rio de Janeiro www.cargolift.com.br Source: Revista Tecnologística - June 2008 (NF) = Data not supplied 2 ©Copyright 2008 Armstrong & Associates, Inc. Source: RevistaTecnologística -June2008 (NF)= Data notsupplied [email protected] [email protected] Provider/Phone/E-mail/Website [email protected] [email protected] www.expressonepomuceno.com.br [email protected] coopercar www.expressolamounier.com.br cevalo diretoria@exatalo www.expressobrilhante.com.br Conseil Lo www.expressomirassol.com.br marketin aceballos@ www.servilo commercial@celerelo Exata TransporteseLo DGT Distribui [email protected] www.estrelaoriente.com.br www.exatalo [email protected] Custódia ArmazénsGerais www.deltarecords.com.br www.coopercar Marketin www. Delta Servi www.dallo [email protected] www.cevalo www.exolo Expresso Nepomuceno www.celerelo DHL ExelSupplyChain bma@ebama www.ebama diretoria@d www.estrada.com.br www.conseil.com.br Célere Intralo Expresso Lamounier Estrada Transportes g Expresso Brilhante [email protected] Estrela doOriente Expresso Mirassol www.cesa.com.br [email protected] www.elba.com.br istics@cevalo www.d www.dhl.com.br (11) 2199-695 (11) 4072-620 (41) 3381-230 (19) 3206-220 (11) 3809-010 (11) 2195-866 (31) 3663-350 (24) 2106-303 (11) 4208-190 (31) 3555-550 (11) 2141-122 (11) 2109-065 (11) 2133-870 (11) 4707-112 (71) 2203-900 (35) 3694-991 (11) 5670-567 (41) 3302-080 (49) 3381-230 (13) 3298-200 (31)3555-260 CEVA Lo g Cesa Lo g g Coopercar Exolo a@coopercar g rupocar @dallo CSI Car Dal Lo ística eDistribui Ebama g g rupocar g [email protected] Elba g ç g solucoes.com.br ç g g os Lo istics.com.br g t.com.br ão eLo g g istica istica.com.br g g istica.com g g ística istics.com g g g istics t.com.br g g g g istics.com.br g is istica.com.br .com.br .com.br g o.com.br o .com.b g a.com.br g ística g g a ístico istics.com g o.com.br 0 5 4 0 0 0 0 0 0 2 0 5 0 0 1 0 0 9 0 0 0 g .com.b g g a.com.br ística ística r s ç r ão r r 6Tasot340Y31 Y 10 3,450 Transport 16 10 8Tasot90YN AmBev;Danone;Sadia NF Y 960 Transport 18 11 11 2Tasot5 Y 55 16 Transport 12 AmBev;Braskem;Sadia 73 Y 1,250 Consulting 21 13 1Tasot50YNF Y 500 Transport 11 11 10 4Tasot9 N 93 Transport 14 5Tasot33Y88 Y 363 Transport 15 6Tasot60Y150 Y 660 Transport 26 rnpr 3Y5 Y 73 Transport 8 2 8 rnpr 0Y9 Bher;Gestamp; MetalKraft 95 Y 80 Transport 4 rnpr 2N 62 Transport 3 Years in Market Construction Warehouse rnpr 1 BASF;Bayer; DuPont 7 Y 311 Transport Operator Operator Operator Operator Operator Operator Operator Logistics Logistics Logistics Logistics Logistics Logistics Logistics General Civil Origin of Business ,0 150 Y 7,000 ,0 9 N 1,200 ,0 561 Y 18 7,300 Y 1,500 ,0 116 Y 1,700 8 25 N 180 5 Y 350 1 4 Y 210 0 0Masterfoods; Stihl;Vivo 30 N 500 # of Employees

Certifications 40 42 14 5N # of Contacted Customers Embelleze; Sabó;SuzanoPapele Boehringer IngelheimdoBrasil; Cosan/Usina daBarra;L’Oréal; Banco Itaú;Bematech;Cand FUJIFILM daAmazonia;Honda Cadbury Stani;DowChemical; Banco Real;Santander; Gerdau Açominas;Samarco BASF; FordMotor; Magneti AmBev; Camargo;Correia; Mercedes-Benz; Novelis; AAM doBrasil;Renault; Minerçao; Usiminas Unilever Argentina Cimentos; Nestlé CNH; Fiat;Ford Volkswagen Volkswagen Automoveis Febraban Celulose Sodexo Marelli NF NF NF

F Main Customers Lubricants, Metals,Industrialinputs Ag Footwear, Electronics,Hygieneand Automotive, Footwear,e-Business, Agriculture, Nutrition,Automotive, Agriculture, Nutrition,Automotive, Cleaning, ToysandSporting Goods Pharmaceuticals, ConsumerGoods Automotive, Electronics,Graphics, Nutrition, Automotive,Beverages, Nutrition, Automotive,Beverages, Nutrition, Automotive,Cosmetics, Nutrition, Automotive,Household Automotive, HouseholdProducts, Automotive, Beverages, Hazmat, Nutrition, Beverages,Cosmetics, Products, HygieneandCleaning, Household Products,Electronics Graphics, PromotionalMaterials riculture, Automotive,Bevera Hazmat, Cosmetics,Electricity, Nutrition, Beverages,Cement, Nutrition, Beverages,Hazmat, Automotive, Industrial inputs, Hygiene andCleaning,Mining Financial Institutions/Banks, Electricity, Pharmaceuticals, Automotive, Metals,Mining, Telecommunications, Tires Hygiene andCleaning,IT, Iron andSteel,Packaging Industrial, Perishables Electronics, Graphics, Electronics, Financial Telecommunications Publishing/Printing Institutions/Banks, Beverages, Hazmat Chemicals, Hazmat Industrial Inputs Lubricants, Tires Petrochemicals Beverages Cosmetics Tobacco Retail Toys Main Industries Served 3 g es, 4. 65N -6.5 144.1 15.3 141. N 10.5 41.4 934 N 48 59.3 48N N NF 54.8 2 0Y 40 222 6 FY NF 763 340 . 65N 16.5 4.5 . 0N 20 7.2 F1 Y 16 NF NF FN N NF NF FN N NF NF F2 N 25 NF NF NF 15 N 58 61 55 15 03 N 35 40 Annual Gross Revenue (R$ Millions) NF FN NF NF 5N 25 N 60 12 8N 28 Growth in Revenue (%) 2006/2007 N Y Y Own Offices Abroad 11,000 m 200,000 109,500 230,000 15,000 0 280,000 500,000 5006,0 8,000 80,000 50,000 0 20,000 60,000 45,000 50,000 30,000 0003000 50,000 3,000 10,000 0001000 1,000 40,000 2000 12,000 2003,0 0 30,000 82,000 ,0 ,0 FNF NF 2,000 8,000 5,000 0 3,000 25,000 4,900 8,600 ,0 0 9,000 0 0 150,000 0 0 Own ³ 2,0 0000100069002 513mlNF 173mil 35 20 669,000 110,000 0 30,000 329,000 0 371,000 00002,000 0 30,000 0000 60,000 ,0 0 2,000 0 4,000 ,0 5003,0 0,0 52 15 100,000 30,000 15,000 0 5,000 0 0000 0 Customers (in house) Warehousing Space(m 0 0 0 Bonded 8,000 m 0 0 5,0 3,0 23 . i 1.8mil 1.8mil 32 22 0 938,500 458,000 19,000 0 10,000 0 5 506 9550 950 0 0 3,000 0 8,0 ,4,0 F47 i 1.6mil 78 mil 4 NF 1,040,000 980,000 0 0 ,0 8502 18,500 5,500 0 0009,0 52 25 91,000 50,000 0 2,0 3,0 9 232,000 120,000 0 Refrigerated ³ 2 0,0 5,0 5 450,000 300,000 5,0 6,0 8 263,000 150,000 ) 2004,0 4 44,900 12,000 ,0 6001 16,000 3 1,000 40,000 6,000 ,0 1503 0 31 21,500 9,500 5,0 10 0 150,000 0 0 8,0 029 20 780,000 0 6,0 5 262,000 0 Patio 11,000 m 2007 52,000 ,0 5 8,000

4 Own 2 0 3 1 5 5 . i 65mil 3.5mil 0 1.6mil 12milSKUs 0 7 4 3 . i 78.3mil 3.6mil 1 . i 276mil 6.9mil 6 Customers (in house) 5ml36mil 55 mil Total Volumeof Goods Handled NF NF NF F2.9mil NF NF F150mil NF NF NF NF NF NF NF 01.5mil 50 Items/Year 2 mil NF NF NF NF NF NF NF NF NF Weight (t)/Year Tracking Technology Services Offered Transportation Technology Rotating Satellite Phone Coverage in the National Territory Fleet Fleet Fleet Warehousing Inventory Control Packaging Kitting Outsourcing Mgmt. Pallet Cross-Docking JIT Customs (Imports/Exports) Reverse Logistics Tax Support Project Development Monitor Performance Supply Coordination Distribution Door-to-Door Transfer Milk Run Intermodal Management & Simulation Software Optimization WMS TMS ERP Consultation Internet Phone Consultation Provider/Phone/E-mail/Website Own Transport Fleet Warehousing TM Distribution Own Outsourced Own Outsourced Own Outsourced CélereAb Intralo L ígística i (11) 5670-5670 All of the National Territory All of the National Territory N N Y N Y N Y YYYYYYYYNYYYYNYNNNNY Y YYYYY [email protected] www.celerelog.com.br Cesa Logística Southeast, Northeast, Greater (31) 3663-3500 NF Sāo Paulo, Greater Rio de YYYYYYYYYNNYYYNYYNYYYYYNYNY N YYYNY [email protected] Janeiro www.cesa.com.br CEVA Logistics (11) 4072-6200 All of the National Territory All of the National Territory YYYYYYYY YYYYYYYYYYYYYYYYYYY Y YYYYN [email protected] www.cevalogistics.com Conseil Logística e Distribuição (71) 2203-9009 Northeast Southeast, Northeast Y Y Y NF NF Y Y Y Y N Y NF Y YNNYNYNYYYYYNN Y YNNNN [email protected] www.conseil.com.br Coopercarga (49) 3381-2300 South, Southeast, Greater Sāo South, Greater Sāo Paulo YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] Paulo, Greater Rio de Janeiro www.coopercarga.com.br CSI Cargo (41) 3381-2300 South, Southeast, Greater Sāo South, Greater Sāo Paulo YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] Paulo www.grupocargo.com.br Custódia Armazéns Gerais (11) 4707-1121 Greater Sāo Paulo, Greater North, Northeast NNNNNN N Y YYYYYYNNNNYYNYNNNNN N YYYYN Rio de Janeiro www.servilogsolucoes.com.br Dal Logis (11) 2109-0650 All of the National Territory All of the National Territory Y YNFYNF Y NF YYYYYYYYNYYYNYYYYYNN Y YYYYY [email protected] www.dallogistics.com.br Delta Serviços Logísticos (11) 4208-1900 All of the National Territory All of the National Territory N N NF N NF N NF YYYYYYYYNYYYYYYYYYYY Y YYYYN [email protected] www.deltarecords.com.br DGT Distribuição e Logística South, Southeast, Northeast, (11) 2199-6955 Greater Sāo Paulo, Greater All of the National Territory Y N N Y Y YYY Y YYYYYYNYYYYYYYYYNY Y YYYYN [email protected] www.dgt.com.br Rio de Janeiro DHL Exel Supply Chain (19) 3206-2200 All of the National Territory All of the National Territory N N Y N Y N Y YYYYYYYYNYNYYYYYYYYY Y YYYYN [email protected] www.dhl.com.br Ebamag South, Southeast, West- (24) 2106-3032 Southeast, Greater Sāo Paulo, Central, Greater Sāo Paulo, YYYYYYNYYYYYYYYNYNYYYYYYYYN N YYYYN [email protected] Greater Rio de Janeiro www.ebamag.com.br Greater Rio de Janeiro Elba (31)3555-2600 Southeast Southeast YYYYYYYYYYYYYYYYYYYYYYYNYNY Y NNYYY [email protected] www.elba.com.br Estrada Transportes (13) 3298-2000 Southeast, Greater Sāo Paulo All of the National Territory Y Y NF Y NF N NF Y YYYYYNYYNNYYNYYYYNY Y NYYYN [email protected] www.estrada.com.br Estrela do Oriente (41) 3302-0800 South, Southeast, Greater Sāo South, Southeast, Greater Sāo YYYYYYYYYYYYYYYNYYYYYYYYYYN Y YYYYY [email protected] Paulo Paulo www.estrelaoriente.com.br Exata Transportes e Logística South, Southeast, West- (11) 2133-8700 Central, North, Greater Sāo All of the National Territory N N Y N Y NYYYYYYYYYNYYYYYYYYYYY Y YYYYY [email protected] www.exatalogistica.com.br Paulo, Greater Rio de Janeiro Exologistica (11) 3809-0100 South, Greater Sāo Paulo All of the National Territory YYYYYN NF YYYYYYYYNYYYYYYYYYYY Y YYNYN www.exologistica.com Expresso Brilhante Southeast, West-Central, West-Central, North, (11) 2195-8660 Greater Sāo Paulo, Greater Northeast, Greater Sāo Paulo, Y YYYYNYY YYYYYYYNYYYYYYYYYNY Y YYYYN [email protected] www.expressobrilhante.com.br Rio de Janeiro Greater Rio de Janeiro Expresso Lamounier (31) 3555-5500 Southeast, Greater Sāo Paulo Southeast YN NYNYY YNNYYYYNNYNNNYNYYYNN N YYYNN [email protected] www.expressolamounier.com.br Expresso Mirassol (11) 2141-1224 All of the National Territory All of the National Territory YYYYYYYYNNNNYYYYYNYNYYYYYYY N YYYYN [email protected] www.expressomirassol.com.br Expresso Nepomuceno South, Southeast, Northeast, (35) 3694-9915 Greater Sāo Paulo, Greater Southeast, Greater Sāo Paulo YYYYYYYYYYYYYYYNYYYYYNYYYYN Y NYYYY [email protected] Rio de Janeiro www.expressonepomuceno.com.br Source: Revista Tecnologística - June 2008 (NF) = Data not supplied 4 ©Copyright 2008 Armstrong & Associates, Inc. Source: RevistaTecnologística -June2008 (NF)= Data notsupplied g adalberto@ Gold ArmazénsLo [email protected] Isa.lo Provider/Phone/E-mail/Website Ipiran Wa g www. g g Gtech TransportesandLo [email protected] www. oldencar Id-lo [email protected] marketin atlo atlo comercial@ibllo www.ipiran [email protected] Renata. marketin g g www. Kar Intermodal BrasilLo g g g tech@ [email protected] www. www. ner.cardoso@ www. www. www. ranport@ www.id-lo www.ibllo istica@ipiran old@ www.flyexpress.com.br www.flexsil-tad.com.br www. www. g g g www. www.carvalho.com.br Godoy andBaptistella g g ID doBrasilLo [email protected] www.in-haus.com.br www.irapuru.com.br Granport Multimodal Grupo FasterBrase g g istica@ istica@ a www.fiorde.com.br istics@id-lo boperadorlo www. a RioArmazéns Gerais rupofasterbrasex.com.br Q g (11) 3218-811 (11) 2696-223 (11) 4781-015 (54) 2101-330 (11) 6488-203 (11) 4527-669 (11) 6488-203 (11) 2133-880 (11) 2197-888 (11) 2195-940 (21) 2775-171 (11) 3809-340 (11) 3760-900 (11) 3538-265 (11) 4772-800 (41) 3227-870 (13) 3273-512 (11) 3902-313 (21) 2103-810 (81) 3323-000 g (11)4795-700 Gefco Lo Gafor Lo g g g g g g boperadorlo Golden Car uímica ArmazénsGerais g g techlo j g Gat Lo Julio Simoes oldlo o@ oldlo uliosimoes.com.br techlo oldencar Fly Express Grupo Beta omes@ Grupo DS g g atlo atlo g @ g rupobeta.srv.br @ rupodsr.com.br In-Haus ranport.com.br Irapuru g j Flexsil Fiorde g g g g g uliosimoes.com.br g efco.com.br g aquimica.com.br g ranport.com.br oldencar atlo atlo g g g rupobeta.srv.br g g istica.com.br istics.com.br g istica.com.br istica.com.br ística eDistribui g istica.com.br istica.com.br g g g istica.com.br g g g ística g istica.com.b g rupodsr.com.br istica.com.b aquimica.com.br ística g g ística g efco.com.br g istics.com.b istica.com.b istica.com.b istico.com.br R g o.com.br g g ística o 0 istico.com.br 2 0 7 0 8 0 5 0 0 0 5 0 5 9 9 3 3 0 0 6 g g ística o.com.br x g ística r r r r r ç ão 2Tasot1,0 250 60 Y Transport 14 11,000 Transport 52 1Tasot50Y 580 Transport 11 2Tasot50N670 N 500 Transport 22 5Tasot10Y22 Y 180 Transport 15 3Csos50Y80 Y 500 Customs 23 11 rnpr 0N7 N Brasken; Coca-Cola;Vale 300 80 9 Y Transport 7 4,600 Transport 7 7 rnpr 3Y3 Y 33 Transport 4 rnpr 2 S 0122 ISO9001 325 6 Transport 9 rnpr 6 Agripec;BASF; Dow 9 Y 269 8 Transport 8 9 9 1 rnpr 3 9DuPont; Unibanco;Wal-Mart 89 Y 930 6 Transport 7 Years in Market Provisions of Distribution Automotive Outsourced Chemicals Operator Operator Operator Maritime Operator Operator Operator Logistics Logistics Logistics Industry Services Logistic Logistic

Origin of Business ,0 Carrefour;Danone;LeroyMerlin 5 Y 1,200 9 Cocelpa;GrupoPSA;Timken 6 Y 396 2 0Adams;PepsiCo;SempToshiba 20 N 221 5 4Braskem;Ford;Monsanto 14 Y 750 1 9 Y 714 0N 70 0Y12 Y 40 9Y8 rc oBai;CN smnsMtl,Idsra,Ceias2 1N 41 29 Metals,Industrial,Chemicals Armco do Brasil;CSN;Usiminas 80 Y 29 1Y9Agripec;BASF;Monsanto 9 Y 21 # of Employees 9001:2000 ISO Certifications 14 55 39 # of Contacted Customers AstraZeneca; Bayer;Boehringer Evonik Degussa;InvistaBrasil; Petróleo Ipiranga;ShellBrasil; Editora Abril;Planeta; Adria Alimentos; Petrobras; Brasilata; Cia.Providencia; Dana Albarus;Randon; Suzano Petroquímica Valvoline Cummins Suspensys Ingelheim Unilever Kellogg Rexam NF NF NF NF NF Main Customers Hazmat, Pharmaceuticals, Industrial Nutrition, Bevera A Nutrition, Automobile,Lubricants, Hygiene andCleaning,Healthcare Nutrition, Beverages,e-Business, Automotive, Hazmat,Electronics, utomotive, Bevera Nutrition, HygieneandCleaning, Pharmaceuticals, IronandSteel, Nutrition, Beverages,Household Automotive, AgriculturalInputs, Household Products,Electronics Nutrition, Automotive, Ironand Institutions/Banks, Chemicals, Nutrition, Beverages,Tobacco, uooie eas nutil37 Automotive, Metals,Industrial Nutrition, Beverages,Hazmat, Pharmaceuticals, Promotional giutrlipt,Ceias6. 1N 31 67.3 Agricultural inputs,Chemicals Paper andCellulose,Plastics, Cosmetics, Pharmaceuticals, Industrial Inputs,Paperand Industrial inputs,Packaging Pharmaceuticals, Paperand Forest andPaperProducts Products, Electronics,IT Automotive, Cosmetics, Cosmetics, Fragrances, Cosmetics, Electronics, Nutrition, IT,Financial Inputs, Chemicalsand Electronics, Graphics, Publishing/Printing Pharmaceuticals Petrochemicals Petrochemicals Steel, Minerals Lubricants Chemicals Materials Cellulose Cellulose Tobacco Hazmat Retail g

es, Toys,Cement, Main Industries Served g es, Electronics, 5 9. 67Y 26.7 199.4 951. N 14.7 49.5 N 26 33.7 5 3Y 23 952 0 5Y 25 400 0 0N 10 200 4.5 . N 8 5.5 NF NF FN N NF NF F2 N 25 NF 756N 5.6 47 52 N 20 25 04 Y 40 70 21 N 19 22 82 N 25 18 82 N 24 78 Annual Gross Revenue (R$ Millions) FN NF N NF 2N 22 N 31 Growth in Revenue (%) 2006/2007

Own Offices Abroad 8005,0 0 50,000 88,000 2500 42,500 0 27,764 0 57,500 6005000 5,000 56,000 0 15,000 72,000 0 10,000 0000 20,000 8,000 24,400 5000 15,000 0 20,000 0 62,825 68030001,000 0 3,000 26,800 ,0 2000 22,000 5,000 ,0 0 1,500 ,0 ,0 0 4,000 7,500 NF FN FN NF NF NF NF NF 5000 85,000 0 8,0 0 187,000 0 0000 70,000 0 Own

0 Customers (in house) Warehousing Space(m 0 0 NF 0 0 0 0 0 7104,0 3 48,000 27,100 900 0 0 0 0 0 Bonded 1,000 m 260 m 5,0 0,0 9 307,500 250,000 0 8108,6 00 10 82,864 58,100 0 0006,0 8 62,500 20,000 0 0 000150001 1 i 2mil 210mil 12 0 135,000 50,000 0 0 0 2004,0 4 44,400 12,000 0 0005,0 2NF 22 207.6mil 30.8mil 6 4 57,000 11 30,000 162,000 0 75,000 0 ,0 ,0 1 2,500 1,000 0 0,0 7,0 0 NF 300 5 N 370,000 0 300,000 3 0 83,825 1,325 0 2,0 3,0 1 435,000 423,500 0 Refrigerated ³ ³ 2 3,0 6,0 6 268,000 130,000 ) 30016008 106,000 33,000 2 55,000 45,000 1004,0 7 41,000 21,000 50010003 100,000 85,000 60016804 126,800 96,000 NF 8,0 0 187,000 0 Patio NF NF ©Copyright 2008Armstrong & Associates, Inc. Total Total Warehouses F0 NF FN NF NF NF Own 4 3 . i 480mil 1.4mil 0 0 2 8 0 14ml300mil 11.4mil 8 . i 120,000 0 3.4mil 0 0 2 0 33mil 500 0 4 Customers (in house) 79ml78.5mil 27.9 mil 8 i 216mil 285 mil 73.4mil 288 mil 9mlNF 39 mil 0ml138mil 20 mil Total Volumeof Goods Handled NF NF F140mil NF NF NF F13.2mil NF NF Items/Year NF NF NF NF NF NF NF Weight (t)/Year Tracking Technology Services Offered Transportation Technology Rotating Satellite Phone Coverage in the National Territory Fleet Fleet Fleet Warehousing Inventory Control Packaging Kitting Outsourcing Mgmt. Pallet Cross-Docking JIT Customs (Imports/Exports) Reverse Logistics Tax Support Project Development Monitor Performance Supply Coordination Distribution Door-to-Door Transfer Milk Run Intermodal Management & Simulation Software Optimization WMS TMS ERP Consultation Internet Phone Consultation Provider/Phone/E-mail/Website Own Transport Fleet Warehousing TM Distribution Own Outsourced Own Outsourced Own Outsourced AbFiorde L í i (11) 3218-8116 All of the National Territory All of the National Territory Y Y N YYYYYNYNYYNNYNYYYYYNNNNN Y YYYYY [email protected] www.fiorde.com.br Flexsil (11) 3902-3130 South, Greater Sāo Paulo South, Greater Sāo Paulo YYYYYYNYYNYYYYNNYNYYYYYYYNN Y NYNNY www.flexsil-tad.com.br Fly Express (81) 3323-0000 South, North, Northeast North, Northeast N N Y N Y N N Y YYYYYYYNYYYYYYYYYYY N YYYYY [email protected] www.flyexpress.com.br Gafor Logística (11) 6488-2033 All of the National Territory All of the National Territory YYYYYYYYYNYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.gatlogistica.com.br Gat Logística (11) 6488-2033 Southeast, Greater Sāo Paulo, Southeast, Greater Sāo Paulo YYYYYYNYYYYYYYYYYYYYYYYYYYY Y YYNYN [email protected] Greater Rio de Janeiro www.gatlogistica.com.br Gefco Logística (21) 2103-8109 South, Southeast, Greater Sāo All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYNN [email protected] Paulo, Greater Rio de Janeiro www.gefco.com.br Godoy and Baptistella South, Southeast, West- (11) 4527-6699 Central, Northeast, Greater Southeast YYYYYN YN YYNNYNNNYYYYNYYNYYN N YYNNY [email protected] Sāo Paulo, Greater Rio de www.gboperadorlogistico.com.br Janeiro Gold Armazéns Logística e Distribuição (11) 4781-0155 Greater Sāo Paulo All of the National Territory N N NF N Y N Y YYYYYYYNNYYYYNYYYYNN N YNNYN [email protected] www.goldlogistica.com.br Golden Cargo Southeast, West-Central, Southeast, West-Central, (11) 2133-8800 North, Northeast, Greater Sāo North, Northeast, Greater Sāo YYYYYY YYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.goldencargo.com.br Paulo, Greater Rio de Janeiro Paulo, Greater Rio de Janeiro Granport Multimodal (13) 3273-5125 South, Southeast, North, South, Southeast, North, NNNNNNNYYYYNYNNNYYYYYYYYYNY N YYYYY [email protected] Northeast, Greater Sāo Paulo Northeast, Greater Sāo Paulo www.granport.com.br Grupo Beta (11) 3538-2650 All of the National Territory All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.grupobeta.srv.br Grupo DSR (41) 3227-8700 All of the National Territory All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.grupodsr.com.br Grupo Faster Brasex (11) 4772-8000 Greater Sāo Paulo All of the National Territory Y N N Y Y Y Y YYYYYYYNNYYYYYYYYYNY N YYYYN [email protected] www.grupofasterbrasex.com.br Gtech Transportes and Logística (11) 3760-9005 All of the National Territory All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.gtechlogistica.com.br ID do Brasil Logística Southeast, West-Central, (11) 3809-3400 Greater Sāo Paulo, Greater N NNNNNNNYYYYYYYYNYYYYNNNNNNN Y YNYYN [email protected] www.id-logistics.com.br Rio de Janeiro In-Haus (11) 2197-8888 All of the National Territory N NNNNNNNYYYYYYYYNYYYYNNNNNNN N YNYYN [email protected] www.in-haus.com.br Intermodal Brasil Logística (11) 2696-2230 South, Southeast, North, All of the National Territory YYYYYY Y YYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] Northeast www.ibllogistica.com.br Ipiranga Química Armazéns Gerais (11) 2195-9407 South, Greater Sāo Paulo, All of the National Territory N N Y N Y NNFYYYNYYYNNYNYYNYYNYNN Y YNYYN [email protected] Greater Rio de Janeiro www.ipirangaquimica.com.br Irapuru (54) 2101-3300 South, Southeast, Greater Sāo South, Southeast, Greater Sāo YYYYNNYYYYYYYYYYYYYYYYYYYYY Y YYYYN [email protected] Paulo, Greater Rio de Janeiro Paulo, Greater Rio de Janeiro www.irapuru.com.br Julio Simoes (11)4795-7000 Southeast All of the National Territory YYYYYYYYYNNYYYYYYYYYYYYYYYY Y NYYYY [email protected] www.juliosimoes.com.br Karga Rio Armazéns Gerais (21) 2775-1712 Greater Rio de Janeiro Southeast YNNYNYN YYYYYYYYYYYYYYYYYYYY Y YNNYY [email protected] www.carvalho.com.br Source: Revista Tecnologística - June 2008 (NF) = Data not supplied 6 ©Copyright 2008 Armstrong & Associates, Inc. Source: RevistaTecnologística -June2008 (NF)= Data notsupplied www.mesquitasolucoeslo [email protected] Provider/Phone/E-mail/Website comercial@linkerslo Limeira Lo [email protected] Roseli.corre www.libraportcampinas.com.br [email protected] mesquite@mesquitalo Info.brazil@kuehne-na g www.keeperslo comercial@lsilo comercial@mestralo www.limeiralo [email protected] www.linkerslo www.martin-brower.com.br rupolclo g metrolo lo M3 ExcelênciaemLo [email protected] rupoluft@ www.katoennatie.com.br www.kadima-ktt.com.br www.lsilo www. [email protected] g www.mestralo www.mclaneco.com.br www. www.metrolo www.lo Metropolitan Lo lo istock@lo [email protected] www.kr-portal.com www.lo www.localfrio.com www.kway.com.br g Keepers Lo [email protected] www.mrs.com.br KTandT Lo McLane doBrasil Linkers Lo www.m3.com.br Kuehne +Na Lo (19) 2116-155 (11) 4582-238 (12) 3632-706 (11) 4143-740 (11) 4225-580 (11) 6802-200 (11) 4688-002 (11) 3046-466 (11) 4151-903 (11) 3687-280 (11) 4358-700 (41) 3204-448 (21) 3325-612 (11) 4141-282 (81) 2122-007 (11) 3037-330 (11) 6412-303 (11) 3648-840 (11) 2108-880 (19) 3322-010 (13) 3209-600 his@lo Martin-Brower MRS Lo Luft Lo Katoen Natie LSI Lo K-Way Brasil g g LC Lo g g g Mestra Lo g ística AmazénsGerais rupolclo Lo @ @metrolo LibraPort Mesquita his Lo g Localfrio rupoluft.com.br g [email protected] g g g istock.com.br g g rupoluft.com.br rupolclo istoc g g istica.com.br his.com.br g g g his.com.br istock.com.b g g g ística g g ística istica.com.br g istics istica.com.br ística g g istica.com.br istica.com.br g g ística g g ística ística g ística k .com.br .com.br istica.com.br g .com.br g g g g g ística .com.br el isticas.com.br g g 2 0 0 0 0 0 3 0 0 5 6 6 3 0 0 0 5 0 8 0 0 .com.br g g .com.br .com.br ística el.com r r r r 1.5 17 15 11 11 4Tasot160Y80 26 Y 1,600 Transport 14 21 0Tasot20Y3 Baxter;Benteler;Michelin 37 Y 270 Transport 10 46 11 12 1,068 PortOperator 11 6Tasot700 Transport 16 9 9 rnpr 3N7 N 23 Transport 6 8 r ot12N15Alcon;Dell; Motorola N 1.5 260 N Transport 152 8 DryPort 8 7 Years in Market Warehouse Warehouse Warehouse Warehouse Forwarder Clearance Operator Operator Operator Operator Operator Operator Logistics Logistics Logistics Logistics Logistics Logistics Logistics Customs Internal Railway General General General General Freight Carrier

Origin of Business ,0 22 Y 2,500 ,2 29 Y 2,020 ,9 S 014 CSN;Vale;Usiminas 40 ISO9001 3,591 5 Y 759 950 8 2Braslo;Ráscal;McDonald’s 32 N 489 5 6 CBD;Perdigao;Sadia 964 Y 852 0 NF Y 800 0 AmBev;PontoFrio;ZonaSul Y N 108 2 5 N 120 0 35 N 300 0 2Davene; Ducoco;Nestlé 12 N 200 80 2N 27 NF 42 # of Employees 9001:2000 9001:2000 SASSMAQ ISO 9001 ISO 9000 OHSAS 18001 14001 ISO ISO Certifications 65 32 5Claro; Philips;TIM 15 9 6 Alcon; Dell;Motorola 6 # of Contacted Customers A Fuchs Gewurze;NationalStarch; rcelor Mittal;FábricaCariocade Cia. BrasileiradeDistribuicao; Catalisadores; ForeverLiving Laticínios Frimesa;Overseas American Express;Diageo; Cadbury Adams;Procter& Caixa EconômicaFederal; Braskem; Solvay;Suzano AmBev; MagnetiMarelli; Dow Brasil;Wal-Mart Gamble; Unilever Petroquímica Importadora Petrobras Products PepsiCo Scania Sulzer NF NF NF Main Customers E-Business, Electronics, IT,Financial Automotive, Cement, IronandSteel A Ag Nutrition, Automotive,Hygieneand Cleaning, Petrochemicals,Graphics Agriculture, Automotive,Nutrition, and Cellulose,Chemicals,Flooring Nutrition, Beverages,Promotional Nutrition, Cosmetics,Hygieneand Nutrition, Automotive,Beverages, Nutrition, Pharmaceuticals,Paper Nutrition, Automotive,Cosmetics, Nutrition, Automotive,Cosmetics, Footwear, Cosmetics,Electronics, Automotive, HouseholdProducts, Nutrition, Cosmetics,Fragrances, giutr,Ntiin eeae 51.5 Agriculture, Nutrition,Beverages utomotive, Cosmetics,Healthcare, Electronics, Chemicals,Sporting Telecommunications, Chemicals Telecommunications, Chemicals Nutrition, Beverages,Footwear, Nutrition, Automotive,Hazmat, Nutrition, HouseholdProducts, Nutrition, Cosmetics,Financial riculture and A Institutions, Lubricants, Promotional Materials Cosmetics, Packaging Cleaning, Electronics Footwear, Chemicals Pharmaceuticals, IT, Pharmaceuticals, IT, Household Products Beverages, Hazmat Materials, Graphics Pharmaceuticals Pharmaceuticals Institutions Fragrances Beverages Packaging Chemicals Goods g

ricultural Inputs, Main Industries Served 7 ,0 06N 10.6 2,500 26.2 9 4Y 14 799 7 0N 30 170 . 2N 32 5.4 . 4N 14 4.1 F3 Y 30 NF NF FN N NF NF FN N NF NF FN Y NF N NF 19 NF NF NF F1 Y 15 NF FN N NF NF 03N 3 20 52 N 25 65 0 N 400 3 620N Annual Gross Revenue (R$ Millions) 0Y 20 2N 42 N 42 42

3N Growth in Revenue (%) 2006/2007

N Own Offices Abroad 0,0 0 105,000 9,0 0002002,0 ,0,0 ,2,0 141mlSU 7mil 1milSKUs 4 21 1,522,000 1,100,000 20,000 2,000 10,000 390,000 00030,000 10,000 1600 0 11,600 130,000 75,278 15,000 1,000 47,000 2000 32,000 0 11,000 11,086 12,000 53,000 0 15,000 200,000 42,200 9740125,858 0 19,744 8005200 5,240 48,000 0 30,000 580085,000 0 25,820 0500 40,570 ,0 250,000 1,000 ,0 0 6,500

0 Own 0,0 0 100,000 ,0 0 3,000 ,0 0 7,000 ,0 0 1,500

0 Customers (in house) Warehousing Space(m 0 ,0 000360011 65 milSKUs 18 1 306,000 50,000 5,000 0 000150020004 220,000 115,000 30,000 0 0 0 1,000 0 0 0 0 0 Bonded 93,150 m 3,000 m 400 m 800 m 5,142 0005,0 1 50,000 10,000 0 ,0 9604 19,600 8,000 0 21,000 0 0 0 0 1,0 4,0 1 143,000 113,000 0 0 0,0 4,0 5NF 15 1 445,000 300,000 0 0 0869,7 20 12 91,376 50,806 0 0,0 4,0 82 i 15mil 20mil 18 6 442,200 200,000 0 Refrigerated ³ ³ ³ ³ 2 5,0 7,7 4 273,278 150,000 4,7 8,7 F0 NF 286,477 140,875 0,0 5,0 01 10 254,500 200,000 ) 0003,0 1 31,000 20,000 40014805 134,820 24,000 ,0 ,0 4 8,500 2,000 ,1 9764 19,786 8,710 2002 32,000 0 2001 22,000 0 0,0 0 100,000 0 3205 53,240 0 Patio 6002 36,000

Own 1 4 0 0 0ml2mil 20mil 0 0 0 0ml51mil 10mil 0 14,000SKU 2 5 0 . i 100mil 1 6.5mil 0 . i 252.9mil 2.6mil 0 Customers (in house) 0. i 1.1mil 107.2 mil . i 94mil 2.2 mil 10 mil Total Volumeof Goods Handled 0 64mil 300 NF NF NF NF NF F1.5mil NF NF 0126.3mil 50 Items/Year s 3.75 mil 450 mil pallets NF NF NF NF NF NF NF NF Weight (t)/Year Tracking Technology Services Offered Transportation Technology Rotating Satellite Phone Coverage in the National Territory Fleet Fleet Fleet Warehousing Inventory Control Packaging Kitting Outsourcing Mgmt. Pallet Cross-Docking JIT Customs (Imports/Exports) Reverse Logistics Tax Support Project Development Monitor Performance Supply Coordination Distribution Door-to-Door Transfer Milk Run Intermodal Management & Simulation Software Optimization WMS TMS ERP Consultation Internet Phone Consultation Provider/Phone/E-mail/Website Own Transport Fleet Warehousing TM Distribution Own Outsourced Own Outsourced Own Outsourced AbKatoen L Natie í i South, Southeast, Northeast, (19) 2116-1550 Greater Sāo Paulo, Greater NF NNYNYNYYYYYYYYYYYYYYNYNNYNY N YYYYY [email protected] Rio de Janeiro www.katoennatie.com.br Keepers Logística (11) 4151-9030 All of the National Territory All of the National Territory NNNNNNNYYYYYYYNNYYYYYYYYYNN N YNNYN [email protected] www.keeperslogistica.com.br KTandT Logística (11) 4141-2828 South, Southeast, West- Greater Sāo Paulo Y Y NF Y Y NF NF Y YYYYYYNNYNYYYYYYYNN Y YYNYN Central, Greater Sāo Paulo www.kadima-ktt.com.br Kuehne + Nagel (11) 3037-3300 All of the National Territory All of the National Territory N N Y N Y N Y YYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.kr-portal.com K-Way Brasil (21) 3325-6125 Southeast, Greater Rio de N NNNNNNNYYYYYYYNNYYYYNNYYNNN Y YNNNN [email protected] Janeiro www.kway.com.br LC Logística Southeast, Northeast, Greater (11) 4143-7400 Sāo Paulo, Greater Rio de All of the National Territory YYYYYY Y YYYYYYYYNYYYYYYYYYYN Y YYYYY [email protected] Janeiro www.grupolclog.com.br LibraPort (19) 3322-0100 Southeast Southeast Y YYYYYYY YYYYYYYYYYYYYYYYYNY N YYYYY [email protected] www.libraportcampinas.com.br Limeira Logística Amazéns Gerais (81) 2122-0070 North, Northeast North, Northeast Y N N N Y Y Y YYYYYYYNNYNYYYYYYYNN N YYYYN www.limeiralogistica.com.br Linkers Logística South, Southeast, Northeast, (11) 6412-3033 Greater Sāo Paulo, Greater Southeast, Northeast Y N N YYYYY YYYYYYYNYNYYYYNYYNY Y YYYNY [email protected] www.linkerslogistica.com.br Rio De Janeiro Localfrio (11) 3046-4666 South, Southeast, Greater Sāo South, Southeast, Greater Sāo YYYYYYYYYYYYYYNNNNYYYYYYYNY N YYYYN [email protected] Paulo, Greater Rio De Janeiro Paulo, Greater Rio De Janeiro www.localfrio.com Loghis Logística (12) 3632-7066 South, Southeast, Greater Rio NF NNNNNNNYYYYYYYNNNYYYNYNNNNN Y YNYYN [email protected] de Janeiro www.loghis.com.br Logistock (41) 3204-4485 South South NNYNYNY YYYYYYYNNYYYYYYYYYNN N YYNYN [email protected] www.logistock.com.br LSI Logística (11) 4225-5800 All of the National Territory NF NNNNNNNY YYYYYNYNYYYYYYNNNYY Y YYYYY [email protected] www.lsilogistica.com.br Luft Logistics (11) 4688-0020 All of the National Territory All of the National Territory YYYYYYNFYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.grupoluft.com.br M3 Excelência em Logística (11) 4582-2383 Southeast, Greater Sāo Paulo Greater Sāo Paulo Y N Y N Y N Y YYYYYYYYNYYYYYYYYYYN Y YYNYN [email protected] www.m3.com.br Martin-Brower (11) 3687-2800 South, Southeast, Northeast, All of the National Territory YYYYYYYYYYNYYYYYYYYYYYYYYNY N NNYYN [email protected] Greater Sāo Paulo www.martin-brower.com.br McLane do Brasil (11) 2108-8800 All of the National Territory All of the National Territory N N YNYN YY YYYYYYNYYYYYYYYYYYY Y YYYYY [email protected] www.mclaneco.com.br Mesquita (13) 3209-6000 Southeast Greater Sāo Paulo YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.mesquitasolucoeslogisticas.com.br Mestra Log (11) 4358-7000 Greater Sāo Paulo Greater Sāo Paulo YYYYNYYYYYYYYYYNYNYYYYYYYNY Y YYYNN [email protected] www.mestralog.com.br Metropolitan Logística South, Southeast, Northeast, South, Southeast, Northeast, (11) 6802-2000 Greater Sāo Paulo, Greater Greater Sāo Paulo, Greater YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] Rio de Janeiro Rio de Janeiro www.metrolog.com.br MRS Logística (11) 3648-8402 Southeast South, Southeast Y N N Y N N N YYNNYNYNNYNYYYYYYYNY Y YNYYN [email protected] www.mrs.com.br Source: Revista Tecnologística - June 2008 (NF) = Data not supplied 8 ©Copyright 2008 Armstrong & Associates, Inc. Source: RevistaTecnologística -June2008 (NF)= Data notsupplied Mariateresa.Freita Provider/Phone/E-mail/Website SAG Arm.GeraiseTransp.DeCar faleconosco@mslo Norlo Sada TransporteseArmazena [email protected] www.skflo [email protected] diretoria@nbflo A [email protected] [email protected] Panzan ArmazénseLo rivas@quick-lo www.rapidaocometa.com.br Robinson Lo www.quick-lo www.mslo thia [email protected] lessi. www.penskelo Mslo Penske Lo cemacaes@norlo www.nbflo www.rodobor www.chrobinson.com.br g www.omnitrans.com.br [email protected] www.rapido900.com.br Gilberto@satlo [email protected] [email protected] www.schenker.com.br SKF Lo NordibeLo [email protected] www.panzan.com.br www.panalpina.com www.setima.com.br www.rota90.com.br www.sa [email protected] www.satlo sa g [email protected] www.ryder.com.br Schenker doBrasil www.sada.com.br www.norlo (11) 4360-6300 o@rodobor g g Rapidāo Cometa Sétima doBrasil www.recall.com 0800-7273225 (11) 2632-090 (81) 3464-528 (47) 3405-850 (11) 3318-900 (62) 3546-440 (11) 2165-570 (62) 3597-253 (11) 4448-864 (12) 4009-940 (43) 3521-495 (11) 2195-363 (13) 3797-700 (81) 3243-880 (11) 3045-512 (11) 2152-550 (11) 5644-950 (31) 3071-960 (62) 3269-180 (11) 3306-005 Recall doBrasil Ryder Lo Q g abriel.bra Solu NBF Lo @sa uick Lo Rodobor Rápido 900 Omnitrans Panalpina g g Rota 90 g Satlo isticsservices.com istics Service g g ç lo g g g istics doBrasil ões Lo lo lo ística doBrasil g istica.com.br g g g g g g g g @chrobinson.com g g istica.com.br g g istica.com.b g ística istica.com.br ística Inte g lo g istica.com.br g .com.br .com.br ística ística .com.br g g g es.com.br g istics.com .co.br g es es.com.br [email protected] g .com.b istica.com.br .com.br g ísticas 2 0 0 0 0 0 0 0 6 0 0 8 0 1 0 0 0 0 0 5 0 g r ística s r g g rada r r ens g as 2.5 3Tasot106Y 1,036 Transport 13 11 1Tasot864 Transport 31 2Tasot28Y6BASF;Tintas Coral;Ultra 6 Y 288 Transport 12 N 14 Transport 14 8Csos20Y200 Y 200 Customs 18 11 35 11 30 Y 2,000 Transport 11 2Idsra ,0 4 5 Y N 1,000 Industrial 85 12 Transport 20 5 rnpr 1 LG;Nissin-Ajinomoto; Itautec 6 Y 113 Transport 3 rnpr 0FEMSA;Milenia; Monsanto 30 Y 7 Transport 6 8 8 4 8 9 Years in Market International Transport & Distribution Warehouse Forwarder Document rnpr 2 3 Y 120 Transport Beverage Operator Operator Operator Operator Operator Logistics Logistics Logistics Logistics Logistics Logistics General Freight Mgmt. Origin of Business ,0 NF N 1,104 ,0 0Hewlett-Packard; Samsung;Sony 20 N 2,201 0 8 N 200 400 FNNF N NF 70 4N23 N 84 8N11 N 48 0N21 N 70 3N8CADanaven;FilóSA;PepsiCo 8 N 13 # of Employees 9001:2000 9001:2000 9001:2000 ISO ISO ISO Certifications NF FZF;Scania;Brose NF 50 Ericsson;IBM;Nokia 8 4 # of Contacted Customers Invista doBrasil;LaboratóriosB. Tribunal deJustiçadoEstado J. Macedo;Johnson&Johnson; Cecil; Facchini;TropComércia Fiat Automóveis;Unidas;CNH Caixa Econômica Federal;Pro Azeitonas Rivoli;Schincariol; Bacardi; Johnson&Johnson; Bradesco; MarítimaSeguros; Femepe; Frinscal;Procter& Secretaria deAducacaodo General Motors;Toyota; Bank; ViaTelecom Braun; Siemens Latin America Estado dePE Volkswagen SKF; Mirka Sāo Paulo Unilever Exterior Gamble Osram NF NF NF Main Customers Electronics, SteelandIron,Hy Ag Hygiene andCleaning,Promotional od uooie eeae,Ty 0N 20 5 Food, Automotive,Beverages,Toys Agriculture andFood,Automotive, Automotive, IT,IndustrialInputs, Agriculture, Automotive,Hazmat, Automotive, Pharmaceuticals, IT, Automotive, Electronics,Hygiene Industrial andInputs, Telecommunications, Household Automotive, OilandGas,Steel, and Cleaning,Chemicals,Tires riculture andA Chemicals andPetrochemicals Pharmaceuticals, Hygieneand Graphics, Publishing/Printing Food, Automotive,Cosmetics, Food, Beverages,Electronics, iaca ntttosBns1. 22N 12.2 12.4 Financial Institutions/Banks Food, Beverages,Cosmetics, Food, Beverages,Household Automotive and Automotive Cosmetics, Pharmaceuticals Footwear, Pharmaceuticals, Electricity, Pharmaceuticals Automotive, e-Business,IT, Beverages, SteelandIron, Food, Hazmat,Lubricants, Industrial and Products, Electronics,IT Automotive, Electronics, Promotional Materials Nutrition, Cosmetics, Agriculture andFood Household Products, Telecommunications Pharmaceuticals, IT, Textiles, Apparel Pharmaceuticals and Cleaning,IT Parts/Pieces Parts/Pieces Electronics Industrial Materials Products Cleaning g

ricultural Inputs, Main Industries Served 9 g iene 1. 5N 15 115.6 557 N 78 15.5 511 N 12 15.1 6 2Y 72 562 8 0Y 20 181 1.9 . . N 5.4 5.7 6.3 NF NF F2 N 20 NF FN N NF NF F2 N 23 NF FN N NF NF NF F1 Y 13 NF F2 Y 25 NF F3 N 34 NF

2NFY Annual Gross Revenue (R$ Millions) 29.3 FN NF 5Y 15 5N 15 Y 33 Growth in Revenue (%) 2006/2007

Y Own Offices Abroad 0,0 3,0 000100m 6,0 0,0 42 F500mil NF 25 34 600,000 165,000 1,000m³ 10,000 135,000 300,000 0 110,000 30,000 150,000 5000 0 15,000 10,000 20,000 00046,000 30,000 NF 90,000 2000 12,000 0 50,000 5000 25,000 0 19,000 20,000 0 10,000 244,115 72,732 3501,0 0 16,000 23,500 ,4 0 5,740 0 7,000 ,0 ,0 0 0 8,000 19,200 4,000 0 5,028 FNF NF FN FN NF NF NF NF NF 8 0 484 0 Own

Customers (in house) Warehousing Space(m FN NF NF NF 0 0 0 0 0 0 0 0 0 5001,0 5004 75,000 10,000 15,000 0 0 0 Bonded 0 5,0 3,0 19 i 24mil 96mil 11 9 330,000 150,000 0 ,0 5002 15,000 3,000 0 0 3004,0 3 48,000 33,000 0 5,0 6,0 4 260,000 150,000 0 1,0 0,0 23 12 300,000 210,000 0 03637231 0 i NF 706mil 1 11 397,203 80,356 0 ,0 ,4 3 9,740 4,000 0 5004,0 9 45,000 15,000 0 ,0 0005 30,000 5,000 0 0002,0 1 27,000 20,000 0 ,0 300N FNF NF NF 13,000 3,000 0 00019002 129,000 90,000 0 ,0 7002 17,000 5,000 0 0 Refrigerated 2 ) 6007 76,000 0 0 4282 24,228 0 9001 F3 i 4.5mil 30mil NF 11 39,000 0 Patio 484 NF NF ©Copyright 2008Armstrong & Associates, Inc. Total Total Warehouses F6 NF FN NF NF NF 05ml240.3mil 5mil 10 0 Own 0mlSU 1.25mil 10 milSKUs 8 8ml60mil 18mil 0 0 0 . i 63.5mil 2.2mil 3 5 960mil 150 0 ,0 43mil 4,500 0 0 . i 12.8mil 4.5mil 0 i 900mil 2mil 0 18ml2.5mil 11.8mil 2 2 Customers (in house) 2.1 milm 900 mil Total Volumeof SKUs Goods Handled NF NF F920mil NF NF Items/Year ³ 40.3 mil 40 mil NF NF NF NF NF Weight (t)/Year Tracking Technology Services Offered Transportation Technology Rotating Satellite Phone Coverage in the National Territory Fleet Fleet Fleet Warehousing Inventory Control Packaging Kitting Outsourcing Mgmt. Pallet Cross-Docking JIT Customs (Imports/Exports) Reverse Logistics Tax Support Project Development Monitor Performance Supply Coordination Distribution Door-to-Door Transfer Milk Run Intermodal Management & Simulation Software Optimization WMS TMS ERP Consultation Internet Phone Consultation Provider/Phone/E-mail/Website Own Transport Fleet Warehousing TM Distribution Own Outsourced Own Outsourced Own Outsourced MsloAbg Soluções L Lo íg iísticas (62) 3597-2530 West-Central, Northeast All of the National Territory NNNNNNNYYYYYYYYYYYYNNNNNNNN N YNNNN [email protected] www.msloglogistica.com.br NBF Logística South, Southeast, West- (11) 4360-63000 South, Southeast, West- Central, Greater Sāo Paulo, NNNNNNYY YYYYYYYNYNYYYYYYYYN N YNYNN [email protected] Central, Greater Sāo Paulo Greater Rio de Janeiro www.nbflogistica.com.br Norlog Nordibe Logística Integrada (81) 3243-8800 Northeast Northeast YNN YYYYYYYYYYYNYYYYYYYYYYNY N YYNYN [email protected] www.norlog.co.br Omnitrans (13) 3797-7000 South, Southeast, Greater Sāo Greater Sāo Paulo YYYYYYYYNNNNYYNYYNYYYYYYYYY Y NYYYY [email protected] Paulo www.omnitrans.com.br Panalpina (11) 2165-5700 All of the National Territory All of the National Territory N N Y N Y N Y YYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.panalpina.com Panzan Armazéns e Logística (11) 2152-5500 South, Southeast, Greater Sāo Southeast NNNNNNNYYYYYYYYNYYYYYYYYYYY Y YYYNN [email protected] Paulo, Greater Rio de Janeiro www.panzan.com.br Penske Logistics do Brasil (11) 3306-0051 All of the National Territory All of the National Territory N N Y N Y N Y YYYYYYYYYNYYNYYYYYYY Y YYYYY [email protected] www.penskelogistics.com Quick Logística Southeast, West-Central, Southeast, West-Central, (62) 3269-1800 North, Northeast, Greater Sāo North, Northeast, Greater Sāo YYNYNYNYYYYYYYYNYYYYYYYYYNN Y YYNYY [email protected] www.quick-logistica.com.br Paulo, Greater Rio de Janeiro Paulo, Greater Rio de Janeiro Rapidāo Cometa (81) 3464-5288 All of the National Territory All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYN www.rapidaocometa.com.br Rápido 900 Southeast, Northeast, West- Southeast, Northeast, West- (11) 2632-0900 Central, Greater Sāo Paulo, Central, Greater Sāo Paulo, YYYYYYYYYYYYYYNNYYYYYYYYYYY Y YYYYY [email protected] www.rapido900.com.br Greater Rio de Janeiro Greater Rio de Janeiro Recall do Brasil 0800-72732255 All of the National Territory All of the National Territory Y NF NF Y NF NF NF Y NYNNNNNNNNNNNNNNNNN N NNNNN [email protected] www.recall.com Robinson Logística do Brasil (11) 3045-5120 All of the National Territory All of the National Territory N N Y N Y N N YYYYYYYYYYYYYYYYYYYY Y NYNYY [email protected] www.chrobinson.com.br Rodoborges South, Southest, West- South, Southeast, Northeast, (11) 2195-3636 Central, Northeast, Greater Greater Sāo Paulo, Greater YYNYNYNYYYYYYYNNYNYYYYYYYNN Y YYYYY [email protected] Sāo Paulo, Greater Rio de Rio de Janeiro www.rodoborges.com.br Janeiro Rota 90 (43) 3521-4950 South, Northeast All of the National Territory YYYYYNNYYNNNNNNYYNNNYYYYYNN Y NNNYN [email protected] www.rota90.com.br Ryder Logística (11) 5644-9500 South, Southeast, West- All of the National Territory YYYYYNNYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] Central, Greater Sāo Paulo www.ryder.com.br Sada Transportes e Armazenagens (31) 3071-9600 Southeast, Greater Sāo Paulo, All of the National Territory YYYYYYYYYYYYYNYYNYYNYYYYYYY Y YYYY [email protected] Greater Rio de Janeiro www.sada.com.br SAG Arm. Gerais e Transp. De Cargas (47) 3405-8500 South South YYYYYYYYYNNNYYNNNYYNNYNNYYN Y YYNYN [email protected] www.saglog.com.br Satlog (12) 4009-9400 North, Southeast, Greater Sāo All of the National Territory YYYYYYYYYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] Paulo www.satlog.com.br Schenker do Brasil Northeast, Southeast, Greater (11) 3318-9000 South, Greater Sāo Paulo, Sāo Paulo, Greater Rio de NNNNNNNYYYNYYYYYNNYYNYYYNNY N YNNYN [email protected] Greater Rio de Janeiro www.schenker.com.br Janeiro Sétima do Brasil West-Central, Northeast, (62) 3546-4400 West-Central, Greater Sāo North, Southeast, Greater Sāo NNYNYNYY YYYYYYNNYNYNYYYYYNN N NYYYY [email protected] Paulo www.setima.com.br Paulo SKF Logistics Services (11) 4448-8642 Greater Sāo Paulo All of the National Territory NNNNYNNYYYYYYYYYYNYYYYYYYYY Y YYYNN [email protected] www.skflogisticsservices.com Source: Revista Tecnologística - June 2008 (NF) = Data not supplied 10 ©Copyright 2008 Armstrong & Associates, Inc. Source: RevistaTecnologística -June2008 (NF)= Data notsupplied Universal ArmazénsGeraiseAlfande Marketin Pro Paulo.menezes@tradelo Provider/Phone/E-mail/Website Lo [email protected] jg Marcelo.sousa@t Standard Lo g [email protected] g Transporte eComércioFassina ramacao.dia@supportcar or [email protected] j www.tar [email protected] info@tar Transportadora GrandeABC www.smartlo oseluis@standardlo Comercial. www.tradelo www.supportcar UPS- UnitedParcelServic commercial@t [email protected] Transportadora Transmiro [email protected] www.standardlo g www.transcastro.com.br www.wilsonsons.com.br www.ultracar Te Transcastro Multimodal www.transmiro.com.br www.stocktech.com.b g Transportadora Sulista www.t [email protected] ulho@smartlo Wilson, Sons Lo te [email protected] www.fassina.com.br .ultracar www.usifast.com.br www.sulista.com.br www.te [email protected] talo www.t g www.talo g www.cbce.com.b www.tora.com.br ma Gest www.vix.com.br Tar (41) 3371-820 (11) 2142-900 (11) 3177-621 (27) 2125-180 (12) 4009-880 (41) 2118-280 (11) 4360-600 (13) 3298-300 (41) 3525-822 (31) 2191-246 (11) 5694-660 (21) 3504-413 (31) 3399-870 (11) 4346-250 (31) 2104-640 (11) 3393-151 (11) 4067-717 (12) 3955-460 (51) 3470-860 (81) 3527-110 (19) 2101-751 ma@te Smart Lo Trade Lo Support Car www.ups.com Tora Lo Vix Lo TA Lo g g g Stock Tech Ultracar TGestiona g @talo g g et-lo et-lo Usifast estiona.com.br et Lo ística eDistribui j g [email protected] g g abc.com.br g ma.com.br o@ultracar g g g g āo Lo g g ma.com.br g g g istica.com.br ística g istica.com.br g ística g g istics.com.b g estiona.com.br istics.com.b ística .com.br g abc.com.b .com.br ística ística g g istics o.com.br g istica.com.br g o g o.com.br g g .com.br g g ística o istica.com.br ística 6 0 1 0 1 5 0 0 0 0 0 1 6 1 0 9 1 1 8 0 0 .com.br r g r g r o.com.br o.com.br e r r ç r r r ão g r ados 20 2Tasot60YN Friboi; Iódice;Vale NF Embraer; Monsanto;LG Y 70 600 N Transport 100 12 Customs 12 0Tasot12Y5 Y 182 Transport 10 0Tasot7 6 Y 71 Transport 10 11 2Tasot11Y22 Y 42 141 Transport 22 0Tasot2 0Alcatel; Souza Cruz;Syngenta 20 Y 25 Transport 10 10 0FrinTae209Y 2,039 ForeignTrade 10 4Tasot240 Transport 14 3Tasot15Y17 Y 125 Transport 13 14 0Tasot287YNF Y 2,817 Transport 10 5 7 8 9 rnpr 5Y3 Y 25 Transport 4 7 Years in Market Refrigerated Transport & Transport & Passangers Warehouse Warehouse Warehouse Distributor Transport Beverage Operator Operator Operator Operator Operator Logistics Logistics Logistics Logistics Logistics General General General

Origin of Business ,0 N 2,300 1,187 ,0 2Aracruz Celulose;Petrobras;Vale 42 Y 5,200 7 Y 170 0 0Lenovo; Telefônica;Vivo 10 N 600 8 0 Alibem;Aurora;Seara 100 Y 780 640 7Y3BASF;Electrolux;GrupoM&G 3 Y 87 0N5Bunge;Grupo M&G;Unilever 5 N 20 0N7 N 30 # of Employees 14.000 CDIT 9001:2000 9001:2000 SASSMAQ ISO 9000 NBR ISO and ISO Certifications 4 Braskem; GrupoM&G;Oxiteno 340 9 Cenibra; Monsanto;Petroflex 191 0Ford;Mercedes-Benz;Toyota 30 2Danone;Garoto;Unilever 12 0Eaton;Flextronics;PPG 20 30 # of Contacted Customers Braskem; SaraLee;UsinaNova Aliança NavegaçãoeLogística; Benteler Automotive;Johnson Belgo ArcelorMittal;Gerdau CMA CGM;Daimler-Chrysler Amacóco; PastifícioSelmi; it ain smnsAtmtv,Io n te,Mnn 0 5N 25 205 Automotive,Iron andSteel,Mining Fiat; Maxion;Usiminas Açominas; Vallourec& Automotive; Unilever Reckitt Benckiser;TI Controls; Volvo Mannesmann América Socóco NF Main Customers Food, Automotive,Hazmat,Tobacco, and Cellulose, Petrochemicals,Steel Ag A Ag Automotive, PromotionalMaterials, Hazmat, HouseholdProducts,Iron Fragrances, HygieneandCleaning Automotive, Hazmat,OilandGas, Automotive, HouseholdProducts, Telecommunications, Electronics, e-Business, Telecommunications, Packaging, HygieneandCleaning Automotive, Beverages,Ironand utomotive, Cosmetics,Electronics, Automotive, Hazmat,Packaging, Chemicals, PaperandCellulose, Cellulose, Petrochemicals, Steel Food, Automotive,Hygieneand Consumer Electronics,Apparel, Steel, Industrialand Automotive, Mining, Paperand riculture, Pharmaceuticals, Paper riculture andA Chemicals andPetrochemicals Food, Beverages,Hygieneand Food, Automotive,Beverages, Food, Cosmetics,Electronics, Food, Beverages,Packaging, Food, Beverages,Hazmat, Iron andSteel,Industrial Electronics, Parts/Pieces giutr n od 77.5 Agriculture andFood Telecommunications Food, Hazmat,Tires, Household Products Chemicals, Textiles Industrial Inputs Pharmaceuticals Cleaning, Retail Parts/Pieces Parts/Pieces Healthcare and Steel Cleaning Hazmat g

ricultural Inputs, Main Industries Served 11 386.2 6. 5Y 35 860.6 93N N NF 99.3 N 15 21.5 56N N NF 15.6 6 8N 18 269 460 . N 6 6.1 NF NF FN N NF NF F66N 626 NF F7N 7 NF 16 03. Y 30.8 50 53 Y 37 85 14 74 N 40 17

5NFNAnnual Gross Revenue (R$ Millions) NF 2N 22 N 22 2N2,0 0 28,000 N 22 N 48 8N 38 3N 23 Growth in Revenue (%) 2006/2007

Y Own Offices Abroad (256,560 0,0 0 309,000 m 000210,000 60,000 37,311 16,374 0 22,000 0004000 4,000 50,000 660NF 86,620 7103001,0 5,0 2,0 6 525,600 0 0 450,500 25,000 0 0 26 15,000 1,571,000 26,000 1,521,000 3,000 0 57,100 300,000 0 50,000 70092,000 77,000 0 38,000 0 38,700 35,995 0001,0 25,000 10,000 40,000 ,0 0 5,000 ,0 ,0 0 2,000 8,000 0 6,000 ,0 400 1,800 ³ liq.) 0 Own (206,000 m 75,000 ³ liq.) 0 Customers (in house) Warehousing Space(m 258,560 m 34,000 5005 6,0 3,0 6NF 16 4 733,000 564,000 56 55,000 ,7 5 0008,0 1 88,000 50,000 450 7,970 0 0 0 0 0 0 0 0 500034004 384,000 0 85,000 0 0 0 0 Bonded ³ 32,800 m 80,000 m 4,000 m 825 m ,0 4001 24,000 2,000 0 5,5 1,4 22. i 1.9mil 26.4mil 22 3 211,841 158,156 0 20,000 0 10017606N NF NF 6 177,690 91,070 0 0801,0 2 13,000 10,800 0 50010005 100,000 3 75,000 88,000 0 62,000 0 0 ,0 0001 10,000 5,000 0 0001,0 1 16,000 10,000 0 4,1 7,0 6 278,005 242,010 0 F1,0 7 10,000 NF 0 Refrigerated ³ ³ ³ ³ 2 0,0 7,0 3 175,000 100,000 ) 0004,0 3 48,000 20,000 00034005 384,000 80,000 4005 54,000 0 0 Patio (470,250 m 133,700 liq.) 0 ©Copyright 2008Armstrong & Associates, Inc. Total ³ Total Warehouses 810 NF 0 Own 3 82 135 2 0 0ml585.6mil 60mil 0 0 4 3 0 0 . i 1.1mil 5.7mil 1 0 0 3 i 282mil 130mil 0 1 8 380mil 488 0 . i 125mil 8.4mil 0 0 NF 500 1 Customers (in house) Total Volumeof Goods Handled NF NF NF F300mil NF F1.3mil NF NF F1.6mil NF 12mil NF NF NF Items/Year 279 milm NF NF NF NF NF NF NF NF Weight (t)/Year ³ Tracking Technology Services Offered Transportation Technology Rotating Satellite Phone Coverage in the National Territory Fleet Fleet Fleet Warehousing Inventory Control Packaging Kitting Outsourcing Mgmt. Pallet Cross-Docking JIT Customs (Imports/Exports) Reverse Logistics Tax Support Project Development Monitor Performance Supply Coordination Distribution Door-to-Door Transfer Milk Run Intermodal Management & Simulation Software Optimization WMS TMS ERP Consultation Internet Phone Consultation Provider/Phone/E-mail/Website Own Transport Fleet Warehousing TM Distribution Own Outsourced Own Outsourced Own Outsourced AbSmart Lo Lgística í i (31) 2104-6400 Southeast Southeast NNY NNNNYYYYNYYNNYYYYNNYNNNN Y YNNNY [email protected] www.smartlogistica.com.br Standard Logística e Distribuição (41) 2118-2800 South, Southeast, Greater Sāo NF NNYNYNYYYYYYYYYNYYYYYYYYYYY Y YYYYY [email protected] Paulo www.standardlog.com.br Stock Tech (41) 3525-8228 All of the National Territory All of the National Territory N N Y N Y N Y YYYYYYYYNYYYYYYYNNNN Y YNYYY [email protected] www.stocktech.com.br Support Cargo (11) 4067-7171 Greater Sāo Paulo Greater Sāo Paulo YYYYNNNYYNNYYYNNNNYYNNNYYYN N NNYYY [email protected] www.supportcargo.com.br TA Logística (19) 2101-7511 Northeast, Southeast All of the National Territory Y Y Y N Y Y Y YYYYYYYYYYYYYYYYYYYY Y YYNYN [email protected] www.talog.com.br Target Logistics (11) 2142-9009 West-Central West-Central YYN YYYYYYYYYYYNYYYYYYYYYYYY Y YYYYY [email protected] www.target-logistics.com.br Tegma Gestāo Logística (11) 4346-2500 Southeast, Greater Sāo Paulo All of the National Territory YYYYYYYYYYYYYYYNYYYYYYYYYYY Y YYYYN [email protected] www.tegma.com.br TGestiona (11) 3393-1511 South, Southeast, Greater Sāo Southeast, Greater Sāo Paulo YYYYYNYY YYYYYYNNYYYYYYYYYNY Y YYYYY [email protected] Paulo www.tgestiona.com.br Tora Logística (31) 2191-2466 South, Southeast, Northeast, Southeast, Greater Sāo Paulo YYYYYNYYYYNNYYYNYNYNYYYYYYY N NYYYY [email protected] Greater Sāo Paulo www.tora.com.br Trade Logística (81) 3527-1101 Northeast All of the National Territory N N Y N Y N Y YYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.tradelogistica.com.br Transcastro Multimodal (12) 4009-8800 South, Southeast South, Southeast YYYYYYYYYYYYYYYNYYYYYYYYYYN Y YYYYY [email protected] www.transcastro.com.br Transportadora Grande ABC (11) 4360-6000 Northeast, Southeast, Greater Northeast, Southeast, Greater YNNYYYYYYYYYYYYNYYYYYYYYYYN Y YYYYY [email protected] Sāo Paulo Sāo Paulo www.tgabc.com.br Transportadora Sulista (41) 3371-8200 South, Northeast, Greater Sāo N YYNYNYNYYYYYYYYNYNYYYYNYYYY N NNYYY Paulo, Greater Rio De Janeiro www.sulista.com.br Transportadora Transmiro (51) 3470-8600 South South YYYYYYYYYYYYYYYNYYYYYYYYYYY N YYNYY [email protected] www.transmiro.com.br Transporte e Comércio Fassina (13) 3298-3000 South, Southeast Greater Sāo Paulo YYYYYNNYYYYYYYYYYYYYYYYYYYY Y YYYYN [email protected] www.fassina.com.br Ultracargo (11) 3177-6215 Northeast, Greater Sāo Paulo, All of the National Territory YYYYYYYYYYYYYYYNYYYYYYYYYYY Y YYYYN [email protected] Greater Rio de Janeiro www.ultracargo.com.br Universal Armazéns Gerais e Alfandegados (12) 3955-4601 Southeast Southeast NNNNYNNFY YYYYYYYNNNYYYYNNYNN N YNNYN [email protected] www.cbce.com.br UPS- United Parcel Service (11) 5694-6600 South, Southeast, Greater Sāo All of the National Territory Y Y N Y N N N YYYYYYYYYYYYYYYYYYYY Y YYNYN [email protected] Paulo www.ups.com Usifast (31) 3399-8701 South, Southeast, Greater Sāo South, Southeast, Greater Sāo YNNYYYYYYYYNYYYYYYYYYYYYYYY N YYYYN [email protected] Paulo Paulo www.usifast.com.br Vix Logística (27) 2125-1800 N All of the National Territory Y Y N Y N Y N NYYYNYYYNYNYNYYYNYYN Y YYYNN [email protected] www.vix.com.br Wilson, Sons Logística (21) 3504-4136 All of the National Territory All of the National Territory Y Y Y N Y N Y YYYYYYYYYYYYYYYYYYYY Y YYYYY [email protected] www.wilsonsons.com.br Source: Revista Tecnologística - June 2008 (NF) = Data not supplied 12 ©Copyright 2008 Armstrong & Associates, Inc.