Julio Simões gains new markets in 2010
Valor Econômico
"The IPO served as a seal of governance, which gives more security to the customer", says the CEO of Julio Simões, Fernando Simões. The IPO has given the company a collection of R$ 477 million (US$ 280.6 million), but most are still in cash. According to the executive, the resources that came improved the conditions of raising of credit lines, but the company does not necessarily depend on the operation to raise funds to invest. Another important change since then was the name: Julio Simões Logistics became JSL, absorbing the brands Lubiani and Grande ABC, companies acquired between 2007 and 2008. But now, ensures Fernando Simões, there are not further acquisition plans.
The company estimates it has invested around R$ 760 million (US$ 447.1 million) last year - most of it in vehicles. The company is the largest purchaser of truck of the country, and its fleet today is of 23 thousand items, including cars, trucks and trailers. Fernando Simoes is optimistic about the period through which the company is going through, which resembles the phase where the company shot to lead the market in the second half of the year 1990. At that time, overvalued exchange rate and economic restructuring have driven change in large companies, which bet in the outsourcing of their logistics part.
Now, he notes, there is again overvalued exchange rate and companies restructuring themselves - though this time to keep pace with the economic growth. In the 90´s, the challenge was the opening of the economy. With new requirements, industry and retail tend to look for new solutions in logistics - favoring the choice of companies from outside, such as Julio - to do so, analyzes the executive. Julio's specialty is what he calls dedicated service - the supply and distribution of goods to industrial and commercial units - which corresponds to 53% of its revenue. It was exactly the area that it grew the most, nearly 37% only in the first nine months of the year. Most, with new contracts signed with former customers.
The company also aims to gain room with the worsening of the traffic in the metropolis and the emergence of new restrictions on truck traffic. That, according to Fernando Simões, will require adaptation of the companies, favoring who is specialized in the segment. Júlio itself had to adapt by buying smaller vehicles. "And I think the expansion of overnight delivery is inevitable in São Paulo", he says. Júlio has a major ongoing investment in an area of 500 thousand square meters owned by the group in Itaquaquecetuba, east of São Paulo. In the total amount of R$ 150 million (US$ 88.2 million), the undertaking should have three phases - the first will come into operation already this semester. It is a warehouse for intermodal transport, alongside a MRS railroad. The first cargo must be steel, coming from Minas Gerais or Rio for distribution in the Metropolitan Area of São Paulo - with possibility of expansion.
The second phase should be to build two more large warehouses in the area, to assume the role of something like an advanced stock of large industries. According to Fernando Simões, with the need for increased production in recent years, some industries have swallowed their land available for stock. With the innovations in environmental área and urban occupation, expanding the original land was not feasible, what requires searching for solutions. There are some potential customers for the project, says Fernando, but the work will only be released when something is closed.