Logistics giants head to Brazil

By Staff -- Logistics Management, 6/1/1998

Two of the largest U.S. logistics providers, Penske Logistics and Ryder Integrated Logistics, have expanded their presence in South America by launching operations in Brazil.

Penske formed a joint venture with Sao Paulo-based Coati Trading, S.A., a $3.8-billion company with core businesses in trade, finance, logistics, and vehicle dealerships. And last month, Ryder completed the purchase of logistics company Companhia Transportadora e Comercial Translor, S.A. (Translor).

Both U.S. companies recognize the potential market for logistics services in South America is not limited to U.S.-based businesses. "Traditionally, logistics providers followed their customers to South America where they provided import and export services," says Mark Skoda, executive vice president, Penske Logistics. "We did that as well, but we also see a huge domestic market." Penske Logistics will offer the same products and services it offers in the United States, he says.

Ryder's Translor, a $125 million company, provides services to such customers as Ford, General Motors, Toyota, Mercedes-Benz, Volkswagen, and Brazilian manufacturers within South America's Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay). Translor also participates in the cross-border automotive-parts traffic between Argentina and Brazil. Ryder will integrate the company into its existing Brazil- based operation, Ryder do Brasil Ltda.