A DP World Brasil is studying expanding logistics operations in Latin America with new integrated routes between countries in the region and markets in North America. According to the company’s CEO in Brazil, Fabio Siccherino, conversations are still in the initial phase and no project is “maturity enough to be announced” officially.
“We have been evaluating how to integrate Brazilian operations with those in Argentina and Chile. We have talked a lot about how to establish a better flow between countries on the west coast of South America, such as Peru, Ecuador, or with the United States and Canada”, said Siccherino on CNN’s Conexão Infra program.
According to the executive, the company has analyzed different possibilities for logistics integration in the Americaswhere the company has 11 operational units.
The discussion takes place amid the global logistics restructuring movement adopted by the company after periods of instability caused by the pandemic and growing international geopolitical tensions.
According to Siccherino, unpredictability in global trade has increased operational challenges in the port sector. He stated that, since the pandemic, the number of delays in berthing at the Port of Santos has increased and that the windows provided for the entry of ships were often not met.
“We cannot anticipate much of what will happen in adversities such as the pandemic and the war between the USA and the Middle East in a scenario with 85% occupancy,” he stated.
Given this scenario, DP World began to expand its “door-to-door” operations strategy, model in which the company itself controls different stages of the logistics chain, from the cargo’s origin terminal to its final destination.
According to the executive, it is this concept that fits into the routes being studied involving Argentina and Chile, in addition to the Brazil-Africa corridor already developed by the company.
“With this connectivity, it is possible to pick up the cargo at the plant with the customer (…), consolidate the cargo, contract international freight using my terminal, take this product and distribute it”, he explained.
According to Siccherino, This verticalization model increases the predictability of deliveries, reduces operational costs and improves the flow of information throughout the logistics chain, since the operation remains concentrated in a single company.
