OPERATIONS

ULTRACARGO

Ultracargo is a leading provider of integrated logistics—road transportation and storage services—for chemical products and fuels in Brazil. Among the solutions Ultracargo offers are road transportation facilities using its own and third party fleets and storage services through warehousing facilities at port terminals and rail junctions for the handling of chemical products and fuels. Transportation services include integrated multimodal transportation as well as the receiving and dispatching of customer’s goods. Ultracargo also offers ship loading and unloading services, the operation of pipelines, logistics programming and installation engineering. Ultracargo is the only company in the Brazilian market to offer integrated transport and bulk liquid and liquefied storage services to the petrochemical industry.

Ultracargo operates a fleet of approximately 529 tanker trucks and provides transportation services to the chemical and fuel industries. Ultracargo had a storage capacity of 211,551 cubic meters and 11,200 square meters at December 31, 2004. Ultracargo accounts for approximately 71% of all tank capacity for liquids at the Aratu Terminal in the State of Bahia, which serves South America’s largest petrochemicals complex and it is also present at the ports of Suape and Santos.

Ultracargo’s principal competitive advantages include (i) its unique position as the only company in the market equipped to offer integrated transportation services and storage for the chemical products and fuels segment; (ii) the location of its assets, and; (iii) the commitment to operational safety.

MARKET
In 2002, Ultracargo renewed the rental contracts of its principal terminals at Aratu and Suape until 2022 and 2030, respectively, with the objective of expanding its chemical product and derivative operations. The first expansion program has already been concluded, corresponding to an the increase of 20,000 cubic meters in storage area at the Aratu terminal.

In 2004 Ultracargo complete the Tatuí Intermodal Terminal and the Montes Claros Liquid Fuel Terminal. The Tatuí Intermodal Terminal has been designed to receive petrochemical resins from the Triunfo Petrochemical Complex, in the state of Rio Grande do Sul, for subsequent distribution throughout the state of São Paulo. The Montes Claros Liquid Fuel Terminal counts with a 4.4 thousand m3 capacity for fuel storage.

The conclusion of the Santos Inter-modal Terminal, constructed in partnership with Crystalsev and Cargill/ Coinbra, is scheduled for the beginning of 2005. Ultracargo’s investment in this terminal is budgeted at approximately R$ 80 million and has an occupied area of approximately 64,000 square meters and a total of 35,000 cubic meters of tankage space for chemical products. Crystalsev and Cargill/Coinbra are to invest in tankage space for 40,000 square meters of alcohol and 38,000 cubic meters of vegetable oils, respectively. This project will be Ultracargo’s second port installation to integrate road, rail and maritime transportation systems, as in the case in Aratu.

QUALITY
Ultracargo was recertified in 2003, by SASSMAQ (safety, health, environmental and quality, evaluation system), continuing to be Brazil's first company in the sector to qualify under this quality standard. The system has the aim of ensuring that the service providers in this segment meet the technical standards set by the chemical industry, so as to reduce the level of risk associated with transport and distribution operations. Furthermore, all the units have adapted their Quality Management Systems to conform to the ISO 9001:2000 standard, in a process based on continuous improvement and catering to the specific needs of each client.

For more information on Ultracargo, access our 20F

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