Brazilian post office and Azul to launch e-commerce logistics platform

21 / 12 / 2017

Brazil's postal service Correios and local airline Azul are joining forces to create a logistics platform to serve the Latin American nation's e-commerce sector.

A joint statement said that the new company “will allow the expansion of logistics services and products to locations not yet attended”.

Activities are expected to begin in the first half of 2018, after the approvals from government authorities.

Azul, hubbed out of Viracopos airport, is the largest airline in Brazil by number of cities served, and offers 755 daily flights to 104 destinations with a fleet of 118 aircraft.

The new company will have a 50.01% ownership stake by Azul and 49.99% by Correios, and will offer “integrated logistics services for cargo transportation, to become the best logistics platform for e-commerce in the country”.

Drawing on existing volumes from its joint owners, the new company will handle around 100,000 tons of cargo per year, added the statement.

Gilberto Kassab, Brazil’s minister of science, technology and communication, said: "Azul is the only company with a broad aviation network, connecting the country with more than 100 destinations served.

“Correios are present in 5,570 Brazilian cities, with the biggest distribution capillarity from its network. Having a company exploring this synergy, more Brazilians will have access to integrated services, allowing them to be even more active in the development of our country."

Guilherme Campos, chief executive of Correios, said: "We saw a unique opportunity to make Brazil even more efficient in logistics service, with clearer benefits to consumers.

“The beginning of this company will benefit Brazilians with Correios' current logistics costs reduction and dividends distribution, further improving the efficiency of our operation."

John Rodgerson, chief executive of Azul, said: "It is a great opportunity to expand our cargo transportation and to increase operating efficiency.

“We are the only company providing this level of service, as we are serving most of the cities in the country. In addition, we have a strong presence in Viracopos airport, which is already the cargo hub in Brazil.

“Further, we have one of the highest on-time performances in the industry, which is essential for this service." 

A non-binding memorandum of understanding will be submitted to the Brazilian authorities and appropriate government bodies for approval.

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