Tegma exports experience out of ABC paulista area

Guilherme Manechini – Valor Econômico

Between loadings and unloadings, every day two thousand vehicles go through the Tegma headquarters, in São Bernardo do Campo (SP), on board approximately one hundred open car carriers. The Demarchi neighborhood, where the Volkswagen plant is located, is the center of the Brazilian automobile industry, and, logically, the traffic of open car carriers hauling new vehicles is very significant, to the point of surprising those who do not live in the surrounding area. So far, there would be nothing new, if it weren’t for Tegma’s wish to reproduce the same scenario in the city of Valencia, in Venezuela.

It is in that city that the GM plant in the country is located. The car manufacturer was the reason why Tegma and Quinta Rueda – a company owned by Venezuelan entrepreneurs – decided to invest US$10 million (25% coming from Tegma) by the end of March 2008 to set up the vehicle transportation operation. Initially, Tegma Venezuela is focusing on catering for GM, but the company intends to also win over Ford and Toyota, both of which have plants in the country. For Tegma’s CEO, Gennaro Odone, the productivity indices of the local companies are very low, which will allow the operation to expand to other car manufacturers.

“The equipment is old and its productivity is low, not to mention that part of the production reaches the car dealers by road”, says the executive officer. As soon as the investment is completed, Tegma Venezuela will own 60 ensembles – truck and trailer – and the capacity to transport 10 thousand vehicles monthly. For comparison purposes, Tegma’s business in Brazil involves 2.5 thousand ensembles, and transported approximately 730 thousand vehicles last year.

So far, the Venezuelan branch owns 22 ensembles. Total investment up to the end of the year will be US$5 million, US$1.25 million of which will be invested by Tegma. Oddone did not reveal the names of Quinta Rueda’s owners. He only stated that they are “local entrepreneurs of the local automobile industry. Some of them own car dealers”. Tegma itself has among its partners the Itavema group, a major car dealer.

Besides the Venezuelan operation, the CEO does not rule out other Latin American markets in 2008. “Latin America is considered a great block by the car manufactures, and that may translate into good opportunities for us. We are keeping our eyes open”, he says.

According to Oddone, in Brazil the company intends to follow the growth in the automobile industry in 2007 (the forecast is for a 22% increase compared to 2006). In the second quarter, the growth in the number of transported vehicles was 17% over the same period last year. Investments will go from R$55 million up to R$65 million.

This year, Tegma acquired the transportation companies Boni/GATX and CLI. According to the company’s calculations, these transactions would add R$129 million to last year’s income. Thus, the 2006 pro forma sales were R$555 million. Another important step for Tegma was its IPO and listing at the São Paulo Stock Exchange (Bovespa). The company raised R$525.2 million with the sale of 30% of its capital.

To access the PDF version, click here.