Coimex Logistica Integrada S.A.

Sao Paulo, Brazil

March 27, 2001

By

Richard Armstrong

Coimex Contact:

Robert Caracik, Diretor Presidente
Av. Paulista, 925 / 5th Floor, Centro
Sao Paulo, Brasil 01311 100
Telephone 55 11 3178 1800
Fax 55 11 3178 1891
Email: rcaracik@coimex.com.br

Except for the language, walking in to the operations of Coimex Logistica is like walking into a third party logistics operation in the United States. The office is modern with a computerized backbone to all its operations. Logistics specialists are organized by cells for individual accounts. Compensation for logistics specialists is partly determined by cell success. Awards for logistics excellence are proudly displayed. I could see the workings of this operation quickly and felt very much at home.

Coimex is a very large, profitable Brazilian business that grew from coffee exporting origins. Its operations today emphasize bulk exports, petroleum logistics support, importation of manufactured goods, automotive logistics/transport and third party logistics.

Automotive logistics and sales is based near Vitoria. This operation includes a huge facility for final prep of automobiles and an enormous parking lot. It serves as a reshipment point for the Coimex joint venture, Axis do Brasil.

Coimex imports are 40% automotive with customers like GM, VW and Toyota. Other major emphases are in hi-tech (Hewlett Packard, Apple, Global Star) and retail goods. Coimex has 200 key customers.

In Sao Paulo, Coimex has a modern 3PL warehouse (80,000 square feet) with 6,000 pallet positions. This paperless warehouse provides value added services and Internet inventory reporting. The WMS is Helis from the German company Heyde. (Lufthansa uses this software for its spare parts support operations). Fifteen hi-tech and telecom customers are serviced through this high security facility.

The head of Coimex Logistica is Robert Caracik. Caracik received his basic training in the United States. He directed Ryder Logistics' startup in Brazil. Caracik is a modern, aggressive manager. He runs a modern operation that could be located anywhere.