FedEx evaluates partnership with Correios and invests to grow in Brazil | Business

The Post Office went into the privatization process in August, together with other companies such as Telebras, Serpro and Dataprev: the government is still deciding which model will be sold to the private sector, and the transaction should be completed in at least two years. Logistics company FedEx does not rule out an offer to buy part of the state-owned company, but believes that a business alliance would be more likely.

FedEx Express

“In the US, we transport everything to the US Post Office, so there are win-win opportunities working with the Post Office, whether through an alliance or other relationship,” says Juan Cento, president of FedEx Express for Latin America and Caribbean, in an interview with Value. “We are closely monitoring what they are doing and the opportunities that may arise.”

This may not be the best time for FedEx to talk about acquisitions: it bought the Dutch TNT Express in 2016 for $ 4.8 billion, and still struggles to incorporate it into its structure.

FedEx profit fell in fiscal year 2019 in part due to TNT’s $ 314 million in integration costs. The process is only expected to be completed in fiscal year 2021, costing about $ 1.7 billion in total; initially, the company estimated that this expenditure would not exceed $ 800 million.

FedEx shares have fallen 14% since the beginning of the year: its executives were taken by surprise after the poor results of TNT, which depends a lot on the European market; the economy of Continental Europe and the United Kingdom slowed, and the company need to compete with cheaper alternatives.

FedEx renews fleet and expands warehouse in Brazil

This does not prevent FedEx from expanding its operations in Brazil, where it purchased Rapidão Cometa in 2012. Juan Cento tells Value that the company has been talking to major Brazilian retailers and startups to offer logistics services. In addition, it plans to renovate 400 vehicles in its fleet in the country, which consists of 2,800 trucks, trailers and vans.

FedEx is also finalizing the expansion of its warehouse at Viracopos airport, in Campinas (SP), which will increase from 4,500 m² to 10,000 m² and will receive equipment such as an X-ray for large volume objects. This is the company’s main distribution center in South America.

With the expansion, the warehouse will be closer to the parking ramp of the Boeing 767-300 used by FedEx: the promise is to reduce, by up to two and a half hours, the time to transport cargo in and out of the plane. In addition, the company has authorization from the Federal Revenue to release goods for import and export without using third party areas, speeding up the process.

With information: Value.

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