Log-In Logística Intermodal S.A. (LOGN3) Earnings Call Transcript & Summary

[Interpreted] Welcome to Log-in Logistica Intermodal conference call to discuss first quarter 2024 results. My name is Bruna Matos. I'm Log-in's Investor Relations analyst, and I will be hosting this event presentation and comments about the results will be made by Log-in's CEO, [indiscernible] Sandra Calcado, Investor Relations, Strategy and ESG Manager, Marcus Voloch, Coastal Shipping Vice President, Gustavo Paixao, Terminals Officer; Mauricio Alvarenga, Road Cargo Transportation Officer; and Roberto Pandolfo, Integrated Solutions Officer. They will comment on the company's performance and main highlights of the quarter. Then they will be available to answer questions that you might have. The slides presentation and earnings release in both Portuguese and English are available in the Results Center of the company's ARIA website. And we will be showing the presentation in Portuguese. In addition to the rooms available in Portuguese and English, we will also provide Brazilian sign language interpreting during the whole event. I'd like to remind you that all participants will be in listen only mode during the company's presentation later. There will be a question-and-answer session. That's when further instructions to participate will be provided. -- be advised that this webinar is being recorded and will be available on the company's website. Before proceeding, as usual, we would like to clarify that forward-looking statements that might be made during this conference call relative to Log-in's business perspectives, projections and operating and financial goals are based on the beliefs and assumptions of Log-in's management and on information currently available to the company. Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Log-in -- and could cause results to differ materially from those expressed in such forward-looking statements. Now with the legal disclaimers made, I'd like to turn the floor to Marcio Arany, Log-in's CEO, to start with his initial remarks.

[Interpreted] Thank you, Bruna. Good day, everyone. This is Marcio Arany speaking, the company's CEO. I would like to thank you all for attending Log-in's First Quarter 2024 earnings video conference call. We will start our presentation on Slide 3 by reviewing the main achievements of our strategic plan in 4 blocks: Coastal Shipping, TVV Terminals, Road Cargo Transportation and ESG/Capital Structure, which permeate all the company's business lines. Next, we will present our results. In our coastal shipping business, we highlight historical records in coastal shipping revenue with BRL 383 million, historical records in feeder volume and revenue, 94,700 TEUs and about BRL 96 million in revenue, the highest cabotage volume for the first quarter, 52,600 TEUs and the start of the final construction phase of our Log-in experience. As for TVV and Intermodal Terminals, we highlight the highest revenue for a first quarter, BRL 89.5 million, the highest volume of container handling for a first quarter, 56,300 boxes with a highlight going to coffee handling and the start of the retrofit of the 3 TVV shipped to short trains. With regard to road cargo transportation, we highlight investments of BRL 66.2 million to expand transportation capacity and the creation of 2 new units for multi-mobile transportation. The joint operation with Log-in handling 806 TEU's and the resumption of the parceled cargo operation with Olivapinto heading to Manaus. The fourth and final point relates to our ESG agenda and capital structure. Here, we would like to highlight the Greenhouse Gas Inventory, the partnership with the Artes Sem Limites Institute, which offered 1,482 activities in a wide range of workshops, soccer, capoeira, handicraft, among others, in the ethics training for the entire commercial team during the Intermodal Feira. Now our team will present the quarterly results starting with our Investor Relations strategy and ESG Manager, Sandra Calcado.

[Interpreted] Thank you, Marcio. Good day, everyone, and thank you for being with us today. On Slide 4, I'd like to share with you our results for the first quarter of 2024. As you can see, -- we had a significant increase in net operating revenue, NOR of almost 11% compared with the first quarter of 2023, reaching almost BRL 620 million. Adjusted EBITDA, on the other hand, as you can see, fell by 13% to BRL 143 million, which consequently affected our adjusted EBITDA margin. To explain these figures, we need to put the company's current situation into context. As you can see, Log-in is growing and continues on its path of development and capacity expansion. We have grown in all of our verticals in coastal shipping, especially in its capital volumes and which is also the biggest driver of variation in revenue. Log0in expanded in TBV with significant box handling. We significantly increased revenues in road cargo transport through Tecmar and Oliva Pinto. So okay, we're talking about growth. But on the other hand, given that these businesses are in the period of capacity expansion, they have also incurred heavier cost structures as we like to say, these are the growing pains in coastal shipping, for example, this is due to 2 additional vessels in operation compared to Q1 '23. -- this increase in capacity leads to a temporary reduction in margin due to the ramp-up of the vessels. Likewise, TVV is going to see due to its modernization process is expanding to keep up with the demands of increased productivity and the renewal of equipment and personnel. Of course, all of this comes first. At Tecmar, the same story. We are seeing the same effect due to the capacity expansion project, especially to serve log-in as its supplier. These operational setup costs are initially incurred until they bring the planned results until they can help us expand margins and make these assets more efficient and more profitable. So -- it's a process that is naturally expected at a time of expansion. To talk a little about the results of our verticals, I'd like to give the floor first to Marcus Volk, our coastal shipping Vice President --

[Interpreted] Thank you, Sandra. Good morning, everyone. This is Marcus Voloch speaking, Coastal Shipping VP -- as Sandra pointed out, we had a great start of the year with records in volume, NOR and market share, which were historically at the highest level for a first quarter. I'll start on Slide 5 by highlighting our 52.7% growth in total volume handled with significant growth in the cabotage and feeder trades. -- in this Q1, according to the data from the Brazilian Association of Cabotage Shipowners, ABAC, which represents more than 95% of the cargo transported. The volume of containers handled by Cabotage and Brazil increased slightly by 2.5%, while Log-in recorded strong growth of 28.7%, more than 10x when the market grew, reaching a market share of 29.6% in Q1, a record level for the company. This progress underscores the success of the strategy to increase capacity on the northern route with the opening of the Amazonas Express service in mid-23 and the new ships that joined RFE. In the federate, this increase was even greater with almost double the volume handled in Q1 '23. In 2023, 98.1% growth. And this performance is due mainly to the flexibility that a larger number of vessels gives us offering international ship owners, more routes and more space, especially at times of disruption in international trade with congested ports, delayed ships, et cetera. Part of this growth is also due to the synergies achieved with MSC, Log-in's main shareholder and with a strong presence in Brazilian foreign trade. In the Mercosur trade, we continue to see a sharp contraction of almost 30% in volumes handled. These figures are still preliminary. We haven't got the complete statistics, but it should be around that. In the Mercosur trade volumes fell by 36.7%, slightly above the market as a result of the factory shutdown of one of our biggest clients in Argentina. However, since mid-April, there are already some interesting signs pointing to a slight recovery in this market. Moving on to net revenue of coastal shipping. This grew 16.3% over Q1 '23. It is important to mention that our average ticket ends up decreasing on account of feeders lower revenue per TEU and mainly due to the increased representation of Peter in Log-in's revenue metric, which means that the increase in total revenue is not proportional to the increase in volume. Adjusted EBITDA for coastal shipping totaled BRL 101.1 million, down 21.6% year-on-year with a 12.6 percentage point reduction in EBITDA margin. The drop in margin is mainly due to the increase in ship costs since we had 2 more vessels than in the same period last year as well as higher bunker price, port duties and crude costs. However, we're still in a ramp-up phase until we can fully use the additional capacity. However, due to the strong expansion, we entered less profitable market, which was expected and in line with our strategy of growth and expansion of Cabotage services. Lastly, in terms of storage, warehousing and land transportation costs were under pressure. Moving on to the next slide precisely because of the severe constraints that we've see in some ports, especially between the South and Southeast, Southeast of Brazil, we are launching a new service whose priority will be feeder cargo and which will mainly serve the state of Santa Catarina, whose supports our undergoing expansion works and facing congestion. This service will bring more flexibility to the entire Brazilian foreign trade community and should also bring positive results for Log-in. And I hand over to Gustavo Paixao, who will present the results for terminals. Thank you.

[Interpreted] Thank you, Voloch. Good day to all. This is Gustavo Paixao speaking, Login's Terminals Officer, and I will be sharing with you to be these results for Q1 2024. A Well, that will strike with container volumes, which is our primary business. We can see a significant increase compared to the results obtained in the same period of 2023. In Q1 2024, we grew by 62.8%, handling 56,300 boxes, the best result ever for a first quarter, resulting from significant recovery in coffee export volumes, which have been outstanding quarter after quarter as well as the import of Chinese electric hybrid vehicles, which have also been very prominent since last year with the implementation of a direct Brazil-China route activity. Turning now to general cargo handling, we see a reduction of 43% year-on-year, mainly due to a considerable reduction in the handling of vehicles, down around 45%. Since in July 2023, we had the end of the TVV contract, a space we used to operate within the vports area for the exclusive handling of this type of cargo. Another factor impacting general cargo handling in Q1 is a reduction in bulk cargo handling of around 70% as well as the momentary loss of operating capacity at the terminal. I stress it's momentary loss, which is currently in the most critical phase of the modernization project of the shift to short trains, causing restrictions both in our storage capacity and in our breadth. Moving on now to our financial results, I would like to highlight the record high and for the first quarter. BRL 89.5 million, up around 5% over the same period last year. However, although this result is positive, it is impacted by the previously mentioned momentary loss of capacity at the terminal given the modernization project. This is an impact that was already expected, but which also adds costs to our operation. This was necessary to mitigate greater impact on the terminals capacity and also on its level of service to customers. But again, this is a project that will bring considerable games to the terminal, facilitating logistics in Brazil and the state of Espirito Santo. These issues led to an adjusted EBITDA, well in line with the result of Q1 last year, a result of BRL 40.8 million, mainly due to the impact of restrictions at the terminal and the loss of capacity to generate ancillary services and revenues, given the capacity to store cargo in the terminal at this point. Well, these are the results referring to Q1 2024, a result highlighted by the high container throughput and NOI in the period, and this even with the restriction imposed by our modernization project, which was already planned. A project that will undoubtedly bring great benefits to the terminal in terms of the safety of our people, operating performance, equipment reliability, which will ultimately result in a higher and better level of service for our customers. I'd like to take this opportunity to update you on the timetable of the modernization project. The last and most challenging stage of the project is the retrofit of the 3 ship to short trains, which is proceeding expected. One of them has gone through the retrofit is in the process of installation. We're retrofitting the second asset drain. And the third one is scheduled to end in the middle of the third quarter of 2024. This concludes the presentation of the terminals, and I now turn the turn the floor over to Mauricio Alvarenga to opening officer in charge of Tecmar ports and Olivia Pinto to continue the presentation.

[Interpreted] Thank you, Gustavo. Hello, everyone. This is Mauricio Alvarenga speaking, Executive Officer in charge of the Road Cargo Transportation business vertical. In the first quarter of 2024, we continue to make progress in capturing synergies, particularly with coastal shipping. We recorded the highest volume of parcel cargo transported by coastal shipping for the first quarter. I'd like to remind you that we started looking for synergies in the second half of 2022. The main highlight has been the growth of our new distribution route for parcel cargo, heading north, especially in Manaus, but also serving the state of Roraima. In the capturing of presold cargo originating all of Brazil for distribution in this region, but also the capturing of parcel cargo originating the Manaus industrial hub for distribution using Tecmar's network in the Northeast, Southeast and South regions. This is a different product that we launched in the market where the Manaus industry, no one needs to transfer parcel cargo to a distribution center before distributing to the end customer. The cargo can leave Manaus, for example, already with its distribution plan in other regions of the country using a broad road network that belongs to Tecmar. Well, as you can see on Slide 8, please note, our net operating revenue grew by 5.4% to BRL 132.6 million in Q1. Our EBITDA totaled BRL 9.2 million, posting a decrease compared to the same period in 2023. Here, I'd like to stress what [indiscernible] mentioned. Our result was impacted by our investment for growth. We had a number of preoperating expenses to add to our fleet, 2 trucks plus 100 semitrailers. And have these drugs running -- they didn't start operating in Q1, but we had cost and expenses linked to the early hiring of drivers, training of the drivers adjustments of the vehicles with the requirements of the risk management plans, fuel requirements and others. So, this is operating costs that did not have a counterpart in the revenue. So, it impacts directly our EBITDA. Put this is necessary in order to enjoy the growth we want to have. With this investment of BRL 66.2 million, we are expanding our fleet again to increase our capacity to transport parcel cargo all over Brazil and also to expand capacity in a new segment, which is the container transportation segment that started last year. We have set up 2 new branches one of them in Cabo de Santo Agostinho, Tecmar already has a big branch in the region. And we are using Vetearea to have this new branch to transport containers to supply the whole Northeast of Brazil with special cargo arriving via the swap port and another branch in Itajai state of Santa Catarina to serve the 3 states in the south region of Brazil in container transportation. As a reminder, these 2 units are in addition to the 2 existing ones. One in Cubatao, serving the Sentosport in the Southeast region and another unit in Oliva, known EZOLIVA, Takmy North in the state of Amazonas, serving Manaus and Roraima state. And now we will have the capacity to transport more than 4,000 containers monthly. So, it's a great capacity arise. This further increases the synergies with the Coso shipping business vertical since part of this capacity will contribute to increasing capacity for cabotage to provide a door-to-door service. So, we have not just synergies, but will also increase the level of service with this increased capacity, new vehicles and so on and so forth. This is it. I'd like to thank everyone who's at this call, and I'd like to hand over to Sandra to continue the presentation --

[Interpreted] Thank you, Mauricio. Moving on to Slide 9. On this slide, we see our indebtedness. I'd like to address a few points on this slide. First, I'd like to highlight our level of leverage. This is expressed by an indicator, net debt over EBITDA ratio. As you can see in Q1 24, it stood at 1.8x. We continue to have a very healthy debt structure, totally in line with the previous quarter. It is always worth recalling. In fact, we are very well positioned with regard to our covenants. With a very safe level of leverage in order to ensure that the covenants are met. Now this situation results from the company's strategy of using cash upfront in our expansion projects. As you can see, Mauricio and Gustavo have presented their expansion project and VOC mentioned the new vessels. And this is to ensure that we don't lose the timing of the investment. We don't want to have to wait for a loan to be approved before we can start an interesting investment. So, the company is leveraging itself more in search for projects with good levels of return. And -- this is all fully planned in plant Conway so that we can get the best possible funding. And we've done this now, as Mauricio has mentioned with Tecmar expansion project, which, of course, leads to a slight mismatch in cash. So as regards net debt, which is growing, if we look at EBITDA over the last 12 months, it's very much in line with the previous quarter. It falls a little -- again, because of the last quarter 2023 due to the drought in the north and the floods in the South. As we've already talked about, we addressed this a lot in the prior call. And of course, we know this hurt our margin a little. But the covenants, well, they still have a lot of room for more leverage. On the other hand, here, we show you our debt structure, but it's worth mentioning that the average cost of debt has decreased. In the graph below, we can see what I'm talking about, the lengthening of the company's amortization schedule over time as well as the expected debt service for the coming years. This is exactly what we've been working on that is we're exchanging less attractive debt for better longer ones. -- and the market movement is very positive for that replacement. This window is so interesting, so positive that we've taken advantage of the opportunity and are raising new funding. I don't know if you had an opportunity to see, but last night, we announced a new issuance of commercial papers to the market of BRL 430 million with a maturity of 7 years. If you want more information, this material fact is already available on our IR website. The objectives of this funding are totally in line with our strategy, which I mentioned earlier. First, strategy is to rebuild the company's cash, working capital, given the mismatches between the timing of investment opportunities and the most favorable conditions for structured operations. And the second goal is to exchange that's maturing in the next 2 to 3 years with better, but that's with better structures at a lower cost and, of course, more lengthened. Now moving on to Slide 10. I'd like to share with you as we have done in our previous earnings calls and Pasco has been showing this I would like to share with you a little about our ESG agenda. ESG is standing for Environmental, Social, Governance. And I want to ratify Log-in's commitment to ESG. As you can see on the slide, our ESG agenda is presented through 4 fundamental pillars: innovation and sustainable growth, the environment, social and governance. These 4 pillars reflect our commitment to sustainability. And I'd like to highlight some of the main events in this quarter. Some of them have been mentioned by Masso and the other officers. But I'd like to highlight the big events. In the first pillar, for example, innovation and sustainable growth, we always look to find opportunities to innovate within our practices. For example, we have adopted some innovations in our new vessels. These innovations in log-in experience, log-in evolution as to maintain the same level of performance with much lower fuel consumption. And consequently, the result is we emit fewer greenhouse gases. In addition, with the integration of Tecmar into Log-in, we have been transporting fossil cargo also in our ships. We sell the whole model, which also contributes to reducing the number of trucks on the road. And of course, as a result, we have fewer gases emitted into the atmosphere. In environmental front, a highlight was the completion of our 2023 greenhouse gas inventory. The report was published assured by an international body in accordance with the GHG protocol. And it was totally in line with global benchmarks. On the social side, as Marcio has already mentioned, I would like to stress Log-in's partnership with 2 institutes. Artes Sem Limites and Social Esperanca. A lot of people are saved here with these institutes are our main years mainly to get young people and children off the street through sports, handicraft, school tutoring and various workshops and also to train people of working age. This is the kind of action that we will continue to support. Lastly, in governance, we have also been involved in training. -- specifically talking about Q1, we focused on 2 very important topics. First, training to combat certain behaviors, such as harassment and discrimination. We know that this fosters diversity at the company; and secondly, training to reinforce ethics in our business relations and this is fundamental. Through these ESG pillars aligned with our purpose and what is our purpose because of making integrated maritime logistics and engine of sustainable development through our people. With this purpose, we seek to create long-term value for all our shareholders, employees and society in general and also for governmental agencies, our partners, our suppliers, all the stakeholders in a genuinely diverse and growing environment. I will now hand over to Roberto Pandolfo, our Integrated Solutions Officer.

[Interpreted] Good morning. Thank you, Sandra. I would like to start apologizing to everyone. I'm in Argentina. I was in Bahia Blanca and there was a lot of wind. And my voice went away with the wind. Well, again, good morning, everyone. If you don't know me, I am Roberto Pandolfo. I've just taken over the new integrated solutions business vertical at Log-in. I've been an officer for a number of years in companies such as Queen and ago, Portitapoa, SCO and Customer Experience Officer and the late very good lines as Regional Director. My main experience in matrix roles focusing on business development to improve customer experience and perception -- that's why I'm a good fit in Log-in in our primary mission in integrated solutions is to provide our customers with the best integrated logistics experience, adding value by integrating several of our products, such as coastal shipping, road cargo transportation, warehousing and terminals. It is important to note that our national coverage as well as coverage of the River Plate Basin allow us to provide an excellent network for our customer supply chain. We're able to interconnect solutions and especially, and this is very important, being the customer's focal point. As a result, customers won't need to manage many suppliers, many logistics suppliers talking with many people and companies. And we'll leave again in charge of everything. From project design, their implementation, and this is very important, understanding customers' expectations with the project, designing the respective SLAs all the way to centralized communication with a single company. Unfortunate to have arrived at a Log-in company that already highly valued this type of logistics integration. We have cases of this type of product that has existed for more than 10 years and very successfully. And I can say that I always meant to offer that in the competition, and I never managed. So, our team here was able to bring to post results equivalent results that are very good in the first quarter. And even with the weather conditions that impacted the country, in Q3 and for 2023 here in balance, we had a typhoon that impacted the production of our main client in Southern Argentina. Our primary challenge in this first half of the year is to create the strategic plan for this new business vertical. At the same time, bringing results by creating -- by new business. It's not enough to plan the mid- to long term if we don't bring in revenue in the short term to subsidize our existence. Our focus is to look for synergies and there are many to be enjoyed, not only among go Log-in verticals, with the other group of businesses of MSC. This will increase our package of offering solutions to clients. We will work on defining the business units of value strategy, analyzing the internal and external contexts to which we are subject -- building the unit's vision and strategic positioning. With regard to commercial structuring, we will establish our business rules. This is extremely important. We'll position ourselves in the intended market profile target customers, who they are, which chains we want to address and always thinking about innovation and sustainable practices in mind. And so that we can create a portfolio of services. For our governance, we will carry out an economic and financial assessment of the intended business model. Of course, we cannot have planning without taking this into account because it is extremely important. So, we'll analyze the need for digital transformation and analyze our resource development plan, resources meaning people and technical points. For this, we will develop our business case, evaluating strategies, opportunities and risks for sure. And finally, building a road map for our strategic actions. I thank you very much for the opportunity to share with you our plans. Have a great day. And again, I apologize for my voice. I now turn the floor back to Marcio Arany, our CEO.

[Interpreted] Thank you, Gustavo, Alvarenga, Pandolfo and Sandra. We now move on to the question-and-answer session. We are here for you. Thank you.

[Interpreted] Thank you. We will now begin the question-and-answer session. [Operator Instructions]

[Interpreted] We got a question in the Q&A by JP --Good day, another excellent quarter for the company. Congratulations, I have 2 questions about the coastal shipping market. With the arrival of a new player in cabotage in Brazil? Should investors expect a melting down of prices and the shipping war in the coming months. Is there a bottom-line price to maintain margins? And what is the strategy adopted to improve or increase the volumes in the north of the country. And given this volume and the expected dry season, is there a plan to cover the restriction of capacity in the second quarter and half figure

[Interpreted] JP for your question. I'll ask Voloch, our cost shipping as --

[Interpreted] Thank you, Marcio, and thank you, JP, for the question. That is a good question. But the arrival of a new player in the market, of course, increases competition among the players. But we have to understand that container capitalize accounts for 4% to 5% of the Brazilian transportation metrics. Our biggest competitor is not another ship, but road transport. So, the more supply, the more rancular the supply is with the right pace with the vessels operating smoothly, more cargo will be converted to multimodal transport via cabotage. So, what happens is that the whole pie grows, if we analyze historically, -- the big growth or capacity growth movements in the market. I think in the last 10 years, we had 2 big moments. One in 2013 and the other one in 2018, if I'm not mistaken, and now a third moment in 2024. But in 2013 and '18/'19, with that capacity increase, there was a market leap soon after showing that there was a pent-up demand. So, what we see happening is that the volume of Capita is growing as a whole. Of course, there will be an accommodation among marketplaces, having one extra player in the market. There will be a redivision of the pie. But what we see happening is that the pie is growing. -- a lot more it would grow if we didn't have this capacity increase. The market tends to supple but at a higher level, of course, freight will end up suffering a wide but the migration of more clients from road to transfer to cabotage. This will more than offset this competition -- as regards to the second part of the question, increasing the volumes in the North continues with strong models, but there was a forced downtime in Q4 2023 because of the drought. But everything being normal, volumes continue strong. activity has not decreased. It has actually slightly increased, and this reflects an increase in capital volumes. But as regards to the drought, there are a number of mitigating actions that are being taken. One of them includes strategy. And to be honest, we have 4 actions very well supported and worked on that can be put into practice individually or in parallel. But we have a super well-structured plan with 4 viable alternatives that can be implemented if we have a dramatic drought. These 4 alternatives can be put into practice, concomitantly or individually as needed. I hope I have answered your question. Bruna, back to you.

[Interpreted] [Operator Instructions]

[Interpreted] We received a question from Jose Paolo Pereira. What about the start of operation of the 2 new vessels? How is this unfolding?

[Interpreted] Thank you, Jose Paolo for the question. Work. I'll turn the floor again to Marcus Voloch.

[Interpreted] All right. Well, the 2 new vessels, Log-in experience and Log-in evolution. One of them is already operating in cabotage. She has started our operating in the beginning of the second quarter. And it was a pleasant surprise in the second operation of the vessel, we realized that -- well, we have the theoretical design of the visible when we put cargo on board, we do -- we run an effort test to see whether the vessel is really steady. And we were positively surprised. The vessel is very robust. We're super happy with her performance. And regarding fuel consumption, performance, -- it is strictly within the theoretical curves, which is also expected. It's a very economical vessel. With the capacity that goes beyond what we expected, we're very pleased. The second vessel is we'll start to see trials in China this week. Our COO is going there to monitor the sea trials and the delivery of the vessel. And she should get here in June, July to start operating. So, we are super happy with the arrival of these 2 ships. They will help us maintain leadership. Thank you.

[Interpreted] After no more questions, I would like to thank all of you for participating. And I turn the floor to our CEO, Marcio Arany for his final statements.

[Interpreted] Well, thank you, Bruna. You could see we ended Q1 '24 with good results across all our business verticals, each one with their specificities. In coastal shipping, we are very consistent with the new service to Manaus, we started operating at the end of last year. And as Sandra mentioned, these are growing pains -- we don't start with a full vessel. We are filling the before. We are working to always convert highway cargo to see transport. This takes time, but it is consistent and it is a very good alternative for our Manaus customers. Another point I'd like to highlight, and Voloch mentioned this is the launch of our Navegantes Rio de Janeiro shop service. Again, it shows our expertise in this kind of product offering to the market. And we are focused on quickly implementing this service. It takes more like to stress the excellent work that is being done there always focusing on the company's turnaround. It's not easy. I've mentioned this before. We are learning with this new business. It is very new for all the login team. But we are opening up new fronts, as already mentioned, the container branches, container transportation branches, -- so we're still working on take more turnaround to capture efficiencies and leveraging synergies with Log-in. With that, I'd like to thank you all for your attention on this conference call. And I'd like to end wishing you a good afternoon.

[Interpreted] Thank you. The conference call of Log-in Logistica Intermodal to review Q1 2024 earnings has ended. You may disconnect and have a good day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]