Value-Adding Logistics

Value-Adding Logistics

January 30, 2024
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Silvia Krueger Pela, Head of Logistics and S&OP and Suzano Logistics Department

When it comes to the eucalyptus pulp value chain, Suzano comes out ahead with its global business model that is unique and irreplicable.

The company has been structured in such a way that it is present in all stages of the Suzano Biopulp value chain: from the conception of seedlings to the delivery of pulp bales to our customers in more than 100 countries. This provides fundamental attributes for a commercial relationship based on trust and makes Suzano a valued partner. I refer to, above all, delivery reliability.

We have a distinctive operational and logistical system that allows us to adapt and maintain the level of service our customers expect. Suzano Biopulp is produced in seven mills, with a significant volume being transported by rail, and we manage three ports in different regions of Brazil. And we have more to come! New structures are already being built to accommodate all the production that will come from our Cerrado Project, the unit under construction in Ribas do Rio Pardo (state of Mato Grosso do Sul/MS). This includes a new intermodal terminal in the city of Inocência (Mato Grosso do Sul) and the expansion of the two terminals in operation in the Port of Santos (São Paulo), T32 and DPW, the latter operated in partnership with the company DP World Santos. The new unit is scheduled to start operations in June 2024, and these logistical structures will also be operational by then.

With all this, we have a resilient, flexible, integrated, reliable and highly competitive logistics system. Another differentiator in our logistics is the operation of 10 ships that transport Suzano Biopulp exclusively. This allows us to be more agile and resilient, especially during global logistical challenges, like those experienced during the Covid-19 pandemic. When drawing up a plan for delivering an order, we always have alternative routes – the well-known ‘plan B’ – which can be activated at the first sign of a trouble with the priority route. And this was not achieved overnight. We perfected ourselves through decades of operation, learning, development and partnerships with suppliers who are always available to do above and beyond. We want to deliver value and provide a distinctive level of service to our Suzano Biopulp customers.

Innovation in logistics

Speaking of partnerships, we greatly value all the ones we already have and those that are yet to emerge. Our main driver is to generate and share value. And a concept thatencourages us to always seek the best in all areas of the company's business is 'innovability', which is innovation combined with sustainability. From there, we actively map market trends that allow us to deliver a more efficient, safe and sustainable service. This involves, for example, the automation and autonomous operation of equipment. Therefore, I present here some recent innovations that demonstrate Suzano's leading role in the transportation of our pulp.

Currently, in two of our port operations, at Portocel, a port terminal partnership between Suzano and Cenibra, located in Aracruz (ES), and at Itacel, Suzano's terminal at the Port of Itaqui in São Luís (MA), we are testing autonomous trucks in operation, making the journey between the warehouse and the ship's side. We are the first company in Latin America to use this technology for the transportation of pulp in port terminals. Another global level, pioneering initiative is the use of automatic spreader with a capacity of up to 32 tons. This tool allows the shipment of pulp with automatic hooks, ensuring greater safety for workers and with the potential to increase port productivity. This equipment was developed by Portocel and is being integrated into its operational routine and also into Itacel's routine.

Finally, one of the biggest challenges we currently face in logistics operations is reducing greenhouse gas (Co2) emissions. We want to make the transition to the useof increasingly efficient and less polluting fuels, in other words, a green transition. Therefore, we have promoted and participated in studies and concept testing in partnership with our suppliers for alternative fuels and more efficient equipment.

Sustainability is Suzano's business strategy, whether in the field, where there are eucalyptus plantations, or at the end of the chain, delivering bales of Suzano Biopulp bales to customers. We are a link in the chain that connects customers with sustainability and with the peace of mind that their business is safe and on the pathtowards Bioeconomy.

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