Brazil’s leading logistics company JSL (JSLG3.SA), opens new tab is expanding its international operations beyond Latin American borders, eyeing new markets in Africa, chief executive officer Ramon Alcaraz told Reuters.
JSL, which ended 2023 with 8.9 billion reais ($1.64 billion) in revenues, is about to announce it opened its second operation in the continent, setting foot in Ghana after entering South Africa about three years ago.
“We want to grow in Africa, in countries where there are plenty of opportunities,” Alcaraz said in an interview.
JSL currently operates in nine countries, including Brazil, Paraguay, Argentina, Peru, Chile, South Africa and now Ghana. Founded in 1956, it focuses on cargo transport, storage and urban distribution of goods, among other activities.
The company has about 300 trucks operating in South Africa, while in Ghana it is starting activities with 40 trucks. But it plans to double in size in the country in the next two years, according to Alcaraz.
JSL is also aware of opportunities in other African nations, including populous and troublesome Nigeria when possible, the executive said.
“Africa has a great number of countries, heavily populated, where even a small economic upgrade can lead to huge hikes in consumption,” Alcaraz said. “In Africa, we can double, triple, all it takes is a little improvement in general conditions.”
The Brazilian company has also been quickly expanding its domestic operations not only through organic growth, but also via acquisitions.
In the last four years, it has acquired eight competitors in the country. JSL is still open to new deals in Brazil, aiming mainly at companies with annual revenues reaching up to 1.5 billion reais, Alcaraz said.
Extremely fragmented, the Brazilian logistics market has few entry barriers and activity strongly correlated to the economic cycle. It also lacks rail networks, relying heavily on roads.
Similarly, several African countries face huge infrastructure challenges, making roads a crucial mode of transportation, the executive noted.
JSL is controlled by holding company Simpar (SIMH3.SA), opens new tab, and its shares are down 16% so far this year.
($1 = 5.4398 reais)