Modern Logistics is pleased to announce a partnership agreement with ATC Aviation Services Team – ATC Aviation Services Latin America to be the General Sales and Service Agent (GSSA) in Latin America. This collaboration marks a critical step in Modern’s international expansion by extending the company’s reach into new markets, including Chile, Argentina, Colombia, Ecuador and Uruguay.

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Modern Logistics’ engagement of ATC Aviation Services reinforces the company’s two-stage strategy for international expansion initiated earlier this year as it brings a high level of expertise in the air cargo sector while strengthening its international presence. The partnership will also ensure a seamless and more efficient integrated logistics operation for Modern’s clients.

The partnership with ATC firmly underpins Modern Logistics’ strategy of expanding services to hitherto underserved markets, which has been significantly aided by the recent acquisition of two 737-800 cargo jets. Earlier this year, Modern Logistics embarked on a two-stage strategy for international expansion, the first phase taking place in August 2024.

Over the past decade, Modern Logistics has grown to become the dominant cargo company in Brazil’s logistics market and is the first and only Brazilian company devoted exclusively to cargo services. Modern Logistics is the only cargo carrier in Brazil that provides an integrated logistics model to serve clients, a key advantage which has driven the company’s market share.

Having cemented its position in Brazil’s vast logistics sector, the company now seeks to materially expand its logistics services throughout South America, leveraging its dominant industry position to firmly establish a market presence ahead of emerging competition.

The company’s initial phase of the expansion of Modern’s service to Colombia, Ecuador, Chile, Argentina, and Uruguay. The second phase will target Mexico and the US within six to twelve

months. Stated CEO Koga, “We will start with at least two weekly frequencies [for each route]. We are still defining the days of the week. In terms of capacity, it is 20 to 22 tons per leg.”

New 737-800 aircraft drive expansion while increasing market share

These expansions are being supported by Modern Logistics’ acquisition of two 737-800 Boeing Converted Freighters (BCFs) over the course of the past year which represents a significant upgrade to its fleet of air cargo aircraft. Modern Logistics acquired its first 737-800 BCF late last year, which marked the first 737-800 ever within Brazil’s logistics industry. Going forward, Modern Logistics looks to acquire additional aircraft for underserved regional airports as part of its five-year plan. “We have options for expanding our fleet. With international accreditation, we will be able to acquire two 737-800 NG aircraft in 12 months,” said Koga.

The availability of the two “next generation” (NG) aircraft, a key milestone for the company, will significantly enhance Modern Logistics’ capabilities in expanding into other Latin American markets, particularly Argentina, Colombia, and Central America, as well as establishing a facility in Miami. For the first time, the larger and more efficient aircraft will position the company to increase market share internationally more easily.

An industry pioneer reshaping and reinventing logistics while propelling supply chains

Modern Logistics, founded in 2012, is an integrated logistics company based in São Paulo, Brazil and is a pioneer in the development of a one-stop-shop model using air freighters to provide logistics services that are materially hastening supply chains across the country.

Both 737 NGs are leased through Babcock & Brown Aircraft Management (BBAM) . The Next Generation of 737s are more cost efficient in terms of ton-miles transported and have a cargo capacity approximately 10 percent larger than the previous generation of 737s. The aircraft have passed certification by PCA Airworthiness and have received final approval by ANAC, Brazil’s aviation regulator.

Modern Logistics CEO Cristiano Koga stated, “We are very excited about the addition of two advanced aircraft to our fleet. The additional capacity and efficiency of the new aircraft will assure the future success of the company by hastening entry into international markets and better responding to the needs and requirements of our clients.”

Currently, Modern Logistics has two 737-800 NGs and two 737 Classics in its fleet. The introduction of the new 737-800s is part of a fleet renewal to enhance operational efficiency. As the replacement of the existing fleet will take place gradually, the company will operate both classic 737s and NGs over the near term.

The incorporation of the new 737-800s firmly places Modern Logistics in a greater competitive position within the industry as the bulk of air logistic firms continue to use older, less efficient 737’s which have been converted to freighters. Modern Logistics provides logistic services throughout Brazil and is authorized by ANAC to serve international destinations.

Vast company infrastructure and capacity support future growth

Modern Logistics’ operations are supported by a vast 32,000sf cargo facility at Viracopos, which can accommodate several cargo aircraft simultaneously. The facility is equipped to meet risk management requirements for transporting high-value cargo across an array of segments, such as industrial, automotive, technology, clothing, electronics, and now pharmaceuticals. More recently, a special distribution centre was opened at Viracopos, exclusively serving the pharmaceutical sector. The opening of this DC makes Modern Logistics the first integrated logistics company in Brazil to have, in a domestic terminal, its own warehouse equipped in accordance with Anvisa’s requirements to serve the pharmaceutical industry.

With an operation that ranges from ground transport with its own and third-party fleet to a quality cargo and warehousing facility, Modern Logistics is well prepared to serve e-commerce in the “middle mile” (with air and road transport from the distribution centres of large retailers;, the “last mile” (distribution centre to the customer’s home); and the “first mile” (from the home to the centres). “We have already started operating for e-commerce, and the expectation is that we will grow in this segment from now on,” says Koga.

In addition to its fleet of Boeing 737s, the company has more than 6,000 vehicles from approved partners for ground operations. Through its seven distribution centres and cargo terminals, goods are efficiently directed to clients via the company’s air and road network from its Viracopos operations base in Campinas, SP.

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