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Modern Logistics’ Enhanced 737-800 Fleet Spurs International Expansion

Modern Logistics is gearing up for a significant international expansion with a strategic two-phase plan set to begin in the third quarter of 2024. According to CEO Cristiano Koga, the company’s first phase will see an extension of its services to Colombia, Ecuador, Chile, Argentina, and Uruguay. Following this, the second phase will target Mexico and the United States within six to twelve months.

A critical element underpinning this ambitious expansion is the acquisition of two 737-800 Boeing Converted Freighters (BCFs). Over the past year, Modern Logistics added these advanced aircraft to its fleet, marking the first time such models have been used within Brazil’s logistics industry. This upgrade is part of a broader five-year plan to bolster the company’s fleet, especially for underserved Brazilian airports.

These new “next generation” (NG) aircraft are a game-changer for Modern Logistics. Their arrival significantly boosts the company’s capacity to penetrate other Latin American markets, particularly Argentina and Colombia, and establish a key facility in Miami. These larger, more efficient aircraft will enable Modern Logistics to increase its market share internationally with greater ease.

Founded in 2012 and based in São Paulo, Modern Logistics has pioneered the one-stop-shop logistics model in Brazil. Utilizing air freighters, the company has dramatically streamlined supply chains across the nation. The two new 737 NGs, leased through Babcock & Brown Aircraft Management (BBAM), offer around 10 percent more cargo capacity than the previous generation and are more cost-efficient in terms of ton-miles transported. They have been certified by PCA Airworthiness and received final approval from ANAC, Brazil’s aviation regulator.

Cristiano Koga expressed his enthusiasm about the fleet expansion, stating, “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, the company operates three Classic 737s. The integration of the new 737-800s is part of a phased renewal to enhance operational efficiency. During the transition, Modern Logistics will operate both the classic and NG aircraft to maintain service continuity.

This strategic fleet enhancement positions Modern Logistics competitively within the industry, where many air logistic firms still rely on older, less efficient 737s converted to freighters. Modern Logistics is authorized by ANAC to operate internationally, and its robust operations are supported by a 32,000 square foot cargo facility at Viracopos, capable of accommodating multiple aircraft and meeting stringent risk management requirements for high-value cargo.

Recently, the company launched a specialized distribution center at Viracopos dedicated to the pharmaceutical sector, making it the first integrated logistics firm in Brazil to have an Anvisa-compliant warehouse within a domestic terminal.

With a comprehensive operation that spans ground transport using both its own and third-party fleets, coupled with top-tier cargo and warehousing facilities, Modern Logistics is poised to serve the burgeoning e-commerce sector effectively. CEO Koga noted, “We have already started operating for e-commerce, and the expectation is that we will grow in this segment from now on.”

In addition to its fleet of Boeing 737s, Modern Logistics boasts more than 6,000 vehicles from approved partners for ground operations. Through its seven distribution centers and cargo terminals, the company efficiently routes goods to clients via its extensive air and road network from its Viracopos base in Campinas, SP.

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