NETLogistiK is an electronic logistics marketplace
Ù NETLogistiK will develop an Internet based B2B logistics marketplace in Latin America withthe objective of allowing shippers to
manage and contract their freight transportation needs more efficiently. NETLogistiK will focus on the medium/large cargo
market. Theline of service will range from single to multiple truckload shipments.
What is the opportunity?
The market is attractive – large, fragmented and inefficient
Ù The LatinAmerican for-hire transportation market is calculated at $50-60 billion
Ù NETLogistiK will originally focus on trucking, which represents around 80% of the market
Ù Preliminaryestimates show that NETLogistiK could generate revenues in the range of $250 million by 2003/4
Ù The industry is highly fragmented. Top 10 players have less than 2% market share
ÙShippers have to rely on several carriers to fulfill their shipping needs. The average medium/large-size company in Latin
America interacts with over 15 carriers
Ù Currentlythere is no efficient way to contract and compare shipping services
The marketplace solution is attractive to both shippers and carriers
Ù Shippers will benefit in terms oftransportation cost and service by extending the choice of carriers and reducing purchasing
Ù Carriers will benefit from expanding their customer reach and the opportunityto optimize back haul loads (return trip)
The development of e-commerce will fuel the size of the market further
Ù The surge of electronic commerce will add to the number ofshipments by promoting trade across geographies
Ù Additionally, the frequency of shipments will increase as a result of more coordination and communication across companies.