Welcome to Log-In LogÃstica Intermodal conference call to discuss 1st quarter 2025 conference. I'm Sandra Calcado, Log-In's Investor Relations, Strategy and ESG manager. And I will be your hostess during this event. The presentation and comments about the results will be made by Log-In's CEO Marcio Arany, Pascoal Gomes, Finance and Investor Relations Vice President; Marcus Voloch, Coastal Shipping VP; Gustavo Paixao, Terminals Officer; and Mauricio Alvarenga, Road Cargo Transportation Officer. They will comment on the company's performance and main highlights of the quarter. Then they will be available to answer questions that you might have.
The slides presentation and earnings release in both Portuguese and English are available in the results center of the company's IR website and we will be showing the presentation in Portuguese here on Zoom, in addition to the rooms available in Portuguese and English, we will also provide Brazilian sign language interpreting during the whole event. [Operator Instructions] Be advised that this webinar is being recorded and will be available on the company's website.
Before proceeding, as usual, we would like to clarify that forward-looking statements that might be made during this conference call relative to Log-In's business perspectives, outlook, projections and operating and financial goals are based on the beliefs and assumptions of Log-In's management and on information currently available to the company.
Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions, and they depend on circumstances that may or may not occur. Investors should understand that general economy conditions, industry conditions and other operating factors could also affect the future results of Log-In and could cause results to differ materially from those expressed in such forward-looking statements.
Now with the legal disclaimers made, I'd like to turn the floor to Marcio Arany, Log-In's CEO, to start with his initial remarks.
Good day, everyone. This is as Marcio Arany speaking, the company's CEO. I would like to thank you all for attending Log-In LogÃstica Intermodal's first quarter 2025 conference call. We'll start our presentation on slide 3 as usual by reviewing the main Q1 '25 achievements of our strategic plan in four blocks: Coastal shipping and integrated solutions, TVV, road, cargo transportation; and ESG. Coastal shipping business, we highlight highest container transportation volume with 194,100 TEUs transported, highest NOI for shipping, BRL 462 million and an all-time record in the feeder revenue, BRL 221 million. [indiscernible] note also signing up the contract to operate the new 70,000 square meter area located next to our terminal.
A 48% improvement in TVV's operating productivity following the completion of the retrofit in September last year and the highest NPS achieved since 2022, which put us in the improvements of transportation highlight. The 40% reduction in container transportation incidents and the signing of a contract with BNDES to fund the fleet expansion project of Tecmar and Tecmar Norte. The fourth and final point refers to our ESG agenda and capital structure, where we highlight savings in tons per vessel bunker fuel consumption as a result of the renewal of our fleet of ships, obtaining a B- rating in the CDP Carbon Disclosure Project, which is an excellent result and the new class of the company's internship program. Now our team will present the quarter's results, starting with Pascoal Gomes, Finance and Investor Relations VP.
Thank you, Marcio. Good morning to all. It's a pleasure to be here to present Log-In LogÃstica Intermodal's consolidated results for the first quarter of 2025. So starting with net operating revenue. We achieved an all-time record for the first quarter totaling BRL 683.8 million, an increase of 7.4% compared to the same period of 2024. This result, as Ignacio mentioned, was mainly driven by Coastal Shipping. Coastal Shipping recorded its highest NOR for the period, BRL 462 million. I would highlight the all-time record revenue from the feeder trade because as Marcio said, it reached BRL 221 million, benefiting mainly from increase in volume and the appreciation of the U.S. dollar. Mercosur revenue grew by 37%, reflecting Argentina's economic recovery and the positive impact of currency appreciation.
Moving on to adjusted EBITDA, we recorded BRL 153.1 million in this quarter, up 6.8% compared to Q1 '24. Despite the 0.8 percentage point reduction in adjusted EBITDA margin, the performance was sustained by NOR growth especially in coastal shipping. Cost of services provided grew by 10.3% and these costs were influenced by higher variable costs such as container handling, purchase slots and road transportation as well as higher fixed costs driven by the expansion of our operating capacity with the addition of one more company-owned vessel and the new service SSN compared to Q1 '24. Operating expenses fell by 11.3% to BRL 35.3 million.
This result was favored by the reversal of non-materialized contingency expenses, offsetting decrease in administrative expenses, which stemmed from collective bargaining agreement. First quarter of 2025 was marked by a solid performance with growth in revenue and adjusted EBITDA despite challenges related to costs and market competitiveness. We remained focused on strengthening our position in the logistics sector and capturing growth opportunities. Thank you. And I now hand over to Marcus Voloch, Coastal Shipping VP.
Good morning, everyone. This is Marcus Voloch, Coastal Shipping VP. I'll start on Slide 5 by highlighting a 24.6% growth in total volume handled in Q1 year-on-year, totaling 194,100 TEUs. It is worth pointing out the continued growth in feeder cargo and in the Mercosur's trade reporting 17% growth over Q1 '24. In Q1 of '25, according to data from the Brazilian Association of Cabotage Shipowners, ABAC, volume of containers handled by Cabotage in Brazil grew by around 5%, while [indiscernible] quarter is slightly decreased. Despite that market grew by 20%, driven mainly by Log-In's strong growth of [indiscernible]. Our market share in this segment exceeded 60% in total, cabotage plus feeder, Log-In's market share ended Q1 at 44.7%, an all-time record for the company, which probably places us in a number of containers handled as the largest container cabotage company in Brazil.
Focusing a little more on Cabotage, the contraction in volumes in Q1 is due to the fact that we operated with one less vessel in our "Amazonas Express Service. On the one hand, we reported a drop in volumes, on the other hand, we made full use of our capacity with a favorable mix between cabotage and feeder in the Mercosur trade. As I mentioned earlier, Q1 saw a 17% increase in the volume transported, confirming the trend towards recovery in this market. Our team remains committed to the commercial strategy of bringing also in Mercosur trade new transportation alternatives to the market, migrating from road to international multimodal transportation.
Moving on to Costal Shipping network, we posted a record for the first quarter of almost BRL 462 million, up 20% year-on-year, mainly due to the recovery in Mercosur and the continued increase in feeder volume growth possibility. EBITDA totaled BRL 108.2 million, up 7.1% year-on-year, but with loss of 2.9-percentage points with an EBITDA margin of 23.4%, the result of a greater mix of feeder cargo whose contribution for container [indiscernible] and also pressure on cabotage freight. In this first quarter, we achieved a level of punctuality of our ships of over 9%, which did not happen for a longtime given the critical conditions in most Brazilian ports. This is starting to translate into more volumes for the second quarter as when we reassigned the port vessel to [indiscernible].
As we have said on a number of occasions, in mid-2024, we set up an unmanned service for the port of Navegantes was undergoing construction work after 12 months and with the most critical period behind, in April, we ended service migrating our new vessel, Log-In Evolution to the Manaus service, where she would complete our fleet now with four ships in a stand-alone service, it is in which Log-In operates alone. As a reminder, about 23 years ago, Log-In operated only one vessel on this route, now we operate four, demonstrating our confidence in the continued growth of this market, both domestic and feeder cargo. I will now hand over to Gustavo Paixao, who will present terminals results.
Thank you, Voloch. Good day. This is Gustavo Paixao speaking, Terminals Officer. And now I'll be sharing with you TVV's results for the first quarter of 2025. So starting with the volume of containers handled our main cargo. In the first quarter of 2025, we handled 50,500 boxes at TVV, a relevant number for a first quarter. And this was the second-best result in our history for a first quarter. However, it is still 10.3% down compared to the same period in 2024, which obviously holds the all-time record for best first quarter in terms of container throughput at TVV. This reduction is a reflection of two main issues. Firstly, a sharp drop in coffee exports, which are now in the off-season after an exceptional year. The export figure for 2024 even broke a record for coffee exported through EspÃrito Santo, which dated back of 2002 as a result of a number of factors such as good prices, improved competitiveness of Brazilian coffee in the international market and more attractive freight rates.
Another important factor was the reduction, which was already expected in imports of electric vehicles in Q1 '25. This figure contrasts with what we experienced in the first quarter of last year when imports of EVs in flat racks were at their peak. And in additional cargo handled, we don't see a very different scenario from that presented for containers since we also see a cooling in the handling of that type of cargo year-on-year. We handled approximately 102,000 tons, around 20% lower compared to the first 3 months of 2024, which was also up steady for the first quarter. Here the sharpest reduction was in cargo such as steel products, which have the characteristics of cargo that serves specific projects and on demand and also in the handling of granite blocks impacted by low demand from consumer markets. This scenario resulted in NOR of BRL 88.1 million, practically in line with the results achieved in Q1 of last year, which shows the positive impact of the mix of cargo handled at the terminal, which helped to partially offset the drop in volumes since the first 3 months of 2025.
EBITDA totaled BRL 36.8 million down 9.7% year-on-year direct reflection of the lower container throughput at the terminal, containers having a higher contribution margin in our business as well as a reflection of higher personnel costs, albeit a marginal increase. Moving on to the next slide, I'll give you a brief status of where we stand in relation to our construction schedule and our new exploration area. In fact, that was duly disclosed together with the 2024 end of year results. It is worth highlighting and emphasizing that in practical terms, this represents an increase of around 70% in our operational area. The contract provides for 6 years of operation with an almost immediate investment of BRL 35 million. It aims to meet the growing demand for foreign trade in EspÃrito Santo in Brazil, reinforcing the role of Log-In in the development of the state, strengthening the partnership with our customers and ratifying our position as the main supplier at the Port of Vitória, acting as a multipurpose terminal and offering diversified port services with quality, safety, innovation and agility.
We now have 20% of our civil work scheduled completed in line with our initial planning. Therefore, the expectation is that this area will be completely renovated with all licenses duly enforced and operational from the end of the third quarter of 2025. Well then these are the results and material sites of the terminals operation for the first quarter of the year. On one hand, Q1 shows a reduction in volumes and financial results year-on-year. On the other hand, Q1 also reflects a scenario already expected and duly considered in our budget assumptions for the period. This concludes the presentation of the results of the Terminals division. And I now hand over to Mauricio Alvarenga, Officer responsible for Tecmar Transportes, who will continue. Thank you.
Thank you, Gustavo. Hello. Good day, everyone. This is Mauricio Alvarenga, Tecmar's executive Officer. The year is historically very challenging for the road transport market, mainly due to less demand because at the end of the year and in the beginning of the year, we have a downward pressure. It's a low season on prices in the market in general. This market faces a price pressure given excess capacity. So here at Tecmar, in this quarter, we focused our efforts on growing our container transport operation volume, which is much more linked to imports, exports and capital and also focused on improving our level of LTL and FTL operations, less than truckload and full container load or full truckload. And another focus of ours since last year has been cost control. You know why it was down by 7% compared to the previous year due to two main reasons.
First, because we discontinued the volume of some customers that were no longer adding margin to the business. And second, due to the seasonal nature of the operation. One seasonality was in Tecmar Norte, our Manaus operation, the former [indiscernible]. In 2024, last year, we had an extremely strong and atypical operation in Manaus in January and February was atypical because we have the 2023 drought, a lot of goods didn't get to Manaus in the end of 2022. But then in 2023, all the volume arrived in Manaus, and that, led to a lot of business to [indiscernible]. In turn, at the beginning of 2025, we didn't have this effect of a cargo backlog. We didn't have that cargo backlog in 2024 as the contingency operation during last year's drought went very well and did not lead to this backlog. We never had any [indiscernible] in our deliveries.
So at the beginning of the year was normal with lower seasonal effect. Our EBITDA was negative by BRL 500,000 this quarter. Similar to last year, the EBITDA was slightly positive last year. On the cost control side, we are working harder to improve productivity at our branches, particularly in what regards cargo handling, and we are working to optimize fixed costs. You will remember, we optimized eight branches last year, and we are working hard to adjust fixed costs for these branches. We are also working hard in the last mile to improve and optimize vehicle occupancy in distribution. So we are working hard on vehicle occupancy in the last mile. When we compare Q1 2025 with the fourth quarter of 2024, even in a period of different seasonalities, the last quarter having a lower seasonality, it is already possible to see positive progress in the restructuring work that we are carrying out in the company, what we call the turnaround project for the company.
Now speaking briefly about synergies with the group. We made good progress in our synergies with Log-In. Log-in has the customer, Tecmar handling LTL, we shipped 810 TEUs in cabotage in the quarter. This creates value for Tecmar and also for Coastal Shipping. And from the point of view of container transportation, where Tecmar is a supplier of Log-In, Tecmar carried out 11,600 operations in Q1 2025 in the four bases we have for container transportation in Santa Catarina, Santos, [indiscernible] and this improves lagging cabotage volumes and also volumes from import and export customers. And in the second quarter of 2025, we continue to intensify synergies with the group and also to secure new customers and projects. Our restructuring process continues with a focus on optimizing productivity and costs, as I mentioned. With that, thank you for your attention, and I'll hand over to Pascoal, who will continue the presentation.
Thank you, Alvarenga. Moving on to speak about our leverage expressed by the net debt over EBITDA indicator that we see in the top right-hand corner. It stood at 1.8x in Q1 '25, a 10% improvement over the previous quarter, reflecting an increase in cash, operating cash generation, combined with higher EBITDA over the last 12 months. Regarding our debt, there's no recent news. Our cost remains very competitive, the average cost of our debt portfolio. And this is the work that we've been doing to replace debt. We also have a new project, trying to replace less attractive debt with better and longer ones, this is a constant work that we do. Our debt structure is quite healthy, and we are well positioned in relation to our main covenants. Moving on to the next slide. I would like to share with you progress in our ESG agenda. This agenda is a strategic pillar for the company's sustainable growth, starting with the environment. We had important achievements in the fourth quarter of 2025.
Our more modern fleet of ships in which we have been investing a lot in recent years is also more efficient, reducing bunker fuel consumption by 17% per ton transported compared to the same period in 2024. In addition, achieved a B- score rating in the CDP, as Marcio mentioned earlier, reinforcing our commitment to transparency and environmental management. We also carried out social and environmental social actions such as the community onboard project in partnership with Esperanza Social Institute and campaigns to raise awareness about the importance of water in line with World Water Day. And we also successfully completed the ISO 14001 maintenance audit. On the social front, we continue to invest in initiatives that drive inclusion and development. I would highlight the new class in our internship program as well as actions aimed at strengthening female leadership in a program we call ELLAS.
We also promoted discussion circles with Mulheres da Ilha Group. These initiatives reflect our commitment to diversity and a positive impact on the communities where we operate. Finally, in terms of governance, we made progress integrating Tecmar and Norte into Tecmar's SAP system with logins SAP system, thus ensuring greater uniformity and efficiency in our back-office processes. This initiative reinforces our quest -- our ongoing quest for operating excellence and transparency. In a nutshell, we again remain committed to building a sustainable business model that balances financial results with positive impacts on the environment, society and governance as well as positive impact for our shareholders. We will continue working to strengthen our ESG agenda and consolidate our position as a network and sustainable logistics solutions. I now give the floor back to Marcio, CEO.
Thank you Pascoal, Voloch, Gustavo, and Alvarenga. We now move on to the question-and-answer session.
Thank you, Marcio. We will now begin the Q&A session. [Operator Instructions] We have a question from Max [indiscernible]. In the Q1 quarter '25 release, you mentioned a more challenging competitive landscape and the arrival of a new player in the market. Could you elaborate a little more about who this new player is? And what was the effect of this more competitive landscape on freight rates and on the routes that the company operates? And what were the adjustments made?
Thank you for the question. I'll ask Voloch to answer the question.
Thank you, Marcio and thank you Max, for the question. Well, the new competitor is a company called the Norcoast, a joint venture between Norsul and Hapag Lloyd, a German company. They are one of the leaders globally. They didn't have a cabotage service in Brazil, although they do have a presence in Brazil. And with this joint venture with Norcoast, they opened a cabotage operation in Brazil with all vessels taking advantage of the new, they are the one. By the end of 2023, the cabotage market was stretching space, back then, we brought in new vessels. With the arrival of Norcoast, this pressure of forward space kind of settles. But when they have four new vessels abruptly arriving, of course, the competition becomes more fierce. And the level of utilization of the market dropped substantially. So we had been running at 100% or close to 100%. And now with the cabotage cargo, it's also below that. But we complemented that with feeder cargo. So there was a reduction in the levels of freight rates, we took advantage of that to develop our feeder vertical, which had more room to grow in the market. We quickly adapted and volume came very quickly and with a decent profitability. And this is how we adjusted to this new market reality.
The old timers in this segment will remember that we had moves to increasing capacity recently. These moves normally happen step by step in large stripe. And what is interesting in cabotage is that demand quickly catches up with the supplier space. You see that with more -- we have to make more trading efforts. There are more cabotage players in the market trying to convert cargo from route to cabotage. This is a space that is created, and it has rapidly evolved. Today, for example, we already see again, healthy levels of utilization. There was a drop, but it is resuming growth. First quarter last year was really, really strong for those reasons mentioned by Alvarenga, there was a giant intake backlog after the drought in December. So Q1 '24 was really strong and Q1 '25 this year also posted a 5% growth over last year. So like I said, this added capacity is quickly absorbed by a market that is also growing. So we're okay about this. Yes, there was a decrease in profitability of domestic transport, but this was quickly complemented by the feeder trade. Sandra?
There is another question from Max, long question. [indiscernible] increment in cost of brewery and in the bottom line of Coastal Shipping between Q3 '24 and Q4 '24. In Q1 '25, we see that it is settling in the [indiscernible]. At the same time, we will continue to increase average upgrade of the main trans-ocean route, also showed a slight decline in the [indiscernible] trade, significantly distinguished from those of the index. From the standpoint of freight and contract pricing as well as profitability of operation, is there any influence of this index in terms of freight rate? Second question, does it make sense to you to monitor this index or the proxy in terms of pricing? And the third question, which routes are the most important for you, particularly in long-haul shipping and feeder.
Max, thank you for the questions and Voloch over to you.
Okay. So let's break this question. We don't link our feeder prices to any international contract. They work within an index or the Shanghai Freight Index for very simple reason. The domestic market is substantially more stable than the international market, which is substantially volatile. Our costs do not depend so much on the international market. What varies is the price of the ship, and we have our own depreciation of the ship, which accounts for a substantial cost, gigantic cost pressure, bunker and port duties. Port costs are reasonably under control, but the costs increased substantially last year. So this year, it should be higher. Bunker prices pressure decrease with the oil prices dropping and this has a reflection on bunker prices.
And like I said, we have the crude cost that is more complicated because we lack workforce in the market. And these are the main components that make up our costs. When we work with other shipowners for feeder, they have access to how much it would cost to set up a service. So this is not an inflation linked to international freight cost, but rather to our own costs. We have a very transparent relationship. If the bunker price drops significantly, I have savings. And sometimes we pass these costs through. If the price of bunker increases, we pass that through as well. So we have bunker price that is transparent for everyone. And like I said, when we start cost pressures for crews or the vessels, we also have triggers to discuss this with international shipowners. So this is basically how we price our product.
What was the next question really, I think we kind of answered [indiscernible] if it makes sense to follow this proxy. So we have two vessels dedicated to the project [indiscernible], so this is one of our strengths in feeder. And what is developing more and more is our coverage of the North and Northeast. With the bigger ships and international ship owners, these ships do not call the secondary ports because they need to be more productive in the bigger ports because they cannot fit most of the smaller ports. So what's happening is more and more international -- large international shipowners are using cabotage players to handle their first or last mile imports or exports of their volumes in Brazil. And Latam is more relevantly positioned in this market. We became a stronger player in the last 2 years. So the main points are Port of Vitoria in north of the country. Sandra back to you.
Thank you, Marcus. We have a question from [indiscernible].
Congratulations on having the whole management here on the call, I think that this is really cool in terms of governance. And I would like to ask two questions in terms of capital structure. I think this question is addressed to Pascoal. My first question is regarding leverage. We can see a second consecutive quarter with a reduction in leverage. There was an inflection point in Q3 '24. And looking at 2024, we're signaling that this year will involve less CapEx. We see the beginning of the year with a better operational part, which leads us to think that this will be a year with more cash generation and less leverage looking at it. So, Pascoal, my first question is, how do you see this deleveraging from now to year-end? And then I will ask my second question.
Excellent, thank you. It's a pleasure to be speaking to you. So what we are doing now is creating a cushion because in the future, we will need to invest again more intensely. So this year, we have the CapEx that Gustavo mentioned for the new area that is right next to TVV. We'll invest about BRL 35 million to have the project up and running. But this is CapEx that can be executed with our cash generation. But starting in 2026, we'll start a stronger docking cycle. We'll be docking our vessels. we'll be docking them in a line, in a queue over a period of around 2 years, and we will need to invest in that. Of course, we will have to evaluate whether it makes sense to bring new vessels and to replace the docked assets. This is a normal monitoring that we do.
We look at the market. We see the price of new versus old vessels. We compare the performance of the new ships compared to the performance of the current vessels we have in our fleet. As you know, this industry is going through regulation regarding greenhouse gas emissions. So this is also taken into account in this kind of evaluation. Other than that, we have plans to expand and this has always been discussed. And opportunistically, we even consider M&A deals. So in the future, we will most likely need to invest more. So being very objective, this a year that given EBITDA and cash generation, we will deleverage the company some more. We are at a very comfortable leverage level because the idea is to create a cushion so that we can resume investing in the main businesses of the company.
Excellent. My second question is kind of answered already. And I think that this was raised in the past call regarding dividend distribution. And I'm asking that because it's a combination of deleveraging with a better operational results, an increase in the operational results, kind of clear that this is a good year to grow the profits of the company considering in the past, the company still has an accumulated loss in the balance sheet of BRL 290 million. Naturally, this would prevent any dividend payout. We have equity. The company has equity. If it is the wish of the controlling shareholder, perhaps you could make some accounting changes to neutralize this accrued loss with equity and that would allow dividend payout if it were interesting for the controlling shareholder. So want to provoke you is this something that the company is considered, is it something that the company is considering, or you want to reduce the accumulated loss with the growing profits expected for 2025 -- '26.
Yes, you're right, it's option B. We will zero that balance sheet loss. We have been doing this over the recent years with accumulated profits. Dividend distribution is something that we intend to do. But we want to grow a lot before that. This is in our strategic road map in terms of expanding our capacity in our main businesses. It's something we've been doing in recent years. In the last 5 years, we invested more than BRL 1 billion in assets, equipment for the terminal, in acquiring new companies, replacing our fleet of vessels and trucks and we will continue with this pace of investment. This will naturally require cash. You know the Brazilian environment and the environment abroad. Credit is not easy. Funding is more expensive and difficult. So we're always looking at our capital structure to make it healthier so that it will enable us to grow in the future. So dividend distribution is not something that is being considered at this point because we need to make this company grow.
We have another question in writing from Danilo [indiscernible]. He has two questions. The first is docking operations mentioned by Pascoal, will they be carried out in national and/or foreign shipyards? Are these services already contracted by the company? This is the first question.
Thank you, Danilo, for the question. I'll answer it myself. We always prioritize working with national shipyards, but it's not always possible given the availability of the physical capacity to service our ships. So we do consider redirecting the vessels abroad. But at the moment, nothing is defined.
Second question from Danilo, is there any prospect of another severe drought in the northern region in 2025 as in the previous...
Danilo, our expectation is that the drought will be less severe than in previous years. There are some important indicators as level of the river year-on-year. And this is indicating that the drought will be softer this year. But we can only predict this in July and August when we can survey what's happening and we can monitor the water level in the Amazon River. Voloch, would you like to add anything?
Not much, I think you said it all. But to give you some peace of mind, we have a line to Manaus for the operator to use of the of the pier if necessary. We expect that there will be no complete interruption of navigation. And as Marcio said, it's too early to give you a firm position on this. But with the current level, it's about 2 meters above the level last year at the same time of the year. So it all indicates that the vessels will use the floating here. We will have the excess volume on the barges and will be Manaus bound. The point is that together with the Manaus operators with our partner there, we found a mechanism that can release the drought constraints. And we can do this very efficiently, not efficient, but it's effective, not the best productivity in the world, but it did solve the problem anyway. So this is our expectation. We are a little more optimistic than we were last year.
Thank you, Marcus. We have another question in writing from Carolina [ Oliveira ]. Could you comment on the regulation of emissions, which is underway?
Thank you, Carolina. Well, I can quickly answer that. This is an IMO initiative of some years already, and they are finalizing the regulation now. Our association ABAC, the Brazilian Association of Shipowners has been supporting this initiative with studies and very important discussion. This regulation sets carbon emissions over time. So putting it simply, if you're above that level, you'll pay a panel that will go to fund-to-fund technological innovation. If you're below that level, you don't pay a fine. And if you're way below, you might even get a credit because you were able to reduce the GHG emissions.
So we are following this closely. Brazil, as a country, will need to take a position on this because there's a whole issue regarding the fuel chain that would be most suitable to our country. This is important because our country is visited by ships from all over the world. So we have to be in keeping with some corridors of routes globally. And also in cabotage, we need -- which is our own business, we need to define a green corridor along our coast so that we can supply our vessels with these "green fuels."
Thank you, Marcio. We have another question in writing from Marcelo [ Andrez ]. Feeder was the highlight in the quarter. Can we expect this growth to continue in 2025? Is there any expectation of creating a new feeder service to meet the demand?
Thank you, [ Andrez ]. I'll ask Voloch again to answer this question.
Well, feeder demand is very much aligned with the strategy of a large global ship owners, like I said in -- when I was answering Max's question. The larger the ships coming here, and this is a natural trend. To give an idea, today, ships are operating in the large global routes, Europe, Asia [indiscernible] 23,000 TEUs. The biggest in Brazil 12,000 to 13,000 TEUs and operating with difficulty. And we'll be getting next-generation ships. And these ships will be concentrated on calling in some restricted ports, and it will help us players to handle the last mile to meet the needs of these large international vessels. My expectation is that the feeder trade will continue to increase. And we are a stronger player in this segment. We have become strong in the last 2 years.
And I think we've been very successful in terms of developing services dedicated to feeder; this will happen on demand. If there is a specific demand from one or more ship owners with sufficient volume that will justify bringing a new ship or constructing a new ship or chartering a new ship, Log-In is willing to do so. Today, we are able to serve our market well. Like I said in Vitoria, we have two dedicated vessels. That's a port where the large ships cannot call on because there's a big rock there, the big vessels do not fit. So we have two dedicated ships to make sure that the port is well served. And if there is another need, as was the case in Navegantes a month ago, we can have an on-demand service. So this is an opportunity that continues to be explored by Log-In and we will continue to do so in the future.
Let me add to what Marcus said. Log-In always had a policy of having a white flag. We offer to all shipowners. All shipowners operating in Brazil are Log-In customers because we offer competitive prices. We want to be the supplier for this market.
And Marcio, let me quickly add a comment about the emissions. It is well known that the main mode of operation of Log-In is the ships When we compare the level of emissions per ton transported comparing with the main transportation mode existing in the Brazilian transportation matrix, which is road, there is a reduction of emissions by almost 80%, 80% of reduction of emissions per ton. So we expect that this will be looked at and will enhance cabotage in the future because if we have a genuine goal to reduce emissions as a country, we have to foster cabotage to achieve this reduction in emissions in the future.
Thank you, Pascoal, Marcus, and Marcio. Well, if there are no more questions, I would like to thank you all for participating. And I turn the floor back to Marcio Arany, our CEO, for his final statements.
Perfect, Sandra. I think that we ended a challenging quarter with a very positive result for the company as a whole. We had the opportunity to sow important seeds for the company's growth, such as the expansion of the Amazonas Express Service, SEA, the new area right next to TVV that requires investment, but that will bring us an even better level of service at the terminal with new capacity and a new ability to work with different cargo and the expansion of Tecmar's freight. I think that these are seeds that we sowed, and we'll start reaping the fruits of that along 2025 and some of them a little beyond of that.
Our team remains motivated to overcome, as always, to overcome the difficulties and to provide good results. Yet, this is a period where we have more competition. But you know, this momentary excessive capacity will settle. We always continue to convert from road to sea transport. And we have our road cargo transportation also working in that direction of bringing more cargo from road to sea. And we hope to overcome this more tense period and enjoy vigorous growth in the future. Lastly, thank you for your attention on this conference call. Have a good rest of the day. Thank you.
Thank you. The conference call of Log-In LogÃstica Intermodal to review first quarter 2025 earnings has ended. You may disconnect and have an excellent day.
