"It is important that established international companies participate in public tenders to help develop projects, such as Vaca Muerta gas, and Logítica Milo can accompany these clients every step of the way."
Can you give us a brief history of Logistica Milo and what the main activities of the company are today?
Logística Milo is a fourth-generation family-run transportation enterprise established in 1905. A few years back we took the decision to grow horizontally and now we offer services such as merchandise storage, ground, air and ocean transportation using our own resources, loads, vehicles, leading equipment and storage cargo, as well as managing the entire customs process including paperwork for both national and international shipments. We provide competitive freight options so that Logística Milo can be in charge of the entire logistics value chain. Additionally, we run our own tax deposit where we carry out the clearance and splitting of consignments. About one year ago we acquired a former chemical plant where we offer industrial washing of iso tanks and drums. Currently, Logística Milo owns 80,000 square meters of premises, three container machines, various forklifts and over 70 freight fleet units that perform more than 150 service operations for industries including petrochemicals, chemicals, tobacco and other industries.
What is the importance of the chemical and petrochemical industries for Logistica Milo?
We are direct and indirect service providers for companies such as BASF, Petroquímica Río Tercero, Shell, Axion and Stolt Nielsen, among others. There are significant quantities of raw materials in Argentina and, if we can generate added value by means of offering new products, there will be the need for more logistical services since there will be higher demand for national and international transportation, storage, splitting of consignments and paperwork support.
Which of Logsitica Milo’s services have been driving business development?
For about a year now, Logística Milo has been providing industrial washing services, which has bolstered our participation in the exportation supply chain. We are able to coordinate freights from the country of origin all the way to Argentina, and manage the clearance of merchandise – be it at the terminal or in our tax deposit. We take empty and dirty tanks to our washing facilities and, after we have washed them, we use them to export directly, load low-margin products with high logistics costs, or make them available to our clients.
How can Logística Milo’s solutions help mitigate current logistics challenges?
To deal with current logistics bottlenecks, we have added further ground transportation services, customs clearance and additional warehousing. In terms of booking maritime spaces, thorough planning is important, as well as having a direct relation with the tank companies. There has been an international increase in the demand for ships, tanks and iso-tanks. As a consequence, Asian import prices have skyrocketed, so we have been looking to source raw materials from neighboring countries. Furthermore, Argentina has experienced ongoing inflation, so we have had to adapt payment terms to reduce risks. Despite these challenges, Logística Milo has been able to provide exceptional customer service, and 2021 has been a good year.
What do you think the Argentinian government could do to improve the business climate in the country?
The most adequate ways the Government could assist is by providing companies with access to loans to update their facilities and equipment, build more infrastructures and invest more in research and development. From a logistics standpoint, multimodal transport systems that integrate truck and railway transportation to create concessions and optimize costs would help a lot, so that one company can be in charge of loading the merchandise at the production plant, take it to the railway logistics center and then to the port and vice versa.
What is Logistica Milo’s vision for the coming years?
Our vision is to increase our participation in the import and export supply chain from the beginning until the end of the service in order to improve the cost per ton transported.
Argentina has a great level of technical capacity, a skilled labor force and is rich in natural resources. Through the development of these resources and their derivatives, the country has a great opportunity to improve its economy. To achieve this, it is important that established international companies participate in public tenders to help develop projects, such as Vaca Muerta gas, and Logítica Milo can accompany these clients every step of the way.