Asian invasion

Latin Trade, May, 2003

VarigLog, the logistics unit of embattled Brazilian airline Varig, plans to open a second office in China during 2003 to service growing trade ties between Brazil and China. The new Shanghai office will manage VarigLog's Asia-Pacific business, which was previously handled by its Hong Kong office.

Brazil's trade ministry, the Ministro do Desenvolvimento, Industria e Comercio Exterior, says exports to China increased to US$2.3 billion in 2002 from $1.8 billion the previous year, while imports from the Asian nation have grown 15%.

VarigLog restructured its operations in an attempt to make up for approximately $34 million in losses during its first 18 months of operation. Increased business in China will be one of the company's few investments in 2003.