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Company Already Has 1579 Leased Assets, Among Yellow Line Equipment, Green Line, and Trucks. Fleet Expected to Reach 2080 Assets in 2024, with New Contracts.
Simak Rent, a company created by the Manserv group in 2023 to compete in the Brazilian heavy vehicle rental market, plans to invest R$ 2 billion by 2026 in fleet expansion, digitalization of operations, and business expansion in the country.
The company closed its first year of activity with gross revenue of R$ 242 million, net revenue of R$ 220 million, 18 new contracts signed, and 1579 assets in operation, including yellow line equipment, green line, and heavy and extra-heavy trucks. The data was audited by Ernst Young.
In 2023, the company invested R$ 400 million to initiate the project. Simak Rent started operating in March of last year and its contract portfolio already totals R$ 1.6 billion in long-term agreements.
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“We had an excellent first year of operation. Today 97% of the fleet is allocated to long-term contracts, with an average duration of 52 months, we secured 18 new contracts throughout 2023, and we are experiencing strong demand growth for new projects at the beginning of this year,” says Simak Rent’s CEO, Anderson Antonio de Abreu.
Simak has contracts with companies in 22 sectors of the economy, with significant presence in areas such as mining, fertilizers, chemicals, steel industry, and energy. The company projects a 32% fleet expansion in 2024. “We are expected to incorporate 510 new pieces of equipment throughout this year to keep up with the growth of operations,” says Simak’s CEO. “Just in the first quarter, we already placed orders for 200 assets to meet new contracts.” The expectation is to close 2024 with 2080 assets in operation.
The yellow line equipment (wheel loaders, excavators, among others) accounts for 36% of Simak’s fleet. The green line segment accounts for 5% of the assets and includes equipment for agroforestry activities. Trucks (heavy and extra-heavy) make up 59%
One of the central points of Simak’s operation is the intensive use of technology to offer differentiated services to clients, as well as to optimize the company’s operational efficiency. Simak is investing R$ 7 million in digital transformation, incorporating cutting-edge platforms for data analytics, process restructuring, and team training, in the continuous pursuit of ever-increasing levels of excellence and competitiveness, becoming a data-driven company.
The initiative plans to launch a monitoring center supported by a proprietary platform by the end of this year, capable of monitoring operational parameters of equipment from various different manufacturers, integrating with ERP for cross-referencing information on processes such as maintenance, in addition to the use of specific algorithms for decision-making and generation of alerts and recommendations.
The goal is to use the telematics systems embedded in the equipment to obtain data and use the platform for analysis and generation of management reports to clients, indicating position, status, usage conditions of the equipment, and preventive measures to reduce fuel costs, control CO2 emissions, and mitigate accidents, wear and tear, downtime, and maintenance. “We will use our know how to generate value, helping clients manage their fleets and their application in the field,” explains Simak’s CEO.
This year Simak also aims to complete the construction of its operational center in the city of Contagem, in Minas Gerais, which will receive R$ 35 million in investments. With an area of 22,000 m², Simak’s Operations Center is located close to the ecosystem of major national highways, facilitating the logistics of equipment.
The company has 601 employees. By the end of 2024, there will be 700. Simak Rent is present in 22 states and has 140 sites spread across the country.
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