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CargoX

Project number 13095-01
Country Brazil
Sector Telecommunications, Media and Technology
Status In implementation

Basic information

Company name
International Logistics Holding, LLC
Investment type Equity
E&S category
B
Disclosed date
Projected board date
Approval date
Signed date
Team Leader
Arauz, Gonzalo C.

Financial Summary

Syndicated Amount $ 5,000,000
Financing amount $ 10,850,000
Financing Currency
USD

Client
information

Daniel Ferraz
CFO
+55 11 97625-6023
daniel.ferraz@cargox.com.br

PROJECT
SCOPE
AND
OBJECTIVE

IDB Invest is considering an investment of up to US$15 million in CargoX (the “Company”).  The latter is perhaps the largest trucking marketplace and online freight broker in Brazil. CargoX's platform enables truck owner-operators to make use of excess capacity and avoid empty return trips, thus improving freight visibility, reducing shipping costs, reducing emissions, and boosting income for truck drivers.

As the Company grows, it expects to positively impact thousands of truck drivers and small and medium enterprises (“SMEs”) across Brazil and potentially to Latin America. IDB Invest funds will be used for technology building, marketing & sales initiatives and general working capital needs. 

During covid-19 emergency crisis, online platforms such as CargoX have become a key tool for resilience for the transport sector and supply chains in Brazil.

Environmental
and
Social
Review

The project has been classified in category B, in accordance with IDB Invest's Environmental and Social Sustainability Policy because its environmental and social risks can be mitigated via measures that are available and feasible to implement in the context of the operation.

During the process of Environmental and Social Due Diligence (“ESDD”), IDB Invest performed a desk review of information provided by the Company and held interviews with its senior executives. Due to the impossibility to visit the Project’s site during the Corona Virus Pandemic, the ESDD relied on the documentation provided including photos, videos, and maps.  The process was focused in evaluating the following aspects: i) the Company’s Environmental & Social Management System (“ESMS”); iii) the effectiveness of the platform to prevent environmental and social (“E&S”) impacts; and iii) the risks derived from third parties (carriers and shippers).

Based on the information received and reviewed the Performance Standards (“PS”) triggered by the Project are: PS1 Assessment and Management of Environmental and Social Risks and Impacts; PS2 Labor and Working Conditions; PS3 Resource Efficiency and Pollution Prevention; and PS4 Community Health, Safety, and Security.

The Project’s Environmental and Social Review Summary (ESRS), prepared after the conclusion of the ESDD can be downloaded from this website.

Related Documents

Additional
Information

For project inquiries, including environmental and social questions related to an IDB Invest transaction, please contact the Client (see Investment Summary tab), or IDB Invest using the email requestinformation@idbinvest.org. As a last resort, affected communities may access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or  MICI@iadb.org, or calling +1(202) 623-3952.

For inquiries, comments and requests about the project

For inquiries, comments and requests about the project

Information Request