Railways: Brazil’s network is short and there is a lack of money, according to experts

The North-South Railroad is the largest railroad in Brazil but more than half of its tracks are out of operation. Planned to be the “backbone” of the national railway system, only 1400 km between Palmas (TO) and Estrela d’Oeste (MT) are operating out of the planned 4100 km. It is a perfect example of the situation of the railway modal in the country: underutilized and underdeveloped, especially in the agricultural sector.

According to the president of ANUT (the national cargo transport users association), Luiz Antônio Baldez, 30,000 kilometers of the Brazilian rail network are in the hands of the private sector, but only 12,000 km are currently in operation.  80% of the cargo consists of iron ore, 15% of agricultural products, and 5% of other types of goods. “Is very little. Brazil needs to expand its rail network to 50,000 kilometers and diversify its cargo,” says the ANUT representative.

To make the situation even worse, Baldez indicates that Brazilian freight is 50% more expensive than in countries that compete in commodity production, such as the United States and Argentina. “The price difference between rail and road freight is practically zero: R$ 120 per TKU (useful ton-kilometer)”, he points out.

“The corn produced in the north of Mato Grosso to supply the pig and poultry farming in the northeast of Brazil is more expensive for the northeastern region than the corn imported from the USA. In the south, the same happens with cereals that come from Argentina. Our logistics are still very precarious in the area of ​​railways and it is difficult to compete with the foreign market”, he adds.

Source: Canal Rural

To read the full original article, visit the link:

https://www.canalrural.com.br/logistica/ferrovias-malha-do-brasil-e-curta-e-falta-dinheiro-avaliam-especialistas/

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