Modal shift in Paranaguá as rail cargo movement surges

The Port of Paranaguá witnessed a substantial increase in rail cargo movement in May this year, reinforcing the growing prominence of this transportation mode. Rail transport accounted for 19.52% of the total cargo that arrived or departed from the ports based in Paraná, surpassing last year’s share of 18.10%. Specifically, out of the 6,125,887 tonnes handled in May 2023, a remarkable 1,195,747 tonnes were transported via railways, compared to 953,662 in the same month the previous year.

“This notable increase was particularly evident in the transportation of soybeans and containers. As rail cargo movement continues to grow, we observe a simultaneous decline in road transport,” explains Luiz Fernando Garcia, the director-president of Portos do Paraná. In May 2022, road freight represented a significant 80% of the total cargo handled, but this figure dropped to 78.61% in the corresponding month this year.

Analyzing the breakdown of specific cargo types, it becomes apparent that the shift toward rail transport is gaining momentum. Of the 2,039,367 tonnes of soybeans exported from the Port of Paranaguá in May 2023, 77.18% were transported by trucks, while 22.82% were moved via railways. In May 2022, out of the 817,163 tonnes of soybeans, 82.54% relied on road transport, while only 17.46% utilized rail.

Similarly, when it comes to container shipments, the trend of rail transport gaining ground is evident. Last month, out of the 941,514 tonnes of containers handled at the port, 84% were transported by road, whereas 16% were moved by rail. In May 2022, road transport accounted for a larger share of 86.27%, with rail transport comprising 13.73% of the total container volume.

“These improvements create opportunities for the entire supply chain, including transporters, regardless of the chosen transportation mode,” Garcia stated.

By diversifying the use of different modes, the flow of goods becomes more organized, enabling seamless transportation from end to end. Consequently, the increased cargo volume can be accommodated without bottlenecks and further intensified to meet market demands.

Year to date

Looking at the year-to-date data, it is clear that road transport still dominates the overall transportation landscape. In 2022, from January to May, 80.52% of the 23,961,677 tonnes of cargo relied on road transport, with rail transport accounting for 16.97%, and the remaining 2.51% being liquids transported via pipelines. However, this year, during the same period, out of the 25,220,449 tonnes of cargo imported and exported through the Port of Paranaguá, road transport represented 80%, rail transport 18.31%, and pipelines 1.67%.

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