Decentralization of Cargo Does Not Affect the Port of Santos – Understand Why

The Port of Santos will not lose cargo despite the Federal Government’s plan, announced this Thursday (7), to decentralize the distribution of export commodities among multiple Brazilian ports to prevent congestion at the Santos docks. Experts consulted by A Tribuna affirm that this risk is minimized due to high demand and Santos’ superior road and rail infrastructure.

According to Ivam Jardim, a port consultant specializing in logistics and transportation, “the decentralization of grain exports should not impact the Port of Santos in the short term, as this cargo will only shift if a cheaper rail logistics alternative is available, and railway investments take time to materialize.”

He also noted that even if some volume is redirected to Arco Norte ports—such as Itaqui (Maranhão), Santarém, and Barcarena (both in Pará)—the growth of agricultural production will ensure that overall cargo movement continues to rise. “This results in a redistribution of cargo among ports rather than a loss for Santos.”

Jardim further emphasized that “Santos is the best-equipped port in the country in terms of railway infrastructure, which strengthens its competitiveness and ensures that, in the immediate future, there will be no significant impacts on grain movement.”

Rodrigo Paiva, director of Graf Infra Consulting and MBA professor of Port Management at Fundação Getúlio Vargas (FGV), believes that changing grain logistics in the short and medium term is highly challenging. “For instance, Arco Norte took a long time to establish itself. The necessary infrastructure must be built before logistics can change in the long run. This does not mean that, in isolated cases, some players won’t seek alternatives if they feel the current terminals are not meeting their needs efficiently.”

According to Conab (National Supply Company), in 2023, the Port of Santos handled 43.6 million tons of grains and fertilizers between January and November, representing 20.3% of Brazil’s total volume exported during those 11 months.

Government Plan

The Federal Government’s export logistics plan includes investments in road and rail networks serving Arco Norte and Arco Sul/Southeast agricultural corridors. On Wednesday (5), Anderson Pomini, president of the Port Authority of Santos (APS), stated that he supports the plan to utilize all national infrastructure for exports. He emphasized that this does not mean Santos will lose cargo. On the contrary, the port will continue its upward trend in cargo movement, especially in agribusiness exports. Given the record harvest forecast for this year, the use of other port infrastructures across the country will be necessary.

Conab estimates that the 2024/2025 harvest will reach 322.3 million tons of grains, a record increase of 8.2% compared to the previous harvest of 297.8 million tons.

Transport Minister Renan Filho announced during the Export Logistics Plan presentation on Wednesday that investment in Arco Norte would increase from R$2 billion to R$2.6 billion, while Arco Sul/Southeast investments would rise from R$1.6 billion to R$1.9 billion. The plan aims to improve 90% of the road network in both regions.

Source: A Tribuna

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