‘Arco Norte’ grain exports exceed those of Santos for the 1st time

The export capacity of the ports in the so-called Arco Norte, ports located north of the 16th parallel, grows year after year, breaking records. For the first time last year, the amount of grain exported through this region’s ports surpassed that of Santos.

“Growth in product handling was already expected in 2022, but it highly surpassed the estimate,” says Elisângela Pereira Lopes, technical advisor to the National Commission for Logistics and Infrastructure of the CNA (Confederation of Agriculture and Livestock of Brazil).

The ports of Arco Norte are important not only for the output of grains but also for the entry of imported fertilizers since there is a continuous growth of farming and production in the region.

These new outputs shorten the distances of the ports in the Southeast and South, reduce costs, give greater productivity to Brazilian products abroad and positively affect producer spending.

Export demand will continue due to production growth at the top of the 16th parallel —which includes the North, Northeast, and part of the Midwest and Southeast regions, generating the need to satisfy the capacity of these new ports.

In Lopes’ assessment, the private sector has accompanied this evolution, but the greatest difficulty comes from public investments, especially with regard to midway infrastructure, such as access to ports.

For technicians from IMEA (Mato-Grossense Institute of Agricultural Economics), investments made in road, waterway, and port infrastructure in recent years have led to a reduction in freight costs when compared to Arco Sul.

Data from IMEA indicate that the costs of grain freight from Sorriso (MT) to Miritituba (PA) dropped by 53% compared to the product sent to Santos (SP). The data refer to the average amount from 2016 to 2022.

Grain production merges quickly in the upper part of the 16th parallel. In 2009, Brazil produced 108 million tons of soybeans and corn, 51.9% of that was above the parallel. Last year, the country’s production for these two products was 238.6 million, and 72.1% came from areas above the parallel, according to CNA data.

Exports from Arco Norte, which accounted for 16.6% of Brazil’s total in 2009, reached 37.1% last year. 52.3 million tons of corn and soybeans were exported in the previous year through the ports above the 16th parallel, exceeding the 46.8 million tons from the port of Santos. In the case of soybeans, soymeal and oil are included.

Source: Folha de São Paulo

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