Brazilian Agribusiness Faces Risk of Logistical Bottleneck in Coming Years, Study Shows

Brazilian agribusiness may experience a logistical blackout in the coming years as the capacity of the country’s bulk terminals shrinks in the face of growing export demand for commodities. This is what a study by Macroinfra, an infrastructure consultancy, suggests.

Another obstacle, according to the survey, is the lack of modal diversity in the transportation of grains produced in the country’s interior, whose transport to the ports is still highly dependent on highways.

According to the survey, more than 91% of Brazil’s port capacity for exporting agricultural bulk goods is currently in use—above the operational safety limit, which the sector estimates to be around 85%. The figures take into account the export demand for grains like soybeans, sugar, wheat, malt, and corn, among others.

The installed capacity recorded at the end of last year was close to 234 million tons, according to the consultancy. By 2028, this amount will no longer be enough to meet the export demand, which is expected to reach 238.9 million tons, according to Macroinfra’s estimate.

The survey was based on data from the National Agency for Waterway Transportation, the Brazilian Institute of Geography and Statistics, and the National Agency for Land Transportation. The consultancy mapped a series of port terminal expansion and construction projects that could, together, add 173.5 million tons of bulk solid shipment capacity per year to Brazil’s ports, according to the survey.

Source:  Folha de S. Paulo

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