Brazil’s Southern States Push New Transport Plans to Ease Logistics Bottlenecks, Covering 17% of GDP

Paraná, Rio Grande do Sul, and Santa Catarina — the fourth, fifth, and sixth most significant economies in Brazil — are rethinking their transportation systems to develop projects that will resolve bottlenecks in the production flow. Developing new state-level logistics plans is a strategic move: infrastructure problems in the South hinder the movement of approximately 17% of Brazil’s Gross Domestic Product (GDP).

The work will be carried out by the state-owned company Infra S.A. and runs in parallel with the drafting of the National Logistics Plan 2050 (PNL 2050), coordinated by the Ministry of Transport, which covers the entire country. Infra S.A. is also involved in the PNL 2050. The idea is for the state-owned company to align state-level interests with national discussions aimed at finding more efficient and feasible solutions for transport infrastructure.

Representatives from the private sector and the federal government discussed alternatives to provide the South with an efficient system for moving production in another debate of the “Logistics in Brazil” series, organized by Valor with support from Infra S.A. and the Ministry of Transport. The third edition of the event took place on Tuesday (26) in Curitiba.

During the debates, Marcelo Vinaud Prado, Infra S.A.’s director of market and innovation, said that the southern states currently face logistical bottlenecks due to planning problems, but expressed optimism. “Today, the culture of planning is being taken seriously,” he said. “The bottlenecks exist because in the past, plans were neglected.”

Prado stressed that the logistical challenges in the South are enormous. On the other hand, the region’s economic potential is also immense, especially considering its strategic location for the flow of Brazil’s agricultural production and its relations with Mercosur.

According to Rodrigo Ferreira, General Coordinator of Planning Policy at the Ministry of Transport, the South’s heavy reliance on road transport reduces the efficiency of its transport system and diminishes its competitiveness.

Ferreira said the ongoing PNL 2050 should propose alternatives to increase the use of railways in the region. The Ministry of Transport is evaluating measures to optimize the use of the Malha Sul railway, currently operated by Rumo Logística, which has approximately 60% of its tracks deactivated, according to state governments. Other projects under study include the construction of Nova Ferroeste, which will link the Port of Paranaguá (PR) to Mato Grosso do Sul, and the modernization of the southern trunk of the Norte-Sul railway, spanning between Paraná and Rio Grande do Sul.

Infrastructure problems in the South hinder 17% of Brazil’s GDP

Rumo reported that it maintains constant dialogue with the Ministry of Transport to address issues related to the current configuration of Malha Sul.

Prado noted that choosing the most suitable alternative will also increase the attractiveness of private resources for projects. “We want private investment to evolve, reaching R$5 for every R$1 invested by the public sector in ten years,” he said.

João Arthur Mohr, president of the Federation of Industries of the State of Paraná (Fiep), stressed that government planning must be implemented. He recalled that debates on transport in Paraná 15 years ago already highlighted the importance of railways. However, the state and the entire South have not received consistent investment in this mode for 40 years. “Either we invest in infrastructure or we will have to tell southern industries to stop growing,” Mohr warned.

Sérgio Malucelli, president of the Federation of Road Cargo Transport Companies of Paraná (Fetranspar), stated that 65% of cargo transported in Paraná is moved by road, and 75% of the cargo destined for the Port of Paranaguá arrives by truck. He stressed that the state’s roads are at their limit, and those in Santa Catarina and Rio Grande do Sul are in even worse condition, especially after the 2024 floods.

Rafael Stein, institutional manager at the Paraná Container Terminal (TCP), noted that despite difficulties in accessing the port, throughput at the terminal has reached record levels. In 2024, more than 1.5 million TEUs passed through TCP, representing a 25% increase over the previous annual record set in 2023.

Source: Valor Econômico

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