EsalqLog study: Railroad expansion would increase agribusiness

Railroads can play an important role in raising even higher the competitiveness of Brazilian agribusiness and help the country reduce its greenhouse gas emissions. But the slow extension of this modal in the country continues to thwart the railway’s attempt to overcome asphalt’s prominence in agribusiness cargo transport.

In Brazil for every kilometer of railroad, there are 6.9 kilometers of paved roads and 0.7 kilometers of economically navigable waterways. Considering that only a third of the railway network is in operation, the proportion gets even worse: for every kilometer of the railway in operation, there are 21.5 kilometers of highways and 2.24 kilometers of waterways.

The numbers are part of a study carried out by researchers Thiago Péra and José Vicente Caixeta Filho, from the Extension and Research Group in Agroindustrial Logistics at the “Luiz de Queiroz” School of Agriculture (EsalqLog). They point out that in addition to the network being small, the index of concentration in a few companies is high.

Since 2010, the four largest railway operators that work with agro have accounted for more than 85% of the sector’s cargo movements. “This is a point that deserves attention”, says Péra, “because it can mean a monopoly [on some routes] and high fares”. The most transported products are sugar, limestone, pulp, ethanol, and soy meal.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/10/19/expansao-de-ferrovias-ampliaria-a-forca-do-agro-confirma-estudo.ghtml

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