Sustainable growth with the support of all modes

As said a few posts ago, for Brazil to grow in a structured way, it will be necessary to develop alternative transport modes to avoid a possible collapse of the transport system or a significant increase in logistical costs. If the expectation of economic growth of around 4,5% per year is confirmed, it is believed that more than 2 trillion RTK will be handled in the country. It would be a growth of almost 20% in relation to the cargo transported in 2018, which would only be sustainable with the increase in the share of typical modes for transporting large volumes over long distances, such as rail, waterway, cabotage and pipeline.

Of these four modes, which would currently require less investment by the government would be cabotage. I explain. Of the four, cabotage is the only one that, in order to expand its cargo transport capacity, would only need to expand its fleet, with little or no investment in infrastructure. After all, it already shares ports with long-haul navigation, the sea has no barriers like some rivers, it doesn't even need to be paved like on the highway and it doesn't even need new structures for the creation of new routes like in railroads and pipelines. That is, the investments would practically be borne only by the Brazilian Shipping Companies (EBNs).

Evidently, Brazilian ports need to better adapt their integration with road and rail modes, but the basic structure already exists and the expansion of capacity would only depend on the increase in the fleet. On the part of the EBNs, the desire to expand the fleet exists, but these, currently, run into the high operating costs in Brazil, which end up affecting their competitiveness with the road modal. The role of the government would be to guarantee a more competitive environment for EBNs, and some measures are already on paper, but have never been fully implemented.

After years of crisis, naturally, the entry of a new government renews expectations for a better future for the economy. However, it is essential to prevent the mistakes of the past from being committed again. The use of transport modes that are inappropriate for the cargo movement profile generates unproductivity in Brazil, with an increase in freight costs and unnecessary overuse of highways. The country's growth involves the growth of modes with a natural vocation for transporting large volumes of cargo over long distances. And cabotage can be a quick alternative while investing in new railroads, waterways and pipelines.