HomePublicationsInsightsRailway versus Highway in the export of soybeans through the port of Santos

Railway versus Highway in the export of soybeans through the port of Santos


Brazil's global relevance in the production and export of soy complex is nationally known. According to data released by Antaq, in 2021 Brazil reached the record of 100 million tons exported. In the Port of Santos it was no different, a record of 30 million tons exported in 2021.

Figure 1: Volume exported by Brazil and the port of Santos (Mi Ton) – Soy complex. Source: Antaq. ILOS analysis.

 

But how did this exported volume reach the terminals at the port of Santos?

Given the Brazilian territorial dynamics, the most representative modes for transporting the soy complex from the producer to the terminals in Santos are: rail and road. In general, the selection of the type of modal will depend on the location of the producer at the port of export and the transportation capacity of the modals. Among the rail and road modals, the rail modal, due to the economy of transport costs, is the most appropriate for the transport of bulk cargo with production farther from the exporting port. However, due to capacity restrictions on the railways, this mode cannot always be used.

According to ANTT data analyzed by ILOS, the volume of soy complex that arrived in Santos by rail has been growing over the years, currently representing 66% of the total volume in 2021.

Figure 2: Exported volume (Mi Ton) and Railroad participation in the total volume arriving at the port of Santos – Soy complex. Source: ANTT, Antaq. ILOS analysis.

 

According to the SPA (Santos Port Authority), investments are being made and planned to unlock the capacity of the railroad in Santos, generating an increase in cargo transported by this modal. Still according to the SPA, it is expected to double the capacity of this modal in the next 5 to 10 years.

Through the data collected and reports released by SPA, we see that the railway modal has a better representation in the movement of soy complex for export in Santos and it is expected that it will continue to be the prioritized modal in the coming years, with the expectation of increasing even more its share compared to road mode.

 

References:

- antaq 

- ANTT

- Santos Port Authority (SPA)

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