The year 2017 promises a historic record for the movement of soy and corn in the ports of Arco Norte. According to Valor Econômico newspaper this week, an unprecedented study by the National Supply Company (Conab) calculates that approximately 24% of the almost 100 million tons of soy and corn expected to be exported in 2017 will leave Brazil through one of the ports in Arco Norte (Santarém (PA), Barcarena (PA) ), Santana (AP), Itacoatiara (RO) or São Luis (MA)).
If this number is confirmed, it will be driven mainly by the record harvest expected by Conab for 2016/2017, as the region still suffers from limitations in the infrastructure that connects the production poles to the ports of Arco Norte. Just as an example, although traders are investing in terminals and transfer stations, the BR-163 continues to have problems in Pará, from the border with Mato Grosso.
Em previous post, we had already talked about the growth in soy movement in the ports of Arco Norte, and the scenario does not change much when corn is added to the analysis. In 2016, Arco Norte ports exported 18% of Brazilian soybeans and corn, second only to Santos as the largest exporter of these grains in Brazil (35%).
Figure 1 - Main exporting regions of soy and corn x Main ports (volume in millions of tons)
Source: ILOS
As in the isolated case of soy, the growth in soy and corn movement in Arco Norte does not steal cargo from Santos (SP), as many might imagine. In the analysis of the last six years, Santos saw the volume of these grains grow in absolute numbers, consolidating its share around 35% and remaining as the main outlet for grains in Mato Grosso and Goiás.
On the other hand, the simulations already carried out show that the ports of Arco Norte become financially attractive for the grains produced in the areas above the 16th parallel. This includes important production poles, such as Lucas do Rio Verde (MT) and Sorriso (MT), in addition to the Matopiba region (Maranhão, Tocantins, Piauí and Bahia). Grains from Rio Grande do Sul leave through the port of Rio Grande (RS), while Paranaguá (PR) mainly receives bulk from Paraná and Mato Grosso do Sul, with Vitória (ES) being an option for Santos in relation to grains. from Mato Grosso and Goiás.
In other words, the ports of Arco Norte arrived to complement the transport infrastructure for the export of grains from Brazil and not replace one port or another. Investments in infrastructure for the North region continue to be very important for Brazil, but we cannot forget that land accesses are still among the main problems of the country's major ports, especially Santos.
References:
<http://www.valor.com.br/agro/4862084/aumenta-exportacao-de-soja-e-milho-pelos-portos-do-arco-norte>
Alexandre Lobo
https://ilos.com.brGraduated in Civil Engineering from the Federal University of Rio de Janeiro (UFRJ) and in Social Communication from Faculdades Integradas Hélio Alonso (FACHA). Expertise in several projects with emphasis on market analysis for companies such as Unilever, Intertank, Invepar, Aqces, Inter-American Development Bank and World Bank.
