Brazil is a country with a strong vocation for the production and supply of important inputs for the world industry. Iron ore, soy and corn, for example, are among important commodities handled in our ports, and observing how their volumes have evolved over the last decade is important to understand the existing obstacles and possible solutions for our port logistics.
In 2019, Brazil transported 689 million tons of solid bulk in Brazilian ports, 86% referring to Long Haul navigation (import and export), 11% inland routes and 3% cabotage. These percentages are very similar to those verified in 2010, however with a total volume having shown growth, since in 2010 the total transported amounted to 526 million tons.
Figure 1 – Soy, corn and fertilizers, related to agribusiness, showed the highest growth in the last decade in transport in Brazilian ports. Source: Pixabay – Charles Ricardo
Iron ore continued to be the main product transported by Brazilian ports, representing 52% of the total volume of dry bulk. However, this representativeness decreased over the decade, since in 2010 the volume of iron ore represented 60% of the volume. The other five most important products in terms of volume are soy, corn, bauxite and fertilizers. Over ten years, iron ore showed a CAGR (compound annual growth rate) of 3,1%, while bauxite showed a timid growth of 0,8%. The biggest increases were in corn (16,7%), soy (14%) and fertilizers/fertilizers (11,1%), reflecting the strong advance of Brazilian agribusiness, with corn and soy for export and fertilizers/fertilizers for imports. On the other hand, sugar, which in 2010 was the fourth largest solid bulk transported in volume, had a decrease in the volume transported in the last ten years, with a CAGR of -2,6%. Today it is the seventh in volume, behind the products already mentioned and mineral coal.
Figure 2 – Volumes Transported in Brazilian Ports in the last decade. Source: Antak
When considering only the long haul, Brazil transported 591 million tons in 2019, with a CAGR of 4,0% over the last decade. Considering the volume of 2019, 59% refers to iron ore, totally exported. The main outlets for Brazilian iron ore are the ports of São Luís, where EFC ships the ore produced by Vale in Carajás, Vitória, the end point for ore outflow on the Vitória Minas Railroad, and Itaguaí in Rio de Janeiro. January. The main destinations for the Brazilian commodity are China, which absorbs 64% of Brazilian ore, Malaysia with 8%, followed by the Netherlands and Japan, both with 4%.
Soy is the second most important product in Brazilian exports, with 73 million tons of the grain transported abroad in 2020. achieved over the last decade, currently transporting 27% of its volume in Brazil. China is again the main destination for the Brazilian product, buying two thirds of the total volume.
The country's ports and port authorities are planning concessions and privatizations by the federal government, which will take place throughout 2020 and 2021. The port infrastructure is essential to guarantee the flow of our production, so what is expected is that, with these private investment projects, our products access national and international markets in a more efficient and competitive way.
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Henry Alvarenga
He has been working in consultancy for 7 years, with experience in more than 20 Demand Planning and S&OP projects, Logistics Network Design, Logistics Master Plan, Inventory Policies, Operations Strategy and Market Intelligence
