Paving of BR-163 reduces freight costs for agricultural products through the northern arc

Road freight costs between Mato Grosso and the port of Miritituba, in Pará, were reduced by up to 11%. This is what the Logistics Bulletin produced by the National Supply Company (Conab) and published on the state-owned company's website shows. According to the study, the drop reflects the end of paving works on BR-163, and represents a stimulus to flow along this corridor. The improvement was reflected in exports from Mato Grosso and allowed a significant percentage increase in 2020 in relation to the traditional ports of Santos/SP and Paranaguá/PR.

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“The growth in the participation of ports in Arco Norte is a reality. These routes can no longer be treated as alternatives, but as a solution for the flow of Brazil's growing agricultural production”, says the superintendent of Operational Logistics at Conab, Thomé Guth.

According to Guth, the lower freight costs, resulting from improvements in infrastructure, directly influence the increase in shipments of agricultural products, mainly corn and soybeans, through the Arco Norte ports. “While cereal and oilseed producers in Mato Grosso observed lower transport prices in September for the ports of Santarém/PA, Porto Velho/RO and Itaqui/MA, in addition to Miritibuna, the route to the port of Santos had an increase of 3%, when compared with the values practiced in the same month last year”.

Current price scenario – With the off-season in Mato Grosso, freight prices began to fall in September in the Central-West state. However, even with the drop presented, the values are at higher levels than in the previous year on certain routes. This controlled cooling is due to the still existing movement for the flow of corn and soybeans in the state.

Click here and learn more about the freight market and removal operations contracted by Conab.

Source: DATA

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