Trucks dominate grain transport in Brazil

Soybean arrivals by rail increased by 325% between 2010 and 2023 at the Santos pier, according to the survey (Sílvio Luiz/AT)

Road transport remains the main method for moving the grain harvest in Brazil, accounting for more than 65% of the total transported, despite a decline between 2010 and 2023. This is according to a study conducted by the Group of Research and Extension in Agroindustrial Logistics (Esalq-LOG) of the University of São Paulo (USP) in partnership with the United States Department of Agriculture (USDA).

According to the research, the share of roads in corn transport decreased from 84% to 76% during the period analyzed. For soybeans, the reduction was from 75% to 69%. On the other hand, there was an increase in the use of railways and waterways, reflecting a gradual diversification of the country's grain transport matrix.

The study reveals that rail transport of corn grew up from 15% to 17%, while river transport jumped from 1% to 8%. In the case of soybeans, railways increased their share from 20% to 22%, and waterways from 5% to 9%.

According to the research, these changes in modal shares reflect not only investments in infrastructure but also shifts in the dynamics of grain production and exportation in Brazil.

Despite the progress, the country still faces significant challenges in logistical infrastructure. The research indicates that the average distance traveled by trucks in grain transport is 865 km, with most domestic movements covering approximately 625 km. In the main ports, changes in the transport matrix vary.

In Santos, the share of railways in soybean exports increased from 52% to 57%. In Rio Grande (RS), truck usage grew up from 57% to 90%, and in São Luís (MA), from 10% to 48%.

According to the study, the impact of logistics costs remains significant. Road transport can account for between 15% and 40% of the final price of the product delivered to the ports.

The study Brazil’s Modal Shares for Corn and Soybeans: Updated Analysis from 2010-23 based its methodology on data from official sources, including the National Land Transport Agency (ANTT), National Waterway Transport Agency (Antaq), National Supply Company (Conab), and the Ministry of Finance.

Santos The Port of Santos, the main export route for soybeans and corn from the agribusiness of the Midwest and interior of São Paulo, recorded progressive increases in shipments of these products between 2010 and 2023, but the share of road and rail transport evolved differently. While most soybeans arrive in Santos by train, corn is mainly brought in by truck. The share of soybeans transported by road fell from 47.6% to 42.6% during the period, while rail transport increased from 52.4% to 57.4%. In terms of quantity, soybean transport increased from 3.9 million tons (2010) to 13 million tons (2023), a 225% increase. By rail, soybean transport grew from 4.3 million tons to 17.5 million tons, a 325% increase compared to the first year of the historical series.

The share of corn transported by road increased from 6.6% in 2010 to 33.6% in 2023. In rail transport, the share dropped from 93.4% (2010) to 66.4% (2023). In terms of quantity, corn transport grew up from 366,000 tons (2010) to 7.2 million tons (2023) by truck, an increase of over 1,800%. By train, transport grew from 5.2 million tons (2010) to 14.2 million tons (2023), a 180% increase.