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GLOBALGRAIN SOUTH AMERICA Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September 2014

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Page 1: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

GLOBALGRAIN SOUTH AMERICA

Logistics in Brazil: bottlenecks and

potential for development

Carlos Eduardo Cruz Tavares

São Paulo (SP), September 2014

Page 2: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Export of Soybeans - year 2013 e 2014 (In millions of tons)

Production

Export

Production

Export

Production grew 6% and exports 19%

Page 3: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Fonte: SICARM/CONAB/MAPA

Grain Production Static Storage Capacity

Page 4: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Elaboração: MAPA

Fonte: Conab

Elaboração: MAPA

Major states with Deficiencies in Warehouses

Mato Grosso

16 millions t

Paraná

5,7 millions t

Goiás

3,8 millions t

Bahia

3,4 millions t

Rio Grande Sul

2,1 millions t

Page 5: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Investment in Storage

Cost of Storing 100.000 tons

U$ 17,2 millions

FINANCING

� US$ 11.3 billion for the next five years - Agricultural Plan

� Interest of 3.5% per year

� Payment Term 15 years

Page 6: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Multimodal Corridors of Waterways to the North

Fonte: Agência Nacional de Transportes Aquaviários

Waterway vehicle

Page 7: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Sapezal

Porto

Velho

Itacoatiara

Sapezal – Porto Velho (Rodo): US$ 50 /t

Porto Velho – Itacoatiara(Hydro): US$ 42/t

Total....................................... US$ 92/t

Multimodal Corridor Rio Madeira

Port Itacoatiara/AM

Porto de Santos

Sapezal – Santos (Rodo): US$ 102/t

BR 364

BR 364 & waterway Madeira

Fonte: Conab e AMAGGI

Page 8: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Sorriso – Belém (Rodo): US$ 148/t

Sorriso – Miritituba (Rodo): US$ 64/t

Miritituba – Vila Conde(Hydro): US$ 42/t

Total..................................... US$ 106 t

Multimodal Corridor Tapajós - Amazonas

Fonte: Valor Econômico, Bungue, Ministério dos Transportes e Conab

Port of Vila Conde

Page 9: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Fonte:Câmara Temática de Infraestrutura e Logística do Mapa

Port of

Miritituba/PA

Concession

BR -163 in

Mato Grosso

Page 10: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Fonte: BNDES/SEP

Waterway terminals provided in Miritituba

Law No. 12815 / 13 and Decree 8033: Ports Law

- Terminal Private Use - authorization

- Terminals in ports - lease (greater movement, lower rate)

- Private port with public service: concession

Page 11: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

2013 2014

Corn 4,2 6,8

Soybean 6,9 8,6

∑ 11,1 15,4

Em millionst

Rio Tocantins

Evolution of Production: MATOPIBA

Rio Tocantins

Page 12: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Corridor Tocantins

Fonte: ARCADIS Logos – PHE do Ministério dos Transportes

Indigenous lands, lack of asphalt

Belém - Brasília

Belém - Brasília

Norte - SulFoto Eclusa

Lock to Tucuruí

BR 158

New Lock

Page 13: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

Vertical Concession

Concession Horizontal

Fonte: Valec

- Concessionary: Railroad,

Undercarriage and Operational

Support

- Concessionary: Maintenance,

operation of the road and

allows right of use

- Rail Operator Independent

Model Concession Contracts for Infrastructure and

Railway Construction

Page 14: Logistics in Brazil: bottlenecks and potential for development...Logistics in Brazil: bottlenecks and potential for development Carlos Eduardo Cruz Tavares São Paulo (SP), September2014

São Paulo (SP), September 2014

GLOBALGRAIN SOUTH AMERICA

Thank you

Carlos Eduardo Cruz Tavares

[email protected]

Fone: (61) 3312.6215 e (61) 9226.5601