January, 21, 2020

Port of Paranagua Increasing the Amount of Rail Deliveries

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The goal of the administration of the Port of Paranagua in southern Brazil is to have 50% of their products delivered by rail and 50% delivered by truck and they made progress toward that goal in 2019. The port administration recently announced that the number of rail cars entering the port in 2019 increased while the number of trucks entering the port declined. The main products delivered to the port are soybeans, corn, soybean meal, and sugar.

According to the Administration of the Ports of Paranagua and Antonina, in 2019 the port received 116,514 rail car shipments compared to 111,468 in 2018, which represented an increase of 4.5%. The amount of truck deliveries decreased 3.8% in 2019 to 405,085 compared to 421,270 in 2018. In 2019, rail accounted for 22.3% of the deliveries while trucks accounted for 77.6% of deliveries. In 2018, rail accounted for 20.9% while trucks accounted for 79.0%.

The railroad company Rumo is responsible for the rail deliveries to the Ports of Paranagua and Antonina. The Port of Paranagua is the number one destination for products shipped by Rumo's southern operations which include grains, sugar, liquids, general cargo such as wood products and containers, and imported fertilizers.

Rumo's northern operations involves the transportation of soybeans, corn, and soybean meal from the state of Mato Grosso to the Port of Santos in the state of Sao Paulo. Rumo is currently modernizing their rail line through the state of Sao Paulo and they are planning on extending their rail line northward from the southeast corner of Mato Grosso up to the central part of the state, which is the heart of soybean and corn production in the state.