Brazil: Chaos on the BR-277 could generate a loss of BRL 600 million in the flow of soybeans from Paraná

Published Mar 18, 2023

Tridge summary

The article highlights the significant financial impact on Paraná's agribusiness due to the deteriorating condition of BR-277, a crucial road for transporting cargo to the Port of Paranaguá. If the road were to completely shut down, the additional freight costs for soy logistics could exceed R$ 600 million, as calculated by the Technical and Economic Department of the Faep/Senar-PR System. This scenario would force producers to reroute their cargo through other ports, leading to substantial losses for the state, especially considering Paraná's leading role in poultry exports and being the third-largest pork exporter in Brazil. The article also mentions the current discount applied for exporting oilseeds through the Port of Paraná, which results in an additional loss of R$ 241.31 million for the 15 million tons of soy that are expected to be exported.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The chaos on Paraná's roads, especially on the Curitiba-Paranaguá connection via BR-277, has the potential to cause billionaire damage to state agribusiness. Considering only soy logistics (without involving other production chains), the extra expense if the shipment has to be made through the Port of Santos (SP) can exceed R$ 600 million, according to a calculation by the Technical and Economic Department (DTE) of the Faep/Senar-PR System. Photo: Disclosure/Faep In recent months, on several occasions, BR-277 has been blocked in whole or in part due to falling barriers, cracks in the road and risk of landslides. Based on this, the projection takes into account the scenario of total interruption of the BR-277, the only road that carries heavy cargo traffic to the Port of Paranaguá. In this case, production would have to leave through another port complex. Freight by seven-axle truck, with capacity for 57 tons, costs R$ 4.86 per bag on the Cascavel-Paranaguá route, which totals 600 ...

Source: Opresenterural