AreaBrazil

Commodity GroupOilseeds, oils and meals

CommodityGrains, oilseeds

Date01/07/2021

Policy CategoryOther

Policy InstrumentTransport infrastructure

DescriptionJul-21 to Sep-21: Signed contracts with the private sector regarding upgrading of the rail and road network used to ship grains and oilcrops from Mato Grosso state to the country’s northern and southeastern ports.

NotesBRAZIL – Transport infrastructure/logistics (road concession): In June, the Government awarded a 10-year concession for operating a 1 000 km stretch of highway BR-163 that connects Sinop in Mato Grosso state with northern waterway terminals – a key route for shipping grains grown in the Center–West to ports located along the so-called Northern Arch (Arco norte). The license envisages the collection of tolls and includes the obligation to invest BRL 1.87 billion (USD 356 million) into the highway’s maintenance and various infrastructure improvements. Industry sources estimated that freight costs will increase by about 7 percent, a rise that is not expected to alter the cost competiveness of northbound shipments (compared to the traditional southbound routes serving Brazil’s southeastern and southern ports). Furthermore, in September, Mato Grosso state signed a contract with a logistics company to extend the railway that links inland farmers to southeastern ports.