PROBLEMS ON BR-277 HIGHWAY IN PARANÁ MIGHT GENERATE GREAT LOSS IN SOYABEAN OUTPUT

Problems with BR-277 in Paraná, especially on Curitiba connection, has potential to cause billionaire damages to the state of Paraná agribusiness. Considering only soya logistics, the extra expense to change shipment from Paraná to Santos, São Paulo can exceed R$ 600 million. In recent months, on many occasions, BR-277 has been partial or total blocked due to structure problem such as landslides. Based on this information, the projection takes into consideration a scenario of total interruption of BR-277, the only road that carries heavy cargo traffic to the Port of Paranaguá. In this case, the production would have to leave through another port complex. According to the Department of Rural Economy (Deral), the soyabean harvest projection in 2022/23 is 21 million tons. Based on historical averages, the state should export 15.7 million tons – 12.6 million through the roads and 3.1 million through the rails. If all this volume stopped leaving through Paranaguá, due to a total interdiction of the BR-277, the loss would be in the order of R$ 602.7 million only due to the cost of extra freight to Santos.

Source: Agrolink