This study analyzes the impact of anticipated investments to alter Brazilian port infrastructure on fertilizer flows and fertilizer transportation logistics costs using a linear programming model designed for the task. The most notable among these investments are directed toward accelerating port development in Brazil’s “Northern-Arc”, thereby increasing fertilizer supply to new markets opening throughout the country’s expanding agricultural frontier, particularly in northern Mato Grosso state, while increasing supply to existing markets. Results from model runs show that the anticipated port infrastructure investments should ensure nationwide fertilizer logistics savings of US$ 845 million over the 2017 through 2025 period. Although these estimated benefits are outstanding, the study indicates that further expansion of Brazil’s port system, particularly in the Northern-Arc, presents additional opportunities. Model projections were that in 2025, after all planned infrastructure improvements are operational, port terminals will be near full capacity, which should make planning for future projects a current priority.
RESEARCH ARTICLE
Fertilizer distribution flows and logistic costs in Brazil: changes and benefits arising from investments in port terminals
Débora da Costa Simões Related information
*Corresponding author: deborasimoes@gmail. com
aConsultant, Agroconsult, Rua Cônego Vicente Miguel Marino, 275 #234 C, Barra Funda 01135-020, São Paulo-SP, Brazil.
, José Vicente Caixeta-Filho Related informationaConsultant, Agroconsult, Rua Cônego Vicente Miguel Marino, 275 #234 C, Barra Funda 01135-020, São Paulo-SP, Brazil.
bProfessor, “Luiz de Queiroz” Agricultural College (ESALQ), University of São Paulo (USP), Av. Pádua Dias 11, São Dimas 13418-900, Piracicaba-SP, Brazil.
, Udatta S. Palekar Related informationcProfessor, University of Illinois at Urbana-Champaign, College of Business, 4016 BIF, 515 East Gregory Drive, 61820 Champaign, IL, USA.
International Food and Agribusiness Management Review: 21
(3)- Pages: 407 - 422
Published Online: March 19, 2018
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