Oct 31, 2019

Brazil's Northern Arc of Ports to Export 35 Million Tons of Grain

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

For many years, one of the goals of farmers in central Brazil was to save on transportation costs by moving their grain north to export facilities in northern Brazil instead of having to truck their grain south to ports in southeastern Brazil. It now appears that they are getting closer to that goal.

According to data from the Pro-Logistics Movement, the amount of grain exported out of facilities in northern Brazil, called the Northern Arc of ports, has increased 5 times over the past 10 years. The Pro-Logistics Movement reported that in 2009 there were 7.2 million tons of grain exported out of Northern Arc facilities. In 2018, that increased to 32.5 million tons and it is expected to hit 35.0 million tons in 2019. Soybeans and corn are the main grains exported out of the northern ports.

The Northern Arc is considered the area between the Equator and 16 degrees South Latitude, which goes through southern Mato Grosso and just south of Brasilia. The ports in the Northern Arc include: Itacoatiara on the Amazon River in the state of Amazonas, Santarem and Vila do Conde on the Amazon River in the state of Para, Santana on the Amazon River in the state of Amapa, Itaqui on the Atlantic Ocean in the state of Maranhao, Aracaju on the Atlantic Ocean in the state of Sergipe, and the ports of Salvador and Ilheus on the Atlantic Ocean in the state of Bahia.

The states that lie within this Northern Arc zone are responsible for 52% of Brazil's soybean and corn production.to

The Pro-Logistics Movement was created in 2009 as a way to incentivize the agriculture and livestock sectors to focus on the improvement of infrastructure and the movements of cargos in Brazil. They were one of the driving forces behind the completion of Highway BR-163 from northern Mato Grosso to the Amazon River. According to data from the Pro-Logistic Movement, of the 796 kilometers that needed to be paved to complete highway, there are only 10 kilometers left to go.

Some of the members of the Pro-Logistic Movement include: Soybean & Corn Producers Association of Mato Grosso, Mato Grosso Cotton Producers Association, Mato Grosso Ranchers Association, Agriculture and Livestock Federation of Mato Grosso, Mato Grosso Municipality Association, Federation of Commerce, Services and Tourist, Council of Regional Agronomist, Green Action Institute, as well as other associations in northern and northeastern Brazil.