Brazil more competitive than U.S. to ship soy to China, Rumo CEO says
Reuters
Published Sep 29, 2022 03:01PM ET
By Roberto Samora
SAO PAULO (Reuters) - Brazil, the world's biggest soybeans supplier, has overtaken rival United States as the most competitive shipper of the oilseed to top importer China, the head of rail company Rumo said on Thursday.
Rumo Chief Executive Joao de Abreu noted Brazil's cost per tonne in dollars to ship soy to China was lower than that of the United States in the first half of this year.
"Brazil has just become more competitive than the United States to move agricultural products to their destinations," he said during an event in São Paulo. "I am talking mainly about China, Brazil's top market."
Rumo is a leading rail company and operates Latin America's biggest grain terminal in Rondonopolis, in the south of Mato Grosso state, at the heart of Brazil's farm country.
While reaffirming plans to add more logistics capacity there soon, Abreu said the country cannot stop investing to keep its competitive edge.
"We are going to start (building) a railroad serving the north of Mato Grosso, which accounts for 40% of Brazilian grain exports," he said, adding the state only has 300 kilometers (186 miles) of railroads.
Rumo's project will add another 700 km there, connecting farmers in remote parts of the state.
In recent years, Brazil has made progress improving its national infrastructure, even though most of its cargo is still moved by trucks.
One key development involved shipping more grains through northern ports, an operation that entails the use of barges, with Brazil taking advantage of its abundant Amazonian waterways to ship produce.
That became a competitive alternative compared to relying solely on southern ports like Santos and Paranagua.
U.S.-based Cargill, for example, operates two transshipment hubs in the north, one at Miritituba on the Tapajos river, and another at Porto Velho on the Madeira river.
"Brazil is among the leaders in productivity, but (now) also in logistics," Abreu said. "Overtaking the United States is very important," he said, emphasizing hefty investments in recent years.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.