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Fertilizer Distribution Flows and Logistics Costs in Brazil: Changes and Benefits Arising from Investments in Port Terminals

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  • Simoes, Debora da Costa
  • Caixeta-Filho, Jose Vicente
  • Palekar, Udatta S.

Abstract

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.

Suggested Citation

  • Simoes, Debora da Costa & Caixeta-Filho, Jose Vicente & Palekar, Udatta S., 2018. "Fertilizer Distribution Flows and Logistics Costs in Brazil: Changes and Benefits Arising from Investments in Port Terminals," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(3), March.
    • Handle: RePEc:ags:ifaamr:269670
    DOI: 10.22004/ag.econ.269670
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    Cited by:

    1. William Costa & Britaldo Soares-Filho & Rodrigo Nobrega, 2022. "Can the Brazilian National Logistics Plan Induce Port Competitiveness by Reshaping the Port Service Areas?," Sustainability, MDPI, vol. 14(21), pages 1-18, November.
    2. Amanda Cristina Gaban Filippi & Patricia Guarnieri & Cleyzer Adrian da Cunha & Alcido Elenor Wander, 2022. "The Logic of Collective Action for Rural Warehouse Condominiums," Logistics, MDPI, vol. 6(1), pages 1-25, January.
    3. Fernando Pauli de Bastiani & Thiago Guilherme Péra & José Vicente Caixeta-Filho, 2024. "Fertilizer Logistics in Brazil: Application of a Mixed-Integer Programming Mathematical Model for Optimal Mixer Locations," Logistics, MDPI, vol. 8(1), pages 1-26, January.

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