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Logistics In Argentina Is The Envy Of Brazil

In addition to naturally fertile lands, the flow of production is done through a logistical infrastructure that allows, for example, that the largest bulk grain carrier in the world – Panamax with a 65,000 ton capacity – loads on Argentine side of the Paraná River and sails directly from the Port of Rosario to China.

But the competitive advantage of Argentine exports is only the end of a saga full of positive steps in the production of soybeans compared to what happens in Brazil and Mato Grosso. While tons of soybeans cover more than 2000 km from Sorriso (MT) to the port of Santos (SP) for dispatch to  China, while in Argentina the distance between the grain producing region to the port is just 500 km.

The region of Rosario, Santa Fe province, accounts for about 80% of national production of soybeans in Argentina, whose 10/11 crop reached 50 million tons. At first glance, the region could be compared to the Brazilian Cerrado due to its importance in the production of grain in the country. However, the similarity ends quickly, since in a radius of 65 km there are 13 soybean crushing plants, making it the largest region overwhelming the world with a capacity of 130,000 tons per day. To get to port, soy travels via highways an average of 300 kilometers to get to the Port of Rosario, where it can go directly to China and Europe.

This production corridor showed exponential growth in the last ten years. From four ports in last decade, there are now 12 to the north of Rosario, the result of a joint effort of public-private sectors.

The cost of one ton of freight to the port is around US$ 20, compared with an average of US$ 120 per ton from Sorriso, MT to the port of Santos (SP), a difference of 500%.

“Many advantages are revealed in favor of Argentina. Local production is booming and that can dictate the market. Without doubt this whole logistical and announced expansion of planted area towards the Chaco region, pose risks to Brazil and show how much we are lagging in relation to the logistical demands, both in Mato Grosso, in Brazil, “says technical director of the Association of Soybean and Corn Growers State (Aprosoja / MT), Luiz Nery Ribas, who saw first hand the port complex in Rosario.

source: Portal do Agronegocio

via Ag News Brazil.