TY - JOUR
T1 - Fertilizer distribution flows and logistic costs in Brazil
T2 - Changes and benefits arising from investments in port terminals
AU - da Costa Simões, Débora
AU - Caixeta-Filho, José Vicente
AU - Palekar, Udatta S.
N1 - Publisher Copyright:
© 2018 Da Costa Simões et al.
PY - 2018
Y1 - 2018
N2 - 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.
AB - 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.
KW - Fertilizer market
KW - Logistic flows
KW - Mathematical programming
KW - Northern-Arc
UR - http://www.scopus.com/inward/record.url?scp=85044312143&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85044312143&partnerID=8YFLogxK
U2 - 10.22434/IFAMR2017.0037
DO - 10.22434/IFAMR2017.0037
M3 - Article
AN - SCOPUS:85044312143
SN - 1096-7508
VL - 21
SP - 407
EP - 422
JO - International Food and Agribusiness Management Review
JF - International Food and Agribusiness Management Review
IS - 3
ER -