Brazil needs to invest more in transportation, study says

Brazil is losing ground in global competitiveness due to systemic flaws in its transport matrix. That’s the conclusion of the report “Transport Infrastructure and the Impact on Logistics Costs,” conducted by Infra S.A. in partnership with the National Transport and Logistics Observatory (ONTL) and the Federation of Industries of the State of São Paulo (Fiesp), and published last month.

The study analyzed the main modes — road, rail, waterway, pipeline, and air — focusing on efficiency, network coverage, operational quality, and logistical challenges. It also compared Brazil to other countries with continental dimensions, such as China, the United States, Canada, Japan, and Australia, which manage to balance their transportation modes better.

Highways
The report notes that in 2024, highways accounted for 68.2% of Brazil’s logistics matrix. The implemented federal highway network totals 74.4 thousand kilometers (km), of which 89% are paved. However, this is only part of the total 122.2 thousand km federal network, which includes stretches under construction or in planning. Only 11.4% of the paved roads are dual carriageways, and less than 19.7% are under private concessions.

Compared to other countries, the length of paved highways in Brazil highlights the country’s lack of investment in road infrastructure. China and the United States, for example, despite having a smaller share of road transport in their logistics matrices, have a paved road density about 16 times higher than Brazil’s.

Railways
The railway network, with 30.6 thousand km of track, is mostly operated by private companies (12 of 13 concessions). Of this total, 21.2 thousand km were operational in 2024. Freight is concentrated in minerals (72.3%) and agricultural bulk (14.8%), indicating a lack of modal diversification. The railway mode accounts for 15.5%.

Meanwhile, countries such as Australia and Canada utilize railways to transport large volumes of cargo over long distances. Australia, for example, moves 56% of its cargo by rail. Japan, with its high population density, balances its modes well, with 40% of freight transported by rail.

Waterways and cabotage
The study shows that Brazil uses only 20.1 thousand km of its 63 thousand km of navigable or potentially navigable rivers for cargo transport. In 2024, 126.2 million tonnes were transported on inland waterways, which is well below the potential. China, for instance, moves 36% of its cargo through waterways, optimizing logistics with waterborne transport.

Cabotage utilizes Brazil’s 8,500 km coastline but accounted for only 9.9% of cargo moved last year, mostly oil and derivatives (64%). Though it is a more economical and sustainable alternative to road transport, it faces structural limitations: lack of suitable ports, vessels, and intermodal integration. The national fleet is outdated, with an average age of 19 years, affecting the efficiency and safety of domestic maritime transport.

Still, coastal shipping grew by 6.5% between 2021 and 2024, and on routes like São Paulo–Recife, it can offer freight cost reductions of up to 67% compared to road transport, albeit with 40% more transit time.

Since 2010, Brazil’s infrastructure investment policy has fluctuated. In 2023, only 0.12% of GDP (R$13.74 billion) in public funds was allocated to transport and logistics. To achieve the Sustainable Development Goals (SDGs) by 2030, annual investments of R$474.2 billion — 4.35% of GDP — would be needed, with 53% allocated to new works and 47% to maintenance and modernization.

Problems
The lack of investment has resulted in poorly maintained highways, overloaded ports, and a lack of intermodality, deterring productive investments and increasing logistics costs. Brazil currently ranks 71st out of 141 countries in the Global Competitiveness Index (GCI), ahead of only Russia among BRICS countries, according to the World Bank.

The report states that “the scenario presented highlights challenges and opportunities for Brazil to develop an efficient, competitive, and sustainable transport infrastructure,” but this “requires strategic commitment and coordinated efforts among the government, private sector, and civil society.” The report recommends modernizing and expanding existing infrastructure, as well as adopting advanced technologies. “Transport system planning must be carried out strategically to achieve sustainable efficiency and deliver the necessary and transformative outcomes that proper transport infrastructure can bring to the country.”

Ports Ministry notes progress
The Ministry of Ports and Airports (MPor) stated that it “agrees with the diagnosis” presented in the Infra S.A. report and affirms that there has been progress in waterway concession policies and in the water transport sector.

MPor considers expanding the use of the waterway mode — especially inland navigation and cabotage — essential to improving logistics efficiency, reducing costs, mitigating environmental impacts, and promoting national integration.

When asked whether it would implement public policies based on the study, the ministry listed those already undertaken, such as the creation of the National Secretariat for Waterways and Navigation (SNHN), with increased public funding for structural works and concessions.

The MPor emphasized that “public projects are advancing in dredging, buoyage, and signaling — essential to address dry seasons, particularly in the North Region — and to ensure regular operations throughout the year.”

The ministry also mentioned the 2023 General Concessions Plan (PGO), which prioritizes the concession of the Madeira, Tapajós, Tocantins, and Paraguay rivers, as well as the Barra Norte (Amazon) region and the Mirim Lagoon.

The Paraguai Waterway (southern section) public tender will be launched in the second half of the year, pending review by the Federal Court of Accounts (TCU), and the Madeira and Mirim Lagoon concessions are in the structuring phase, “focused on efficiency, predictability, and integration among transport modes.”

The ministry also noted that the rock removal of Pedral do Lourenço, on the Tocantins River — which already has an installation license — “will enable navigation between Marabá and Baião (PA), unlocking a major logistics corridor for transporting production from the Matopiba region and enabling the future Tocantins Waterway concession, already qualified under the Investment Partnerships Program (PPI).”

The ministry further reported that Law 14.301/2022 (BR do Mar) brought advances to cabotage, including increased authorized vessels, expanded routes, new operators entering the market, and growth in container and bulk cargo movement. The implementation of the law is monitored in coordination with the National Waterway Transportation Agency (Antaq) and the private sector.
MPor said the shipbuilding industry resumed in the past year with R$5.5 billion in contracts for projects aimed at building and modernizing vessels for inland and coastal shipping through the Merchant Marine Fund (FMM), the sector’s main source of financing, “generating jobs, income, technological innovation, and encouraging the use of clean fuels like biodiesel.”

Regarding water transport, the ministry stated that due to its high energy efficiency and low greenhouse gas emissions per tonne-kilometer, the mode plays a central role in the national logistics decarbonization agenda.

“Brazil is committed to the climate goals of the International Maritime Organization (IMO) and to the objectives of the Federal Government’s Climate Plan, which aims to reduce transport sector emissions by 28% by 2035. The waterway sector will play a decisive role in achieving this goal.”

Finally, the ministry stated that the actions underway “reflect a consistent public policy, built through dialogue with the private sector, local governments, and civil society, focused on transforming transport infrastructure.”

Source: A Tribuna

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