Drought in Tietê-Paraná should affect grain flow from Goiás

Jun, 10, 2021 Posted by Ruth Hollard

Week 202125

The worst drought in the Tietê-Paraná waterway basin in the last 40 years should strongly affect the flow of grain from the São Simão region, in Goiás.

The barges carry 2.5 million tons of grain to the port of Pederneiras, in São Paulo. The volume represents less than 1% of national grain production, estimated by CONAB (the national supply company) at 271.7 million tons in 2020/21. But for producers in the region, the volume is significant.
As climate maps were already indicating that the winter of 2021 would be dry weather, the search for alternative modes was anticipated. “Of course, the loss of a transport alternative is bad, but this time, what happened in 2016 won’t happen again. Back then, shippers and waterway service providers were taken by surprise”, says Thiago Péra, coordinator of the Research and Extension in Agroindustrial Logistics “Luiz de Queiroz” College of Agriculture (ESALQ/USP). A study by EsalqLog showed that in 2016, the economic impact for shippers reached R$ 80 million. “They had to look for road transport in a hurry, and the freight skyrocketed,” says Péra.
This year, the group’s freight value tracking system has not yet detected an increase. The main grain to be transported by this route at the moment is off-season corn, which is still in the field.
Source: Valor Econômico
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