A Multi-Client Study Proposal
from the Informa Economics Group
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES;
SOLUTION OR PROBLEM
August 2012
Background & Study Objectives
Over the past decade, Brazil has doubled the size of its exports of dry bulk commodities
including principally soybeans, soybean meal and corn. Over the next twelve months, the
export capabilities of Brazil will be tested as never before as crop production declines this
year and last in North and South America will leave global importers more dependent than
ever on exports from Brazil. In the short term, a critical question is how much product can
Brazil export during April-August of 2013? Can Brazil sustain a high enough level of
exports to satisfy global demand for basic commodities? This raises an even more critical
long-term question as to whether Brazil will be able to expand its port and inland
infrastructure such that both export and a large and growing domestic demand for basic
foodstuffs can be met. The short and long term questions about the logistics capability of
Brazil are the main focus of the research described in this prospectus.
Looking at the World Economic Forum data for 2010/2011, it is apparent that Brazil – the
sixth largest economy in the world – should have a more adequate infrastructure and logistics
system and in fact will need to significantly improve this sector of its economy if increases in
exports and domestic consumption are expected to continue.
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Understanding the difficulties that Brazil is facing regarding its logistical challenges and
issues, this study has been designed to both quantify and characterize the main activities and
chokepoints involved in the export of dry bulk commodities: transport (road, rail and river);
warehousing and ports.
Transport
Transport improvement is one of the most critical factors required to boost Brazil´s global
competitiveness in commodity exports. While Brazil is of continental size, the transport
network is relatively limited and focused on expensive road transport. While the USA
transports some 49% of soybeans to initial market position via roads, Brazilian roads account
for 53% of total tonnage transported. This difference is even more pronounced on soybean
movements to ports with over 90% of US soybeans moving to port via rail or barge and less
than half of Brazilian soybeans moving to ports via these modes. More importantly, the
Brazilian roads are generally in poor condition thus impacting time to ports and processing
units as well as product losses. Regarding rail, the country only has some 30 thousand
kilometers of rail track, most of which is located in the southern portion of the country.
Compared to the USA, Brazil has one seventh the rail system. And finally, regarding
waterways – accounting for some 28 thousand kilometers of navigable rivers – 13% of total
cargo transported – only one half are currently being exploited for commercial transportation.
This situation is compounded by the fact that a good portion of the new grain and oilseed
production is migrating to the Central West region of the country, increasing transport
mileage to ports from a region with even greater transport problems than the rest of the
country.
Soybean Modal Shares in Brazil and United States
100%
7
11
90%
20
24
80%
Soybean Modal Shares
33
36
70%
20
27
60%
Waterways
50%
Railways
Highways
40%
30%
60
60
53
49
20%
10%
0%
2005
2010
2005
Brazil
Source: ANEC (Brazil) and USDA (United States)
2010
United States
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Warehousing/Storage
Quite different from other countries, on-farm storage facilities are minimal in Brazil. In the
USA, more than 55% of total grain and soybeans storage is located on farms, while in Brazil;
only 16% of the capacity is located on farms. As such, farmers rely to a great extent on grain
traders and intermediaries to store their crop. Aside from the fact that there is a deficiency in
grain/oilseed storage capacity, this deficiency is acute in the Central West region of the
country where the production of grains and oilseeds is increasing. However, since 2003 grain
and soybean storage in Brazil has increased from 90 million metric tons to more than 140
million in 2012 to keep pace with increased soybean and corn production.
Brazil Grain Storage Capacity by Region
160
140
Million Metric Tons
120
100
North
Northeast
80
Center-West
Southeast
South
60
Crop Production
40
20
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0
Source: CONAB
Ports
Having one of the longest coastlines in the world, Brazil´s port infrastructure also is
inadequate when considering the nation’s volume (current and potential) of agricultural
production and exports. With a total of some 50 inland and seaports, nearly all are owned by
federal, state and/or city governments. The port terminals and facilities, however, are mainly
private-owned and, about 90% of export cargo is moved through privately-owned port
terminals. Major problems detected in port services are red tape, poor access to port facilities
(mainly roads and rail) and strong port unions.
Port problems include draft issues, limited load/unload capacity, space for expansion and
environmental issues which require time to resolve (red tape).
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Government Role
The federal government has been aware of the inadequacies of the logistics systems in Brazil
for quite some time. Looking back at the last 10-20 years, it can be said that little has been
done to rectify this situation. Brazil seems to be good at planning: however, implementation
is a pitfall, primarily due to politics, red tape and the growing topic of environmental issues.
The federal government has developed a long-term national transport and logistics program –
National Plan for Transportation & Logistics (NPTL) – out to 2023 which has earmarked
US$146 billion to transport/logistics issues. The NPTL will give greater focus to rail and
waterways, yet tangible results have been few to this moment. Another federal government
program is PAC (Accelerate Growth Program) which earmarked significant funds for
logistics in the 2007-2010 period. Results, to date are similar to NPTL; minimal!
In sum, there is considerable work needed to improve Brazil´s infrastructure and logistics
systems. It is hoped that this study will aid the reader in identifying possible investment
opportunities in the activities described within the scope of this study.
Study Scope
This study is focused on the main activities involved in getting the farm-gate crop to the port
and/or the crushing/processing units. The evaluation and assessment of those activities in this
study include:
 Inland transport from farm gate to market position, either crushing/processing unit or
to port;
 Intermediary transport from off-farm warehousing unit to port or processing unit;
 Off-farm warehousing activities, and
 Port and terminal activities.
Those agricultural products to be included in the scope of the effort include:
 Soybeans and meal;
 Corn;
 Cotton;
 Sugar; and
 Coffee.
While rice production is important to Brazil, it has relatively small export volumes and, as
such will not be assessed. All perishable goods, meats and liquid products are not in the
scope of this study. Some production and export data on these crops may be included in the
final report to give the reader a complete picture of dry bulk logistics needs.
Study Methodology
This study is based on a methodology that starts with extensive desk research. One of the
prime sources of data will be Informa Economics FNP´s exclusive database. Secondary
sources will include a vast list of institutions, government agencies and other infrastructure
entities and private industry sources which will enable Informa Economics FNP to build up a
solid base of quantitative and qualitative information on infrastructure costs, deficiencies and
opportunities in Brazil. This secondary sourcing will not be limited to Brazilian sources,
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
understanding that the report will benchmark transport, warehousing and port efficiency with
that of the USA. Another important point is that Brazilian port facilities may be influenced by
external factors such as the expansion of the Panama Canal.
And lastly, this effort will require interviews with key players in the dry bulk, commodity
crops sector. The opinions of such interviews will be a base-line for some of the premises for
future trends regarding infrastructure and logistics needs and identifying business
opportunities.
Preliminary Study Outline
Knowing that each client has specific needs, the critical issues to derive a full understanding
of the logistics situation in Brazil are summarized in the proposed outline for this study.
Section 1 – Introduction
 Basic Data on Brazil Economy
 Basic Data on Brazil´s Agricultural Sector/Production System
 Global Benchmarking - Logistics
 Value Chain for Major Crops
 Maps of Critical Infrastructure and Agricultural Factors
Section 2 – Transportation
 Introduction
 Transport Modes for Bulk Grains/Oilseeds
o Road
 Introduction
 Maps
 Road Conditions
 Mileage Tables/Maps
 Types of Trucks
o Rail
 Introduction
 Maps
 Mileage Tables/Maps
 Types of Rail Cars
o Waterway
 Introduction
 Maps
 Mileage Tables/Maps
 Types of Barges
o Intermodal
 Characterization of Transport Companies
o Road
o Rail
o Waterway
 Transport Costs for Bulk Grains/Oilseeds
o Road
o Rail
o Waterway
o Intermodal
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES

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Farm Gate to Commercial Warehouse
Commercial Warehouse to Port or Crushing Unit
Types of Transport Companies
Contractual Agreements
Losses in Transit & Timing Issues
Trends
Government Programs
Section 3 – Crop Warehousing
 Introduction
 On vs. Off-Farm Storage
 Related Warehousing Activities & Costs
 Locational Analysis of Warehousing Facilities
 Types of Warehousing Companies
o Multinationals
o Local/Regional
o Coops
o Others
 Warehousing Losses
 Trends
 Government Programs
Section 4 – Ports
 Introduction
 Port Infrastructure in Brazil
 Port & Terminal Norms
 Major & Potential Ports for High-Volume Grains
o By Port
 Incoming/Outgoing Volumes
 Destinations
 Seasonality
 Routing Options/Frequency
 Basic Port Characteristics
o Private vs. Public Ports/Terminals
 Impact of Panama Canal Expansion
o Which ports will benefit?
o Impact of Brazil´s competitive situation
 Trends
 Programs
o Where will government programs have an impact?
Section 5 – Government Role in Infrastructure & Logistics
 Transport Systems
 Warehousing
 Ports
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Section 6 – Impact/Implications of Infrastructure on Agricultural Sector
 Assessment of infrastructure developments on agriculture
 Economic impacts of improvements to infrastructure
Section 7 – Crop Production Trends
 Soybeans
 Corn
 Cotton
 Coffee
 Sugar
 Other Crops
Section 8 – Final Considerations and Conclusions
A final consideration will be the impact that the near term export requirements will have on
the transport and infrastructure system, and what the will portend for future development. In
this regard, the study team will assess and quantify the maximum export potential (on a
monthly and yearly basis) for Brazil near term and over the next ten years. The ten year
outlook will represent a “base case” forecast given current and the most likely scenario for
future investment into the system. The study team also will identify critical bottlenecks that
will require financing and investment. The objective for the clients of this study is to identify
“problems” in the system and turn them into “opportunities” or at the very least allow
impacted companies to use the information to mitigate “threats” to their operations.
Note that some of the issues listed above and topics may be adjusted or modified based on
client needs and input.
Who Should Participate in this Study?
This study is designed to bring value to every segment and participant in the agro-industrial
food, feed and fiber value chains in the Americas as well as globally. The evolution of the
logistics structure in Brazil will impact the following players:
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Grain and oilseed traders;
Food processors;
International infrastructure construction contractors;
Heavy duty equipment manufacturers;
Financial institutions and investment entities;
Maritime companies:
Transportation and logistics companies which provide services to farmers and other
players in the value chain;
Service providers for certification, traceability and warehousing;
Agriculture consultants;
Port authorities in other countries: and
Government-related entities.
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Study Deliverables
Clients will receive a comprehensive report in Power Point format. Note that all qualitative
aspects of the effort will be textually presented, yet attempting to avoid – as much as possible
– “reader fatigue”. The fully documented report will include all relevant background
statistics, analyses, maps and evaluations, and supporting detail developed during the study.
To better exemplify the final results of this study, below are a few of the main questions to be
answered:
 What are the prevailing transport warehousing and port costs/fees for main commodities?
Have they been declining over time?
 What are prospects of transport costs falling in near future? If so, by how much?
 What are the factors which will be driving transport, warehousing and port costs?
 Benchmark inland transport costs with USA.
 Benchmark warehousing costs with USA.
 Benchmark port/terminal costs with USA.
 How does Brazil compare to other major commodity players with regard to logistics
issues?
 On a global basis, where are the barriers and opportunities in Brazil for logistics?
 Considering the three main factors – transport costs, warehousing and port facilities –
what are the main barriers to reduce logistics costs for commodities?
 Considering transport, warehousing and port activities, which are considered major
barriers in development and underlying reasons for this?
 Government support and incentives are critical for long-term infrastructure projects. What
is the federal government´s position regarding such investments made either by locals and
foreign investors? What is the federal government´s track record in execution of
infrastructure/logistics programs?
 What are the business opportunities in the logistics´ value chains for dry bulk
commodities?
 Will the expansion of the Panama Canal impact Brazilian logistics?
Project Schedule
Pre-Study Conference Call: A call-in meeting of participating clients and Informa study
staff will be held to review the detailed plans for the study and to identify particular areas and
issues that clients want to receive special attention. This conference call will address the
major study topics and enable specific client comments and interests relating to each to be
noted.
Post Study Seminar: Informa Economics staff will present the results of the effort at a
concluding, day-long client seminar, with ample time for the group to participate in
discussing the implications of the study findings. The seminar location can either be in Brazil
or the USA and will be decided by the clients.
Final Report Presentation at Clients´ Offices: Informa Economics staff will be available to
present the final study results on an individual client basis at no additional cost except for
out-of-pocket travel expenses. These meetings will be designed to meet the client’s specific
needs and provide a unique opportunity to stimulate discussion within the client’s
organization.
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Preliminary Project Schedule: A tentative schedule is given below and will be adjusted
after the signups have been completed:
 September - Pre-Study Conference and Kick-Off
 January - Study completed and final report sent to clients
 January - Client seminar to review findings
 To be defined - Individual presentations at client offices
Study Fees
The study fees are US$13, 500 for Informa Economics clients. Non-client fees are
US$16,500. These fees will be billed 50 percent upon the study’s initiation and 50 percent
upon delivery of the report.
The above fees do not include travel costs for the client to a possible conference and/or seminar.
Study Team
Informa Economics, Inc. is a world leader in broad-based domestic and international
agricultural and commodity/product market research, analysis, evaluation and consulting.
The company was founded in 1977 and in 2003, was acquired by Informa plc. (“Informa”).
Informa Economics, Inc. serves hundreds of firms, institutions and trade organizations
worldwide from headquarters in Memphis, Tennessee.
Informa Economics FNP, founded in 1989, is a subsidiary of the Informa Economics group.
Informa Economics FNP is a leading provider of agricultural, livestock and agribusiness
information on the Brazilian market. Informa Economics FNP has over one thousand clients,
both based in Brazil and South America. Informa Economics FNP´s services include:
 Publications on the agricultural and livestock sector in Brazil;
 Newsletters on the meat sector and biofuels;
 Ad hoc consulting services; and
 Market research services in Brazil.
The project study team will consist of a unique combination of specialists from Informa
Economics FNP in Brazil and the USA. The study team will be led by Richard John
Brostowicz, located in Brazil, and Ken A. Eriksen at the Memphis headquarters.
Richard J. Brostowicz, Business Intelligence and International Consulting Lead, has been
with Informa Economics FNP since 2003. In this period with the company, Richard has
supervised and worked directly on over 60 projects in consulting and market research as well
as other risk analysis, feasibility and site location efforts. He began his career at Informa
Economics FNP in the Business Intelligence area with focus on market research initiatives
with international clients. Prior to Informa Economics FNP, Richard worked some 24 years
at Monsanto’s Brazilian operation located in São Paulo. In this company, he worked in
numerous departments, including Planning, New Business Development, and Manufacturing
and ended his career at Monsanto, establishing the Business Intelligence Department. Some
of the highlights of his career at Monsanto include the successful approval of NutraSweet in
Brazil, approval of Lactotropin (Bovine Somatotropin) for commercial use in Brazil and the
reorganization and implementation of a hybrid distribution system for agricultural chemicals
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
and seeds. Richard also worked some eight years as a financial director for a venture capital
firm in Brazil and a few years in consumer market research. He received his bachelor’s
degree in marketing from the University of Wisconsin and later completed a post-graduate
program in economics with OAS – Organization of American States.
Ken A. Eriksen, Senior Vice President. Since 2011, Mr. Eriksen has been the leader of
Informa Economics' Transportation, Industrials and Energy Services Group. In this capacity,
he directs the group's efforts in client service, research, risk management, consulting and
events. Since joining Informa in 2001, Mr. Eriksen has led Informa's transportation services
and co-led Informa's project consulting practice. Mr. Eriksen regularly speaks on
transportation and infrastructure issues and developments, and is an expert witness in the area
of transportation, logistics and supply-chain matters. Prior to joining the company, Mr.
Eriksen worked for the USDA’s National Agricultural Statistics Service as an agricultural
statistician. In that capacity, he conducted national surveys and set national estimates in
agriculture. Also while at USDA, he worked for the Agricultural Marketing Service on its
transportation and marketing program, conducting research and analysis on domestic and
international transportation issues. He also worked as an international longshoreman for the
Pacific Maritime Association in Tacoma, Washington. He received his bachelor’s and
master’s degrees in agribusiness and agricultural economics from Washington State
University. While working on his master’s degree there, Mr. Eriksen was a transportation
economist for the Department of Agricultural Economics, performing economic
transportation data analysis and modeling.
José Vicente Ferraz, senior consultant, is one of the founders of Informa Economics FNP
and has been with the company since its inception in 1990. He is a graduate from the
University of São Paulo’s agronomic division (ESALQ) and received his MBA from
Fundação Getúlio Vargas. Among some of his major accomplishments at Informa
Economics FNP, Vicente was responsible for the launch of the company’s key yearbooks –
AgriAnual and AnualPec. He has coordinated, worked on or has been involved in over 200
ad hoc consultancy efforts for the company ranging from commodity crops, reforestation,
beef cattle to biofuel feedstocks. Over the past ten years, Vicente has specialized in the
livestock sector and is considered one of the experts in the Brazilian beef sector. Prior to his
career at Informa Economics FNP, Vicente held executive positions with the Bonfiglioli
Group, and Fundap and RSL, two Brazilian consulting companies. He is also a full member
research of NAIPPE, a center of high studies on public policies and strategic issues.
Juliana Rocha. Juliana is an agronomist with post graduate courses in the derivatives
markets for agricultural products. She has five years of professional experience, two of which
at CEPEA/ESALQ (Advanced Studies in Applied Economy) and another two years at
GEA/ESALQ (agronomic initiatives). Juliana is an analyst at Informa Economics FNP and
has been involved in numerous projects related to the crop and livestock sectors, including a
multinational report on Brazilian farmer profiles, a foliar fertilizer survey as well as
coordinating efforts for price monitoring programs for agricultural inputs.
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Nadia Alcantara. Nadia is a certified veterinarian with a master’s degree in Business
Administration. She currently is responsible for all strategic reports, including the commodity
reports (soybeans, corn, cotton and cane), the livestock report and the land acquisition and
rental reports. Also, Nadia is responsible for all ad hoc consulting services which deal with
national accounts. Some of her efforts in ad hoc consulting focused on a special report on
Mapitoba (Maranhão, Piauí, Tocantins and Bahia) farming opportunities, a business
identification effort for dairy cattle, a due diligence effort for soybeans in the Mapitoba
region and a consulting job for fruits and vegetables and beef meats. Prior to Informa
Economics FNP, Nadia worked some three years with a Brazilian consulting group with
focus on agribusiness strategies.
In finalizing this effort, Bruce Scherr, Tom Scott and Mauricio Mendes will be involved in
the analysis of this study. The bios of these professionals are shown below:
Bruce A. Scherr, Chairman of the Board and Chief Executive Officer. Dr. Scherr has
been with Informa Economics, Inc. (formerly Sparks Companies, Inc.) since 1987 in several
executive capacities including President and CEO. In addition, he was an Advisor for
Metalmark Capital LLC, a private equity fund. Formerly he was president of Sparks, Jacobs,
Scherr, Inc. (SJS), a sister company to Sparks, and president of Agri-Commodities, Inc., an
agriculture consulting firm based in Andover, Massachusetts, which was acquired by SJS.
Prior to forming Agri-Commodities, Dr. Scherr was a divisional vice president at Data
Resources, Inc., where he developed and utilized for the public and private sectors the first
commercially available econometric model for US agriculture. Dr. Scherr received his
bachelor's degree from Rutgers University and his master's and doctorate degrees from
Purdue University, all in agricultural economics. Currently, he is a member of the Board of
Trustees of the North American Electric Reliability Corporation, E. Ritter & Company, and
he serves as a member of the Global Strategy Institute Advisory Council of the Center for
Strategic and International Studies. He served as a member of the Board of Directors for
Desert STAR Inc., an electrical transmission Independent System Operator for the Desert
Southwest from January 2000 through February 2002. In addition, Dr. Scherr has served as a
member of The University of Tennessee's (UT) Institute of Agriculture Agricultural
Development Board and UT's Committee for the Future. He was named a 2007 Distinguished
Agriculture Alumni from Purdue University and he is a member of several honorary research
and agricultural societies, a member of the National FFA Foundation Sponsors' Board 2000
through 2001 and a former advisor to the President's Council of Economic Advisers and
National Aeronautics and Space Administration.
Thomas P. Scott, President and Chief Operating Officer. Mr. Scott has been with Informa
since 1989 with the majority of that time being the head of the Informa Economics Memphisbased Project Consulting Group. Mr. Scott's specialized work has included business strategy,
agribusiness economic development, feasibility and site selection work, as well as various
market analyses. In addition to his work in North America, Mr. Scott has extensive
experience in the agribusiness sectors of Central Europe, Southeast Asia and South America.
He has been involved in many training programs developed and delivered by Informa
Economics. Prior to joining the company, he had various assignments in management,
trading, logistics and merchandising with Continental Grain Company. He received his
bachelor's degree in agricultural economics and business from Cornell University and a
master's degree in business administration from the Amos Tuck School of Business
Administration at Dartmouth College where he was an Amos Tuck Scholar.
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
Mauricio Mendes is the CEO of the company and has been with Informa Economics FNP
for 13 years. He started his career at Informa Economics FNP in the commercial division and
his main responsibilities were the coordination of feasibility projects financial analysis and
risk assessment services. Although Mauricio has taken the CEO role since 2005, he is still
actively involved in most major projects. Prior to Informa Economics FNP, he was a
consultant with GCONCI, the leading agricultural consulting group in the citrus sector.
Mauricio is an agronomic graduate from ESALQ and received his MBA from Fundação
Getúlio Vargas University. Recently, Mauricio was involved in an ad hoc project, evaluating
port facilities in Brazil and Argentina.
Other professionals will provide their expertise on an “as needed” basis.
LOGISTICS IN BRAZIL: BARRIERS & OPPORTUNITIES
ENROLLMENT FORM

Yes, I want to purchase the multi-client study entitled “Logistics in Brazil:
Barriers & Opportunities; Solution or Problem” – A Multi-Client Study. The
cost of the study is:
__US$ 13,500 for Informa Economics and Informa Economics FNP clients
__US$ 16,500 for Non-clients

Please have someone contact me to provide further information.
FAX to Informa Economics at (901) 766-8158
FAX to Informa Economics FNP at 55-11- 4504-1411
Name:
Signature:
Title:
Company:
Street Address:
City, Province/State, Code:
Telephone:
Fax:
E-mail Address:
Mr. Tom Scott
President and Chief Operating Officer
Informa Economics, Inc.
775 Ridge Lake Blvd., Suite 400
Memphis, TN 38120
Phone: (901) 766-4586
Fax: (901) 766-8158
Email: tom.scott@informaecon.com
Mr. Richard Brostowicz
Business Intelligence Lead
Informa Economics FNP
Rua Bela Cintra, 967 – 11th Floor
01415-000 São Paulo SP Brazil
Phone: + 55 11 4504-1447
Fax: + 55 11 4504-1411
Email: richard.brostowicz@informaecon-fnp.com