Brazilian Trade Flow and Logistics Performance: Insights from 1990 to 2008
This report analyzes Brazil’s GDP values and trade flow from 1990 to 2008, showcasing how logistics costs, totaling 11.7% of GDP, significantly impact the economy. It highlights the outsourcing trends in logistics services, with third-party logistics (3PL) providers essential to Brazil, mirroring the European and Asia-Pacific markets. Furthermore, it details the planned investments under the Growth Accelerating Program (PAC) aimed at enhancing the transportation network, including railways and ports, which will reshape the logistics landscape by 2025.
Brazilian Trade Flow and Logistics Performance: Insights from 1990 to 2008
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Presentation Transcript
Brazilian Trade Flow from 1990 to 2008 (in billion dollars, FOB) US$ 318 Bilhões US$ US$ 169 US$ 149 Source: SECEX *Jan/Out
Economic Environment in Brazil 1994 Source: IBGE
Evolutionof Logistics Performance Index - Brazil Source: Banco Mundial
Total Revenue of 3 PL X Quantity of 3 PL PSLs bilhões Quantity of 3PL Revenue 3PL (billions R$) Source: Tecnologística Magazine.
LogisticsCost Logistics costs represents 11.7% of Brazilian GDP – 63% of logistics services are outsourced 3PL providers penetration in Brazilian market is similar to Europe and Asia-Pacific Logistics costs correspond to approximately 9% of companies turnover Source: ILOS Third Party Logistics Market Report – 2008
Logistics Services most used in Brazil 1997 2009 Source: ILOS Institute
ILOS´sLOGISTIC PREMIUM Logistics Services most used in Brazil
Transport Matrix (TKU)Brazil x USA Transport Matrix (TKU)Brazil x USA Transport and Cost Matrix Modal Brazil (2006) United States (2006) % TKU1 US$ / 1.000TKU % TKU1 US$ / 1.000TKU 25,8% 56,5% 12,8% 4,8% 0,1% 17 107 27 30 688 38,5% 29,6% 11,5% 20,1% 0,4% 19 284 6 7 833 Railway Roadway Waterway Pipeline Airway 2006: U$ 1 = R$ 2,17 USA data are considering just pipeline Source:”Logistics Panorama – Logistics Cost in Brazil” 2008 COPPEAD Analysis: ILOS Institute
PAC Investments (Growth Accelerating Program) The total investment planned in PAC is of US$ 259 billion. Total investment in logistics is $ 30 billion (2007-2010). Million US$ 2007: U$ 1 = R$ 1,9478 PlannedInvestments (2007 – 2010) Source: Ministry of Planning
PAC Major Logistics Investments Roadway • Improvements and duplication of routes Railway • Expansion of existing network Ports • Dredging
Railroad NetworkCurrent x Planned Current Network PAC Railways + 29.013 KM 8.000 KM - Source: ANTT; ONG “Contas Abertas”
New Brazilian Railway Network With this new network, it is expected that the railway modal will be responsible for about 32% of the Brazilian transportation matrix in 2025. 2006 2025 32% 37.000 KM + - Source: ANTT; ONG “Contas Abertas”; ”Logistics Panorama – Logistics Cost in Brazil” 2008/2006; PNLT
Our Pespective for Brazil: Demand High demand for logistics infrastructure
THANK YOU Cesar Lavalle +55 (21) 9102-5375 lavalle@ilos.com.br www.ilos.com.br Source: ILOS Institute