Good morning! Today, waterway transport in the Tietê-Paraná is on pause amid reservoir shortages. Supreme Court looking over their shoulder ahead of Sep. 7 protests. Five years since Dilma Rousseff’s impeachment.
Freight companies suspend traffic in major waterway
Companies operating cargo transportation along the Tietê-Paraná waterway interrupted activities. The water crisis is forcing the government to allocate hydric resources for energy production — which lowers the volume in waterways.
- The Tietê-Paraná waterway had been operating at reduced capacity since June.
- São Paulo authorities tried to convince cargo operators that the waterway remains navigable, to no avail.
Why it matters. Disruption with traffic along the Tietê-Paraná will impact the distribution of Brazil’s soy and corn exports. Sugarcane transportation will also be affected, but to a lesser extent.
- Water transportation is cheaper and less polluting than using trucks or trains.
Impacts. In the immediate future, the impact to agribusiness as a whole will be reduced, as the Tietê-Paraná only accounts for the transportation of 1 percent of Brazil’s grain production.
- In the long term, however, it could hinder investments in waterway transportation, reducing the competitiveness of Brazilian producers due to its archaic logistics system.
- That will especially be the case...