JBS increases rail transport of beef in Brazil
JBS is increasing the use of rail transport for beef from slaughterhouses in central Brazil to ports, expecting to carry 125,000 tons of beef by rail his year, compared with 18,000 tons last year.
Chilled and frozen beef is leaving JBS plants in the states of Mato Grosso, Mato Grosso do Sul, Rondônia and São Paulo for the rail station in Cambé, Paraná. It then covers the remaining 500 km by train to the port of Paranaguá, for export.
The new logistics strategy will help the company save on fuel and toll costs, as well as reducing CO2 emissions by around 13,300 tons from the approximately 4,600 trucks that were carrying the product on an annual basis.
Rail saves 15% to 20% on road transport for JBS, says Gilmar Schumacher, director of logistics at the company.
With 29,817 km of active rail lines in Brazil, the lack of investment in recent decades in railroads in the country has been one of the main reasons that industrial transportation costs in Brazil are among the highest in the world.
In comparison, China has 66,298 km of active railroads, Russia has 84,249 km, and the United States leads with 228,218 km, according to 2012 data from the World Bank.