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The record soybean harvest is slowed by the backlog of trucks at Brazil River port

The logistics of one of the main export hubs in the world for soybeans are being overwhelmed by a record harvest. Backlogs for soybeans being moved from the world's biggest producer and exporter highlight ongoing logistical challenges in Brazil's agriculture supply chain. A large portion of Brazil's soybean harvest is headed for China.

It's a shame here in Miritituba," said trucker Jeferson Borges da Silva who, after driving 1,200km from Mato Grosso waited for a?30 km (20 mile) queue. "We have been waiting in line for 2 days, this was the worst year yet."

Miritituba is a crucial transshipment point that handles 12 million metric tonnes of grains per year, including corn and soy. Cargill, Bunge and Brazil's Amaggi operate river terminals, where crops are loaded on barges to be transported downstream to larger facilities that can fill ocean-going ships. This time of year, traffic is usually heavy.

PROTESTS COMPOUND EXPORT CHAOS Indigenous activists invaded a Cargill Transshipment Facility in?Santarem in protest this month against the government's policy to dredge the Amazon basin and expand the shipping capacity. The government rescinded a decree that allowed for such expansions of waterways on Monday, causing further uncertainty to agricultural exporters.

Wellington Bressan, a trucker from Miritituba, said that the Indigenous protests could have contributed to the traffic jam in Miritituba because drivers were rushing to get unloading spaces. "Truckers are paid on commission. If they work, then they earn money. They didn't want to wait to come to Miritituba. Cargill temporarily halted its Santarem Terminal during the protests. On Thursday, it said that they are working to resume their activities. The company issued a statement thanking employees for their "resilience." It also reiterated that it was committed to transporting food in a "safe and reliable" manner.

CONCERNS ABOUT INFRASTRUCTURE MOUNT

Thiago Pera is a logistics expert from the University of Sao Paulo. He said that the revocation of the?government decree could slow down efforts to improve the logistical infrastructure along the northern export corridor. He warned of the medium- and long term impacts on Brazil's capacity to handle agricultural exports efficiently.

Pera stated that the situation is getting more difficult. He added that dredging could be done to allow larger vessels to move year-round. This would ease pressure on trucks and lower freight costs. About 60% of Brazilian agricultural exports are transported by truck.

Truckers such as Sonia?da? Silva expressed frustration at the outdated infrastructure of Miritituba terminals. "How will you fit 1,000 trucks into a yard with only 500 or 200 spaces?" She asked.

(source: Reuters)