The importance of geography for distribution logistics in Brazil

Abstract

Geography is essential for distribution logistics in Brazil due to its territorial, climatic and economic characteristics. Brazil has the 5th largest territory in the world, with one of the largest road networks in the world, posing a major logistical challenge from north to south and east to west, transporting all types of goods. With a vast and diverse territory, our country has a major problem to consider, which involves logistical actions and planning to transport various items across its more than 8 million square kilometers. It is important to understand that there are several types of biomes in Brazil, which influence the routes and, consequently, their logistical costs. In the state of Amazonas, for example, there may be difficulties in river transport, while in the cerrado there is ease in agricultural transport and commodity logistics. Another important factor is that distribution is directly influenced by the concentration of industrial and urban centers, such as the states of São Paulo, Rio de Janeiro and Minas Gerais. Regions such as the North face greater challenges in receiving products due to their geographic location, increasing transportation costs and time. It is necessary to understand geography to optimize logistics routes, reduce costs and improve logistics distribution efficiency. Investments are needed, especially in railways that connect the most extreme regions of the country, such as the North and Northeast, making them more commercially and industrially competitive. The Federal Government has invested timidly in the railway model; a recent example is the North-South railway, which was completed and has been in operation since 2018.