Brazilian Railway Problems

[oldjim]

I hope CN and CP don't hear about "Take and Pay":

https://www.agweb.com/usfr/article/brazilian-rail-scores-huge-profits-with-grain/

[Klause]

I hope CN and CP don't hear about "Take and Pay":

https://www.agweb.com/usfr/article/brazilian-rail-scores-huge-profits-with-grain/

Only reporting half to story.


The other half is demurrage for cars that don't show up.


CN/CP are trying to negotiate the same with oil companies over multiple years.


Imagine a system where cars come in faster than the elevators can receive grain... That would work in our favor.

[Rareearth]

Maximum efficiency and opportunities for exporters

[WiltonRanch]

Probably not indicative of all Brazil but you see pictures of trucks and equipment stuck in quagmires and crossing nearly destroyed bridges. The farms are expanding into new territory, rails too but road infrastructure looks like it needs to catch up.

[Klause]

Probably not indicative of all Brazil but you see pictures of trucks and equipment stuck in quagmires and crossing nearly destroyed bridges. The farms are expanding into new territory, rails too but road infrastructure looks like it needs to catch up.

The infrastructure requirements are massive... Basically Brazil has had 25 years to build what it took Western Canada 120 years to do...

A lot of those pictures are from the rainforest areas of the country during the wet season... It makes roads impassable... It's like winter here.

Hard to build road surfaces when there's no stable substrate and you get upwards of 2,200mm (that's 6 feet) of rain in a season.

Br-174 gets closed at night... because of the animals (remember... rainforest) and aboriginals... This is a very wild country yet in many areas....


On top of that, Brazil covers a huge surface area.

For instance, BR-153, which runs north-south is on the order of 3,600KM long... and it doesn't go to the north end of the country (It goes to the Uruguay border in the south).