Analysis of the ethanol fuel logistics chain in Brazil: an approach focusing on transportation and storage activities

Uma abordagem nas atividades de transporte e armazenagem

Abstract

Fuel ethanol has expanded its strategic relevance in Brazil, both for its economic contribution and for its role in energy security and the transition to a low-carbon economy. However, the continental dimension of Brazilian territory imposes significant challenges to the integration between producing regions and consumer markets. Production is concentrated mainly in the Southeast and Center-West regions, while demand is distributed throughout the country, requiring logistics systems capable of enabling long-distance distribution. This article analyzes the organization of the fuel ethanol logistics chain in Brazil, with emphasis on transportation and storage activities and on distribution flows between producing and consuming regions. The research is descriptive and exploratory in nature, with a qualitative approach, grounded in secondary data drawn from institutional databases and specialized sector literature. The results indicate that ethanol logistics is complex and involves different agents and modes of transport. Although there is growing use of intermodal solutions involving railways, pipelines, waterways, and cabotage, ethanol movements still show a strong dependence on trucks, which account for more than 70% of the volume transported annually. Also noteworthy is the role of trading companies in the logistical coordination of the chain, acting in cargo consolidation, inventory management, and intermediation between producers and distributors. Additionally, the analysis shows that the inability to fully utilize PIS/COFINS tax credits associated with transportation and storage expenses generates distortions that raise logistics costs and reduce the economic efficiency of the chain, affecting the competitiveness of the biofuel in the energy market.