Sustainable impacts of multi-mode logistics in Brazil’s soybean supply chain

Soybean production plays an important role in the Brazilian economy, contributing approximately 7% of its GDP. While existing studies focus predominantly on cultivation issues, they often overlook broader supply chain dynamics. Considering the vast territory of Brazil, logistics poses a potential bottleneck for competitiveness. To overcome this, two major infrastructure projects, Ferrogrão and Norte/Sul, aim at integrating railway, waterway, and highway networks, enhancing connectivity between midwestern soybean-producing municipalities and Brazil's northern ports. The present study evaluates the impact of these multi-mode logistics projects on sustainability, focusing on cost efficiency (economic dimension), CO2 emissions (environmental dimension), and socioeconomic outcomes (social dimension). Using a logistic optimization model, we analyzed strategies that minimize soybean transportation costs and CO2 emissions along the newly constructed northern section of the Norte/Sul railway. Additionally, econometric methods were employed to compare the socioeconomic effects of the Norte/Sul railway on municipalities relative to the highway routes targeted by the Ferrogrão project. Findings indicate that adopting multi-mode transport reduces logistics costs by 13-19% and CO2 emissions by about 10%, although direct impacts on wages at transshipment municipalities show variability, depending on the specific project considered.