Volume 4• Number 2 • July - December 2011

STUDY OF LOGISTICAL INTERMODALITY IN PARANÁ STATE – Technical Note

Claudia Tania Picinin Universidade Tecnológica Federal do Paraná [email protected] João Luiz Kovaleski Universidade Tecnológica Federal do Paraná [email protected] Luiz Alberto Pilatti Universidade Tecnológica Federal do Paraná [email protected] Bruno Pedroso Universidade Estadual de Campinas [email protected] Marcus Vinicius Pereira Gonçalves Faculdades Integradas de Itararé [email protected]

Abstract: Intermodal transportation is characterized by the transfer of goods from the origin point to a destination, involving two or more different modals of transportation. This paper aims to analyze modal road and rail transportation in the Campos Gerais region, as a form of concentrated cargos (stor- age and distribution) in this region. The empirical secondary data was obtained from federal agencies, such as the Ministry of Development and Instituto Brasileiro de Geografia e Estatística (IBGE). The modal choice emphasizes each specific characteristic and costs cutting. The Campos Gerais region pres- ents significant exports, representing 41% of the state of Parana in 2004. The logistics junction of Cam- pos Gerais region is focused on modal road-rail, centering on a large volume of cargo in this region.

Keywords: Logistics; modal of transportation; intermodality.

1. Introduction through four ways of organizing logistics organiza- tions internally. Until 1950, the companies developed The methods used to perform the transportation may activities on their own, ruled by the “era of transpor- be the most varied depending on the type of cargo, tation.” From 1950 to 1970, companies ran through location of the production company, availability of a phase of predominance of a systemic vision, in resources for the implementation of transportation which the “age of business logistics” predominated. such as highways, railroads, airports and ports, as From 1970 to 2000, there were two phases of greater well as several other factors that can directly and in- structural impact in organizations, which the “era of directly influence this practice. supply chain,” was active from 1970 to 2000, with an integrated circuit of manufacturing, logistics Machline (2011) argues that during the period be- and other organizational functions. After 2000, the tween the 1950’s to 2000’s, companies have gone 71 Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil 72 Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 organization acts based on an imprint aimed at the will be detailed , being more directly linked to the global view on the “era of supply chains.” Based on structure of the logistics platform to be installed in a corresponding approach, Bozarth et al. (2009), and the city of . Machline (2001), stated that in the last 20 years there was a “convergence of the traditionally distinct ar- All the transportation modes use terminals and plat- eas of operations management (OM), sourcing, and forms to move the loads. The terminals are inevita- logistics into a single area commonly known as sup- bly the origin or destination point of traffic, and in ply chain management (SCM)”. some cases, the point where the load requires ser- vices such as consolidation/deconsolidation for the According to Damaria (2004), the intermodal trans- distribution of loads. Therefore, they can be consid- portation of cargo uses the integration of different ered a mix of facilities where the transport process is modalities, objectives the gain efficiency. Intermod- originated or completed. al transportation requires bill for each shipment in different modals under different responsibilities, as 2.1 Modal road multimodal transport requires a single shipment bill under the responsibility of a legal person. Among the modes, roads are most used in Brazil, rep- resenting about 60% of the transport of cargo carried For Rodrigues (2003, p. 31) these modals can be sub- through the country. The road still has a long lifetime divided into road, rail, river / lake, sea, waterway, air in Brazil, because even though it has a considerably and pipeline. Road transportation, even in some cases high cost compared to rails, for example, it takes ad- accounting for the high cost carrier, covers most of the vantage of the structure the country offers, considering Brazilian territory. The railway route has no flexibil- the existing roads. ity, being restricted to a single path and is not as fast as road transportation, but has a significantly lower The lower deployment cost per kilometer and the low- cost. Road transportation is different from rail routes est period of maintenance compared to the modal rail because it can supply routes without walking dis- results in a fast expansion of road infrastructure (Ro- tance, finished products and semi-finished products. drigues, 2003, p. 49). A major reason for the develop- ment of highways is the shortest time for construction Ballou (1993), affirms that the basic difference be- and maintenance, being encouraged by the rulers of tween rail and road modal transportation is their this modal choice, especially in the period between way of acting, once trucks are able to manipulate a 1956 and 1961. smaller variety of cargo due to security restrictions Road transportation is the most flexible and agile to access (regarding size and weight of the cargo). In addition, cargo. They are transported in spaces reserved directly trucks offer greater flexibility in delivering cargo in with carriers, which can be done together or separately installments. with another cargo, when the load is sufficient for the -to tal space of the vehicle (Damaria, 2004). Road transporta- This article aims to analyze the road and rail trans- tion is widespread by the structure and the convenience it port modality in the region of Campos Gerais, as a offers, considering the unfolding of the course. According form of concentrated loads (storage and distribu- to Rodrigues (2003, p. 51), road transportation is a more tion) on that studied region. efficient and simpler type of transportation; its only re- quirement is the existence of roads.

2. Intermodality The flexibility offered by road transport is undoubt- Intermodality is the transportation of merchandise edly one of the key differing points which gives it an advantage, considering other modes, so the country from the origin point to a delivery point, by using has today a considerable fleet of trucks that perform different modes. The documentation is issued inde- this type of service for both cargo closed, and for frac- pendently, one for each carrier, each taking respon- tional loads. sibility for their transport.

For Damaria (2004), the choice of modal to be used 2.2 Modal Rail in the international distribution of merchandise is critical, so it is very important to know every detail According to the Agência Nacional de Transportes Ter- 2 for creating and developing appropriate logistics. restres - ANTT , rail transportation is characterized by For this study, modal road and rail transportation 2 National Land Transportation Agency Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 73 carrying large volumes with high efficiency, especially east and Northeast, given part of the Midwest and in cases of displacement to medium and long distances. North. Approximately 28,840 km of network was The loads typical of this transportation are: steel prod- granted (ANTT). ucts, grain, iron ore, cement and lime, fertilizers, petro- leum, limestone, coal and clinker, and also containers. 2.3 Comparisons between the modal The modal rail embraces the important features the high competitiveness of transport for large volumes and long The rail provides greater security, compared to road distances, and are safe, economical and clean - in this transportation, because it has lower accident rates case, there is an option to use biodiesel (CNT, 2007). and a lower incidence of burglaries and robberies. To Caixeta Gameiro and Filho (2002, p. 3), is the fol- According to Ballou (2001), there are two legal types lowing situation is considered cargo theft: “the situ- of rail service, being common or private carriers. For ation in which individuals illegally take possession private services, the carrier sells transportation to all of part or the entire load of a carrier vehicle, which shippers, as the services settled by economic and se- may occur, in the last case, the disappearance or no curity regulations of government agencies. Private of the vehicle concurrently with the stolen goods” transportation is already acquired by the shipper for In Brazil, the occurrence of “cargo theft” indicates a the purpose of serving only the owner. Due to the lim- preference for products with high added value and ited scope of the private carrier, the drive train is the easy market distribution. usual type. Road transportation has a unique feature that differ- According to Damaria (2004), the modal rail normally binds neighboring countries. It has flexible routes, by entiates it from all other modes, which is its ability being restricted to a single path, and is not as nimble to travel by any means. It doesn’t attach to fixed or as road transport. The share of railway transportation rigid paths routes, having the ability to pass by any between Brazil and other Latin American countries is place, presenting a unique flexibility. This feature still unexpressive, the difference being a gauge of the gives to this mode an extraordinary advantage in the biggest problems. The movement of freight by railroad race for the load with the other modes (Keed, 2003). offers special benefits to the shipper, either in bulk, coal or grain, refrigerated goods or automobiles, which re- This modal has an advantage towards rail modals or quire special equipment for transportation. air modals, once the door to door services are not inter- rupted by loading and unloading between the source and destination, along their frequency of performance, 2.1.1 Modal Rail in Brazil availability, speed and convenience. Besides these Brazilian rail has been experiencing an important characteristics, modal rail road is different from other moment after going through a process of granting aspects, such as transportation may be common, pri- the federal networks a private initiative, imple- vate or hired through a contract carrier, which attends mented by contracts for the operation of public rail the needs of a particular form of a shipper. freight. The Union concluded by the addition of Comparing the railroads to other modes, it seems concession contracts, the Union and the concession- that its implementation cost is lower, but its oper- aires signed the leases on assets tied to each one of ating cost is very high. It is the most widely used networks coming from the privatization of the Fed- in Brazil, allowing flexibility and access to isolated eral Railway SA - RFFSA. As one of the results, the points (Wanke & Fleury, 2000). transported volume has grown year after year, pro- viding significant savings in cargo transportation to According to Bordin (2008), the modal most used the country. in Brazil is the road; the second modal is present in the rail operating costs low. The waterway modal According to Clésio Andrade (2007), President of oscillation has increased the volume transported, a the CNT, modal rail currently constitutes 25% of decrease of 6.5% from 2005 to 2006. Figure 1 shows Brazil’s transportation matrix. The Brazilian railway the carriage performed through road, rail and water system totals 29,706 km, focusing on South, South- transport in the period 2000 to 2006. Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil 74 Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83

Figure 1 – Transport road, rail and waterway

Source: CNT (2007)

In Brazil, considering only 2006, the road freight of moving between two points (origin and destination) transport moved 639 million tons, although, rail and is contained in fuel, manpower, maintenance, de- freight moved 431 million tons of products. In 2000, preciation of equipment and administrative costs. Bal- Brazil ranked 446 million tons and rail transport 304 lou (2001) presents the approximate costs per ton-mile million tons. Compared to 2006 data, it is perceived of the modes. Costs are different for each type of trans- that the increase in volume transported through the port as pointing to a table 1: road transportation has increased more significantly Table 1 – Value per modal compared to rail transportation. Average freight, transport per mile, cost per modal Modal Price/ton mile 2.3.1 Cost of transportation Rail 2,50 The necessity to know the current total costs of logis- Road 25,08 tics, physical distribution and storage of products in- Waterway 0,73 fluences the negotiation potential of the organization. Pipeline 1,40 Christopher (2002), says the need to manage the activ- ity of total logistics and distribution mainly as a com- Airway 58,75 plete system, considering the effects of decisions taken Source: Adapted by Ballou (2001, p. 121) in one area of cost on others, has considerable impact for the company. The verification of the cost should not The values for the air transport value and represent place rigid, which has not allowed analysis of the costs. the largest waterway and pipeline with the lowest Flexibility for the analysis is necessary. values. The damages also require transport. Trans- portation must be done quickly; however, it must in- Martins et al (2010), points out that the transporta- clude reasonable care to avoid or prevent damages. tion activity is the basis of distribution, since it is Citing the figure of the transporting agent, Ballou responsible for directly impacting costs, and posi- (2001, p. 122) points out: “as the ability of carriers to tively or negatively influences customer satisfaction. move loads without damage is different, it becomes The authors argue that the act of delivery performed a factor in selecting a carrier.” The losses are tied to with delays or defects affect customer loyalty or im- costs such as losses resulting from inadequate ser- pacts on decisions regarding new purchases. vice to customers.

Ballou (2001) says that transportation cost is most relevant Costs can be classified as variables; in other words, in logistics, accounting for two thirds of total logistics which change according to the volume of ser- costs. The transportation modes can be used individually vices provided for loads carried and fixed costs, (water, rail, road, air and pipeline) or a combination of which are independent of this variation. For the them, featuring intermodality. Appropriate price, the av- analysis of transport costs it is important to check erage time in transit time, variability in transit and dam- two variables: volume and shipment. Each one ages are considered the choice of modes. These factors are important to make the most appropriate decision. of them has a particular characteristic modal for costs as indicated by their nature. So, there are The price corresponds to the cost of transportation to some dimensions for the different types of modes. the shipper. The transportation cost includes the value The modal rail presents its high fixed costs and vari- Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 75 able costs significantly lower. According to Ballou tion) in the region – the knowledge produced about (2001), the loading, unloading, billing, collection the subject was explored . The methodological pro- and handling of trains in the yard of multiple prod- cedures have first appeared in a theoretical and em- ucts and multiple cargo terminals extend costs for pirical study and later in a survey of data available railroads because the increase in shipments, have on the internet. the effect of reducing costs in scale of the terminal. The cost of the railway includes wages, fuel, oil and Scientific publications and information available on- maintenance. Fixed costs represent, in average, one line in IBGE, a federal agency related to the Minis- third of total costs. The railroad’s strategy is to re- try of Development, in order to obtain the empirical duce unit costs, in other words, distribute the costs secondary data it was used . Data related to logistics on an economy of scale. structure in the Campos Gerais region, as well as the GDP by sector (agriculture and industry) of Ponta For the highway mode, fixed costs are low, but vari- Grossa and the fleet of vehicles was collected from able costs are considerably high, due firstly to main- the IBGE database. tenance of roads, charged to users in the form of taxes on fuel, tolls and fees on the weight carried per mile. Data on imports and exports related to the districts In Brazil, according to Mason et al. (2003), empirical within the region of Campos Gerais was collected in studies have shown that the cost of transport to reach the database of the Ministry of Development, Indus- 2% to 4% of sales and 30% to 60% of total logistics try and Foreign Trade, by clicking the label “comércio costs of firms. Besides direct costs, related to- trans exterior” and later on the label “estatísticas de comércio portation decisions, there are also storage costs, ser- exterior.” The collected data allowed for the construc- vices and production planning (Holter et al. 2008). tion of a panorama of the following aspects of the Campos Gerais region: (i) the volume exported and Costs for terminal expenses, which include collec- imported by the municipalities of Campos Gerais; tion, delivery and management platforms, billing, (ii) The main products exported and imported by collection and transmission lines represent 15% to the region of Campos Gerais; (iii) Export of Ponta 25% of the total cost of transportation (Ballou, 2001). Grossa in relation to other municipalities in the state The total cost per unit decreases by increasing the of Paraná which present a similar dry port structure volume transported and the distance of the ship- installed. ment because the cost of the terminals are better ab- sorbed by ton-miles. To present the data previously mentioned, it was considered an import and export volume equal to Wanke, Correa and Hijjar (2010), stand out some 100%, and in both situations not every district of the ways, such as outsourcing, to increase productiv- region has an import or export activity. Empirical ity and reduce logistics costs. This type of activity data collected is predominantly quantitative, since is not new, but the benefits are clear, since this seg- the import and export indicators are presented nu- ment seeks excellence through specialization. From merically, with expository charts and graphs. It was this perspective, Martins et al. (2005), indicate that used basic statistics for the presentation of the results the goal of integrating the supply chain is reducing using percentages, sums and cumulative frequency. cost generated by sectors of production, inventory, warehousing, distribution and transportation. 4. Outcomes

4.1 Junction logistics in Campos Gerais 3. Methodology The region known as Campos Gerais was defined by According to the research classification proposed by present grasslands, forests or isolated clusters of forest, Gil (2010), the present study is classified as an ap- where often we see the Araucaria pine. In other words, plied nature study, quantitative considering the ap- the region was bounded due to similar geographic fea- proach of the problem, exploratory considering the tures. The region covers routes taken by drovers from aims of the study and bibliographical regarding the to São Paulo and and technical procedures. it is composed by the following cities: Arapoti, Caram- beí, Castro, Guamiranga, Imbaú, Imbituva, Ipiranga, To identify the problem - analysis of the modal road Ivaí, Jaguariaíva, Ortigueira, Palmeira, Piraí do Sul, and rail transport in the city of Ponta Grossa, as a Ponta Grossa, Porto Amazonas, Reserva, Sengés, São way of concentration of loads (storage and distribu- João do Triunfo, Teixeira Soares, Telêmaco Borba, Tiba- Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil 76 Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 gi and Ventania. Figure 2 shows the geographical distribution of the cities in Campos Gerais.

Figure 2: Cities in Campos Gerais Area

Source: Associação dos Municípios dos Campos Gerais3

Founded in 1812, Ponta Grossa stands out in the station” was inaugurated, which linked Sao Paulo to composition of the Campos Gerais logistic junction. Rio Grande do Sul by railroad. The municipality is limited territorially with Campo Largo, Ipiranga, Teixeira Soares, Palmeira, Tibagi and The railway lines depart from the State of Parana Castro. According to the Brazilian Institute of Geog- through the capital and following the port. The rail- raphy and Statistics - IBGE (2009), Ponta Grossa is lo- roads enabled the development of culture, commerce cated 975 meters above sea level, has a population of and transportation in the region, having connected the 314,680 inhabitants, of whom 164 000 are the econom- region to major centers. ically active population (PEA - 15 to 65 years ). Ponta The positioning of Ponta Grossa, between the rail route Grossa has 2068 km ² of territorial extension and is linking the interior of Parana to Paranagua Port and located 118 km far from the capital, being linked to agricultural areas of Parana provide the installation of it by highways and railroads. The city has a core po- manufacturing industries, with activities geared to for- larization potential due to its location, including road eign trade. Figure 3 presents the logistics conjuncture and rail junctions (Ipardes, 2009). The first link with of Ponta Grossa City and its region. the capital was in 1894. In 1906 the “Square Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 77

Figure 3: Logistics Conjuncture of Ponta Grossa City and its Region

Source: IBGE, 2009.

Ponta Grossa presents dense road and rail junctions, production, corresponding to an average of 240 cars enabling access to other regions. According to the daily. Figure 4 shows the interconnection station. IBGE (2009), the municipality of Ponta Grossa has paved roads, and many of them are duplicated. The Figure 4: Junction logistics Ponta Grossa closest highways are BR-376, connecting the region to the port of Paranagua, north and northeast of the state; BR-37 and BR-277 providing access to the West and Southeast regions of the state, linking Ponta Grossa PR 151 to Sao Paulo and Planalto Central. Ponta Grossa is located near Transbrazilian High- way, which links the northern, central and southern Brazil and is a major route for disposal of products.

Ponta Grossa includes a large rail infrastructure that goes through the same agricultural production for export through the port of Paranagua. The area railway Uvaranas allows for the screening of incom- ing cargo, while the Desvio Ribas (located near the Industrial District) made the delivery to the area of industries. This same deviation carries the flow of Source: IBGE (2009) Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil 78 Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83

The system of railroads in the city consists of the The primary sector (agriculture and animal hus- Federal Railway Network SA, which has its direc- bandry) is four times smaller than the secondary sec- tion lines to Curitiba, Paranagua port and southern tor. The trade sector stands out with vehicles, parts Brazil, Central Railroad of Paraná, with direction and accessories, hardware, super and hypermarkets, lines to Sao Paulo (Ourinhos) and Apucarana in the fuel, agricultural, household and lubricants. Table 2 northern part of the state through Wenceslas Bráz). shows the PIB of Ponta Grossa in accordance with the business sector: Near Ponta Grossa there are several storage centers for products beyond units for slaughtering animals, strengthening the export potential and industrial- Table 2 – Ponta Grossa GDP by sector ization of the region. GDP for activity of Ponta Grossa Year Agriculture Industry Service 4.2 Imports and exports in Campos Gerais 1996 3% 30% 67% In exports, Parana took the position of second place 2000 5% 56% 39% in Brazil in exports in 2004, and in 2003 it took 4th place. From 2003 to 2004, exports on Paraná in- Source: IBGE (2009) creased 43% in the first semester. It is noteworthy that from 1996 to 2000, there was a re- Paraná exported a total of $ 1 billion to China in a versal in the predominant sectors of activity. The ser- period of eight months (January-September 2004). vice had a greater degree of activity in 1996 and the China represents the largest purchaser of products industry begins to exert greater importance in PIB in from state and these are mainly grains and poultry. 2000. To characterize the export potential of Campos Gerais a survey of exports was held at the Ministry. The The sum of exports from the municipalities of Cam- region exported a total of U.S. $ 2,120,431,004. pos Gerais in the period from January to September 2004 represents 41% of exports from Paraná, corre- The municipalities that contribute to a greater sponding to U.S. $ 1.677.473.385 in F.O.B. values. degree of significance to leverage the volume The economic sectors that stand out are secondary, of exports from the region are Ponta Grossa including food, chemical, wood processing, furni- and Telêmaco Borba, respectively. Table 3 pres- ture manufacturing, packaging, beverages, automo- ents the volume exported by Campos Gerais tive components, metallurgical, and trade. in 2008.

Table 3 – Campos Gerais Region Exported Volume

Percentage by municipalities of Municipalities US$ Campos Gerais Ponta Grossa 1.619.510.532 76,38 Telêmaco Borba 349.660.138 16,48 Jaguariavaia 50.069.258 2,36 Arapoti 44.536.806 2,10 Castro 21.524.295 1,01 Ventania 18.587.864 0,87 Carambei 9.038.903 0,41 Palmeira 5.526.120 0,26 Tibagi 1.296.407 0,06 São João do Triunfo 406.113 0,02 Ortigueira 274.568 0,04 TOTAL 2.120.431.004 100

Source: Adapted of Ministry of Development, Industry and foreign trade (2008) Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 79

Ponta Grossa, by itself, exported 76.38% of the exported The main products in natura were exported, such as volume, amounting to US$ 1,619,510,532. Ponta Grossa grain (mostly soy). In 2004, the automotive products and Telêmaco Borba sent abroad a total of 93% of to- of increasing their participation in the State’s exports, tal volume. It is noteworthy that the municipalities are not all municipalities belonging to Campos Gerais that accounting for 16.5% of total volume. For 2008, follows carry out export activities. in Table 4, with the main products exported.

Table 4 – Principal Products Exported by Campos Gerais

Products Percentage by Campos Gerais Bagasse and solid waste soybean 19,55 Cuts and offal of chicken 17,68 Brute soybean oil 16,44 Soybean oil crushed 4,84 Soybean oil in containers 3,30 Grain maize 2,74 Frozen pork 2,48 Coated paper 2,13 Meat of turkey cock 1,42

Source: Adapted of Ministry of Development, Industry and foreign trade (2008)

The rest are the most significant products to make up total is US$ 335,401,383. Only seven Municipalities That the volume exported -solid soy waste, the pieces and Are part of the Campos Gerais region present imports, offal of chicken and crude soybean oil. In imports, the the Table 5 Indicates:

Table 5 – Volume imported by Campos Gerais – PR

Percentage by municipalities Municipalities US$ of Campos Gerais Ponta Grossa 227.701.450 67,89 Telêmaco Borba 45.473.006 13,56 Arapoti 25.160.109 7,50 Jaguariaíva 12.142.971 3,65 Carambeí 9.503.571 2,83 Castro 8.526.743 2,54 Palmeira 6.717.332 2,03 TOTAL 335.401.383 100

Source: Adapted of Ministry of Development, Industry and foreign trade (2008)

Ponta Grossa represents 67.89% of the capacity im- ucts account for 60.44% of the total imports by broad ported by the region. Imports are the major chemicals, fields. Table 6 shows the relationship of all imported which are used to manufacture other products, wheat products, corresponding with its equivalent in total with rye and wheat and soybeans. These three prod- volume. Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil 80 Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83

Table 6 – Imported products by Campos Gerais

Products Percentage by Campos Gerais Chemical compound 42,34 Wheat and wheat with rye 13,42 Soybean 4,68 Laminate (iron and steel) 1,46 Beans 1,40 Accessories for aluminum tubes 1,31 Granules, chips and marble powder 1,31 Vulcanized rubber tube 1,27 Paper of cellulose 1,11 Panels and Woods fibers 1,05 Others 31,65

Source: Adapted of Ministry of Development, Industry and foreign trade (2008)

The region imports a lot of products in very small quantities, which together produce 31.65% of the value of ex- ports, shown in table as “other.” Compared to other municipalities with dry port already installed, Ponta Grossa has a high amount exported. Table 7 shows the amount exported by Ponta Grossa compared with municipalities that have installed a dry port in Parana.

Table 7 – Exports of Ponta Grossa and municipalities with dry ports

Municipalities Volume exported (US$) Ponta Grossa 1.232.272.676 Maringá 455.809.925 Londrina 366.001.655 Cascavel 273.390.308 Foz do Iguaçu 136.556.637 Source: Adapted of Ministry of Development, Industry and foreign trade (2008)

Paraná has its main logistics platforms installed in the cities of Maringá, Londrina, Cascavel and Foz do Iguaçu. Adding the amounts exported by these cities, it has a total of U.S. $ 1,231,758,525, and Ponta Grossa exported U.S. $ 1,232,272,676. The difference in the amount exported by cities and Ponta Grossa that include logistics platform is U.S. $ 514.151. Figure 5 shows the description of the fleet at the national and local levels. Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 81

Figure 5: Vehicle fleet

Source: IBGE (2009)

According to analysis by IBGE (2009), 4.7% of Ponta and Telêmaco Borba, respectively. Grossa’s vehicles are designed to carry loads; in oth- er words, they are composed of trucks. In the same In imports, the total is U.S. $ 335,401,383. Ponta Gros- sphere, the average for Paraná corresponds to 4.8% sa represents 67.89% of the volume imported by the of the total fleet; Brazil has 3.8% of the fleet of -ve region. The major imports are chemicals, which are hicles to transporting loads. used to manufacture other products, wheat with rye and wheat and soybeans. These three products rep- resent 60.44% of the total imports by broad fields. 5. Discussion

The positioning of Ponta Grossa, between the rail Conclusion route linking the interior of Parana to Paranagua Port and agricultural areas provides the installation Intermodality is the transportation of merchandise of manufacturing industries, with activities geared from a point of origin to a point of delivery, through towards foreign trade. Ponta Grossa presents dense different modes. The documentation is issued inde- road and rail junctions, enabling access to other re- pendently, one for each carrier, each one taking re- gions. Ponta Grossa includes a large rail infrastruc- sponsibility for their transport. ture that passes through the same agricultural pro- All transportation modes used terminals for the duction for export through the Paranagua Port. movement of loads. The terminals are inevitably the The system of railroads in the city consists of the source or destination of traffic, and in some cases, Federal Railway Network SA, which has its direc- the point where the load requires services such as tion lines to Curitiba, Paranagua port and southern consolidation/deconsolidation to distribute the load. Brazil, Central Railroad of Paraná, with direction Therefore, they can be considered a union of facili- lines to Sao Paulo (Ourinhos) and the northern city ties where it originated or completes the transport of Apucarana through Wenceslas Bráz). process. In Brazil in 2006 alone, the road freight transport turnover was 639 million tons, although To characterize the export potential, a survey of ex- rail freight moved 431 million tons of products. ports of Campos Gerais was developed by the Bra- zilian government. The region exported a total of The present study investigated the Campos Gerais U.S. $ 2,120,431,004. The municipalities that contrib- region as a potential area for intermodality transpor- ute to a greater degree of significance to leverage the tation. The data presented in the previous section, volume of exports from the region are Ponta Grossa plus the logistics structure which composes the re- Picinin, C. T., Kovaleski, J. L., Pilatti, L. A., Pedroso, B., Gonçalves, M. V. P.: Study of Logistical Intermodality in Paraná State – Brazil 82 Journal of Operations and Supply Chain Management 4 (1), pp 71 - 83 gion of Campos Gerais, express an environment References which could be cargo centralized in Parana State, ANTT – Agência Nacional Dos Transportes Terrestres. A evolução as well as the municipalities of Maringá, Londrina, do transporte ferroviário. (2010). Brasília. Cascavel and Foz do Iguaçu. In addition to the large volume of import and export cargo that are trans- ASSOCIAÇÃO DOS MUNICÍPIOS DOS CAMPOS GERAIS. Avail- ported in the region, there is a concentration of rail- able at: . Accessed May 15, 2009. way infrastructure installed, besides support roads Ballou, R. H. (1993). Logística empresarial: transportes, administra- providing access to metropolitan areas and ports in ção de materiais e distribuição física. São Paulo: Atlas. Brazil. Therefore, it is understood that the purpose Bookman. (2001). Gerenciamento da cadeia de suprimentos: plane- of this study was achieved, since there was the pre- jamento, organização e logística empresarial. (4th ed.). Porto sentation of data showing the volume of cargo trans- Alegre: Ballou, R. H. ported centralization, as well as the main modes of Bordin, E. Q. (2008). Análise das empresas transformadoras de carga transportation incident in the region (road and rail). com ênfase na tecnologia de rastreamento. Dissertação (Mestrado em engenharia de transportes) – Programa de pós-graduação Since there are few Brazilian studies in logistics, and de engenharia, Universidade Federal do , Rio more particularly in the modes of transportation, de Janeiro. this study presents potential contribution to scholars Bozarth, C. C.; Warzing, D. P.; Flynn, B. B.; Flynn, E. J. (2009). The and public officers, by presenting potential improve- impact of supply chain complexity on manufacturing plant ment and business opportunities, respectively. performance. Journal of Operations Management, v. 27, p. 78-93.

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AUTHOR’S BIOGRAPHY

Claudia Tania Picinin: MSc in Production Engineering by UTFPR (Brazil). PhD student in Business Adminis- tration of UP (Brazil). Professor of Business Administration undergraduate course of FAFIT-FACIC (Brazil).

João Luiz Kovaleski: PhD in Industrial Instrumentation by Université Joseph Fourier (France). Professor of MSc in Production Engineering of UTFPR (Brazil).

Luiz Alberto Pilatti:PhD in Physical Education by UNICAMP (Brazil). Professor of MSc in Production Engi- neering of UTFPR (Brazil).

Bruno Pedroso MSc in Production Engineering by UTFPR (Brazil). PhD student in Physical Education of UNICAMP (Brazil). Professor of Physical Education undergraduate course of FAFIT-FACIC (Brazil).

Marcus Vinicius Pereira Gonçalves: MsC in Business Administration by UNIVALI (Brazil). Coordinator of Business Administration undergraduate course of FAFIT-FACIC (Brazil).