Road transport infrastructure: a longitudinal case study (2009-2017)

Abstract

This article investigates the economic gains with the reduction of logistic costs after the asphalt pavement of the highway MT 235 for a Brazilian crystal sugar and alcohol industry. Investment in infrastructure is an attribute that increases economic growth and increases the competitiveness of companies. As far as road transport infrastructure is concerned, the problems are not limited to a specific area, but stretches of highways, which link urban transportation and ports to the generation and transmission of electricity, among others. Only 12.2% of Brazilian highways are paved. This work is the result of a longitudinal case study with participant observation, in a time line from 2009 to 2017. It was possible to identify that, after improvements in road transport infrastructure, the asphalt pavement of the highway MT 235 made possible a gain in travel time and a decrease in logistics costs, which led to the closure of the activities of one of the subsidiaries of the company studied, located in Manaus (Amazonas), in 2009. With the benefits of the asphalt pavement of the MT 235, in 2017 we found that sales volume increased 650% in relation to 2011, logistics costs have been significantly reduced in relation to gross revenues, maintaining an average of 11.58%. In 2017, the logistic costs of the company studied were 12.61% versus 20.7% from the group of Brazilian agribusiness companies. The findings show that investments in road transport infrastructure are crucial when it comes to fostering trade and competitiveness of domestic products in international markets, by reducing logistics costs.