Economic and sustainable advantages of railway logistics in Brazil

Abstract

Since the Industrial Revolution railways have been highlighted in long distant transport of passengers and cargo, beside being faster than animals used in transport at that period. Railways underwent several innovations, whilst questions were raised with regard to their use, advantages and disadvantages, giving the impressions that they are advantageous only with regard to costs. Considered to be the slowest when compared to other modes, railways may be underscored for their low maintenance costs during their 5 – 10-year usefulness. In the case of fuel, the railway is competitive and sustainable with regard to different types (diesel or electricity) and to the amount of carbon emission. Brazilian railways are limited to certain regions and actually create a logistic problem to this specific mode, with impacts on its long-term high costs, low investment rate in maintenance and expansion. Current paper aims at highlighting the economic importance and benefits of the railway for Brazilian logistics which go beyond the low costs involved. Methodology comprised qualitative mode and review of the literature by research. Results showed growth in the central-southern regions of Brazil and a reduction in gas emission.