Brazil logistics sector seeks new concession rules amid high GDP costs

Brazil's logistics sector is facing significant economic pressure, with total logistics costs currently accounting for approximately 15.5% of the nation's GDP. Freight transport alone represents between 9% and 13% of the GDP, according to data from the Institute of Logistics and Supply Chain (Ilos).

Industry representatives are advocating for legislative changes to address infrastructure challenges. Specifically, there is support for Bill No. 2373/2025, which aims to update rules for concessions and public-private partnerships (PPPs) to provide greater legal security and predictability for contracts. Senator Wellington Fagundes, president of FRENLOGI, noted that while Brazil has a successful history of private road management, legal refinements are necessary to stimulate new investments.

The heavy reliance on road transport—which handles between 62% and 86% of the country's cargo—exposes the economy to high costs due to poor road maintenance and diesel price volatility. Diesel accounts for an average of 35% of operational costs for road transport companies, impacting competitiveness and profit margins.