Paranapanema, a refined copper producer in Brazil, is switching its domestic shipments from trucks to ocean freighters after 15 of its truck loads were hijacked in 2012, according to Edson Monteiro, the company’s interim CEO, Bloomberg Businessweek reports.
The company is currently transporting 65 percent of its domestic deliveries of products, such copper plates and rods, by ship, and plans to move 80 percent by water by the end of this year. Last year, it sent nothing by sea.
“There are a lot of trucks stolen, a lot of violence — we invest a lot in security,” Monteiro said in an interview with a Businessweek reporter. “Nothing has been done in the past 10 years to improve transportation by roads. Brazil is very weak on this issue.”
As a result, Paranapanema is willing to risk port bottlenecks and triple transport times to avoid Brazil’s highway network.
For additional cost savings, Paranapanema is also considering moving its Rio de Janeiro distribution center closer to the port, Monteiro said.