Authorities should improve road and rail links to Paranagua in southern Brazil as part of the expansion of the port, said Plinio Nastari, head of the Datagro sugar consultancy.

Paranagua port plans a $1.6 billion expansion that will increase its capacity by 55 percent, responding to growing demand for Brazilian foods and goods as No. 1 port Santos bursts at the seams.

"Access by rail to Paranagua is a big problem," Nastari told Reuters late. "The rail (to Paranagua) is old and fragile and needs improvement."

Nastari also said he believed investments were required to widen the road to Paranagua to reduce lineups of trucks to the port.

Paranagua, Brazil's second largest port, is used to export sugar, grains, oilseeds and general cargo. It also imports fertilizer to fuel Brazil's growing agricultural industry.

The railway and highway to No. 2 port had been totally closed for the transport of commodities for a couple of days in March after heavy rains washed out the road and flooded the railway. The port held sufficient stocks at the time, so ships continued to load bulk cargoes such as soybeans and sugar for export. (Reuters)