COLOMBIA FREIGHT AND LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

COLOMBIA FREIGHT AND LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Colombia freight and logistics market is expected to witness a CAGR of 8.55% during the forecasted period of 2020-2025. The market is driven by increasing exports in the agricultural sector. Colombia has seen improving logistics performance in recent years and is ranked the 5th country in Latin America and the Carribean region. The government is taking efforts to improve the logistics infrastructure which is fragmented.

Key Highlights

• In a country with 49.7 million inhabitan

  The Colombia freight and logistics market is expected to witness a CAGR of 8.55% during the forecasted period, 2020-2025. The market is driven by increasing exports in the agricultural sector. Colombia has seen improving logistics performance in recent years and is ranked the 5th country in terms of logistics, among Latin American and Caribbean countries. The government is taking efforts to improve the logistics infrastructure which is fragmented.

• In a country with 49.7 million inhabitants (as of January 2019), around 34 million are internet users. This represents a 68% penetration. The higher internet usage has resulted in the revenue sales of USD 6 billion in the Colombian e-commerce sector in 2018. Ecommerce growth is expected to further increase the demand for logistics services.
• ts (as of January 2019), around 34 million are internet users – this fact represents a 68% penetration. The higher internet usage has resulted in the revenues sales of USD 6 billion in the Colombian e-commerce sector in 2018. Ecommerce growth is expected to further increase the demand for logistics services.

Key Market TrendsRising Exports are Boosting the Demands for Cold Chain Logistics in Colombia

Colombia is becoming a world-leading exporter of fruits, coffee and has a strong and growing domestic demand for fruit and vegetables. According to the FAO, in terms of numbers of cultivated hectares of fruit, Colombia is third in Latin America, after Brazil and Mexico, with 921,000 hectare, which represents around 12% of the country`s arable land. However, in terms of production, it is ranked fifth. While bananas and flowers have always been a driver of exports, fresh fruit is seen as the key to growth in the coming years, given the ever-increasing exports in the segment.

One important driver of the country’s agricultural cold chain logistics development has been the fresh cut flower export industry. Colombia is positioned as one of the biggest exporters in this sector. The Colombian flower industry has created a strong strategic sector with a growing cold chain, working from harvest areas to transport terminals. With the agriculture sector seeking ways to boost production and increase output, many eyes are on Colombia’s fruit sector, which has the potential to deliver big returns. As a result, the growth of agricultural exports is boosting the cold chain logistics in Colombia.

Performance Improvement of Colombia Logistics

Colombia stood at the 58th position among 151 economies, evaluated for the logistics performance index published every two years by the World Bank.

In the ranking among Latin American and Caribbean countries, the country entered the top five after Chile, Panama, Mexico, and Brazil, amongst 16 economies. From the analysis, it is noticeable that in only two years, the country raised 36 positions in the table, from position 94.

The improvement in infrastructure (which went from position 129 to 72, between 2016 and 2018) was due to the advances that have been made in road transport, and improvements in ports, which leads to a positive impact on the indicator. Additionally, the country has made progress in trade facilitation, with the gradual implementation of the customs statute, as well as the steps that have been taken for non-intrusive inspection. Overall, the country has shown good results in the logistics performance index of 2018, and this is a factor that is expected to boost the market sentiment and competitive activity, apart from the improving government expenditure in the logistics sector.

Competitive Landscape

The Colombian freight and logistics market is expected to be fragmented with the presence of the local and international players in the market. The market sees growing competition in the e-commerce logistics segment. It is expected that the growth of agricultural exports internationally and in the domestic market is attracting many international players in the warehousing and storage segment as well.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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