Transport & Logistics
From The Report: Colombia 2013
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Colombia’s transportation network, currently a competitive disadvantage for the country, ranks poorly even by regional standards. Decades of under-investment and security concerns have created significant logistical complications, pushing up the duration and cost of domestic shipments, which has recently been exasperated by the high cost of fuel, particularly diesel. Budget allocations for investment in transport have risen significantly in the past two years as the government carries out major modernisation projects. Heavy investment and the gradual implementation of a Customs reform to streamline shipping processes should see the sector regain some dynamism in the near future.
This chapter includes an interview with Fabio Villegas, CEO, Avianca.

Articles from this Chapter

Overview

The road ahead: Improved connections needed to capitalise on industrial growth
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Growth in Colombia’s transportation sector has traditionally been driven by the nation’s sizeable population and the various industrial centres spread over numerous large and medium-sized cities. In recent times, economic growth and trade liberalisation have added demand for international traffic, providing domestic transporters with an opportunity to develop and modernise their business to global standards. The fundamentals for a thriving transportation sector are in place; however, decades…

Overview

A RENEWED GATEWAY TO THE ATLANTIC:
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It is indisputable that international investors have their eye on the Colombian Pacific coast, due to the enhancement of port infrastructure required by increased trade with Asia and the Pacific coast of the Americas. Indeed, Buenaventura Port, which already handles 60% of the cargo entering or leaving Colombia, is the subject of substantial investments directed to infrastructure improvement as well as the construction of new port terminals and cargo handling equipment. Alongside the significant growth that awaits Pacific port terminals, the Atlantic coast is similarly experiencing a remarkable development process, which can be beneficial…

Analysis

Across the sea: Port activity gets a boost from regional development
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With more than 1000 km of coastline on its northern and western borders, as well as its proximity to the Panama Canal, Colombia enjoys strategic access to key export markets and maritime thoroughfares. Encouraged by domestic economic growth and an increasing number of free trade agreements with key trading partners, a number of ports are seeking to capture an increasing share of global maritime trade. The majority of these ports are located on the Atlantic coast and are operated for both private…

Analysis

A window to the world: Customs reform to streamline shipping processes
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An increase in consumer spending facilitated by the arrival of numerous foreign retailers and a slate of new and upcoming bilateral trade agreements are set to significantly improve Colombia’s foreign trade activity. However, Colombian freight handlers fear a rise in cargo volumes will overburden already pressured physical and institutional infrastructure. A deficient nationwide road network, high fuel costs and limited distribution centres are part of transporters’ daily challenges. CUSTOMS…

Analysis

Jetstream dream: Rising incomes and geography favour air transport growth
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Growth in domestic and international air travel has exceeded that of the national economy in recent years. In 2012, when Colombia’s GDP grew by 4%, the number of airline passengers (measured at the level of airport traffic) grew by 14.5%, reaching 24.7m, according to the Colombian Air Transport Association (Asociación del Transporte Aéreo, ATAC). While much of the credit goes to positive developments at the macroeconomic level, resulting in an increase in consumer spending and business travel,…

Interview

OBG talks to Fabio Villegas, CEO, Avianca
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Interview:Fabio Villegas What are the current growth prospects for the regional aviation industry? VILLEGAS: Latin America’s aviation industry has experienced spectacular growth in the past eight years, which has allowed regional companies to compete internationally in terms of both service and operating efficiency. As a result, two Latin American companies, including Avianca, were among the world’s top five airlines by economic performance in the first quarter of 2013. The decline of…

Analysis

Riding high: Major new mass transit systems planned for urban centres
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Bogotá’s revolutionary bus rapid transit system (BRT), known as Transmilenio, has been copied throughout the region, significantly reducing commuting times, city traffic and carbon dioxide levels in congested cities such as Mexico City, Lima and Sao Paulo. Medellín, Colombia’s second-largest city, has gained international recognition for its efficient metro system and network of cable cars connecting the most deprived neighbourhoods on the outskirts of the Valle de Aburrá to the central…