Third Party Logistics (3PL) in Colombia Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Third Party Logistics (3PL) in Colombia Market Analysis
The Colombia third-party logistics (3PL) market is estimated to register a CAGR of greater than 3% during the forecast period (2023-2028).
- Logistics firms involved in the movement, storage, and flow of goods had been directly affected by the COVID-19 pandemic. Like the tendency of freight trips by road, freight volumes transported by air diminished during the pandemic (i.e., March and April 2020) in comparison to the volumes observed in the same months in 2019. Overall, the amount of air cargo decreased in all cities. Bucaramanga, Barranquilla, and Pereira reported minimal movement of air cargo during March 2020, while Bogotá, Medellín, Cali, and Cartagena presented reductions between 40% and 70% in March 2020. Cargo volumes transported by trucks during the mandatory quarantine also exhibited a decrease, mainly explained by lower transport flows of non-essential goods.
- Colombia is home to an exciting domestic economy, focusing on international markets and foreign trade. Open, transparent, and ready-to-trade are the three cornerstones of the Colombian economy. For Colombia's trade worldwide, the EIU estimated that merchandise exports from Colombia amounted to USD 42.7 billion in 2021, a rebound from USD 32.3 billion in 2020. Merchandise imports totaled USD 56.7 billion in 2021, compared with imports of USD 41.2 billion in 2020. This rise in trade adds to the growth of 3PL market. Additionally, Colombias strategic geographical location offers great advantages for logistics services, which lowers costs and reduces the time of deliveries. Colombia is regionally the major focal point for overall logistics activity among the rest of South American countries. The high production of both agricultural products and oil, gas, and petroleum products is expected to drive the logistics activity in these countries. Project logistics grows in the region due to the increasing construction of oil and gas projects and government initiatives to improve the countries' infrastructure.
- The price of Colombia's leading exports, oil and gas saw sharp increases in the first half of 2022. Oil production saw a high of one million barrels per day in 2015 but has declined to about 740,000 barrels a day in 2022. Despite this decline, the energy sector has been an important source of revenue. According to the EIU, the rising price of oil in 2021 increased export values by 52%, or USD 13.3 billion, and represented a third of total exports. According to the Colombia Oil Association (COA), oil and gas investments grew by 51% in 2021, to USD 3.1 billion, of which USD 520 million went to exploration and USD 2.6 billion went to production. COA estimated that investments in the domestic oil and gas sector will grow another 42% in 2022, to USD 4.4 billion, of which USD 1.13 billion will go to new exploratory wells to find natural gas reserves in the Caribbean Sea. Though data has not yet been released. Additionally, regional SMEs, along with companies like Amazon and eBay are propelling e-commerce growth in the region. Road freight transport is the dominant mode of transportation in these countries. The logistics landscape in the region is becoming more competitive, with international players expanding into the region with strategies, such as acquiring local companies.
Third Party Logistics (3PL) in Colombia Market Trends
This section covers the major market trends shaping the Colombia 3PL Market according to our research experts:
Colombia Third-party Logistics (3PL) Market Trends
After the signing of the Peace Agreement between the Colombian Government and the Revolutionary Armed Forces of Colombia (FARC) in 2016, infrastructure development became a priority for Colombia. In 2015, the Santos Administration established an infrastructure initiative to connect Colombia through multimodal transportation projects, commonly referred to as the Intermodal Transportation Master Plan (PMTI). This initiative encompasses 101 road projects, 52 highway projects, 5 railway projects, 8 fluvial projects, 31 airport projects, and various dredging projects. In 2016, the value established for this ambitious initiative was COP 10.4 trillion (USD 2.7 billion) equivalent to 1.3% of Colombia's GDP. The Plan is divided into two major programs named fourth-generation infrastructure projects (4G) and fifth-generation infrastructure projects (5G). 4G Infrastructure projects aim to develop the country's connectivity and promote economic development by connecting industrial regions with the port's areas. They encompass 29 road projects to construct 4,970 miles of dual carriageways, repair 4.349 miles of roads, and construct 141 tunnels and 1,300 viaducts. Prior to August 2022, 20 projects were completed and the remaining 9 will be developed. According to the Colombian Transportation Ministry, these highway projects are valued at COP 47 billion (USD 12 million).
The mentioned 5G Infrastructure initiative included seven road projects, four airport projects, two river projects, and one railway project. By May 2022, three 5G road Infrastructure projects have been awarded including Valle del Cauca Road, ALO sur, and Accesos Norte II, while four projects are in the tender process, including the second most important river project in Colombia, the Canal del Dique PPP. Colombia's 2021 transportation budget was COP 12 trillion (USD 3.1 billion). According to Colombia's Infrastructure Chamber of Commerce, this budget may increase to COP 15 trillion (USD 3.9 billion) in 2023. In November 2020, the Railway Master Plan for Colombia was launched. It aimed to improve and develop cargo and passenger railway lines. The Plan set a goal to reduce 26% of the country's logistics costs to improve productivity and reduce environmental pollution. The greater Bogota and Medellin areas plan to have railway developments in the coming years. Bogota aims to foster the Cundinamarca region by connecting the city and rural surrounding areas with metro lines and commuter trains. Cartagena's new airport initiative is currently under the feasibility stage, once National Infrastructure Agency (ANI) approves it, the project will be developed. It will have the capability for 8 million passengers per year and will manage 35 flight operations per hour. This continuous transportation infrastructure investment in Colombia will support the 3PL market growth in the coming years.
eCommerce Driving the Growth of the Market
The eCommerce world has soared in 2021 and 2022 due to the confinement that the whole planet had to endure due to the arrival of COVID-19. In Latin America, there was also a significant advance in the technological world, with Colombia being one of the countries that decided to adopt these practices. Colombia ranked fourth in 2020 as the largest e-commerce market in Latin America in online sales revenue, after Brazil, Mexico, and Argentina. According to the Colombian Chamber of Electronic Commerce (CCCE), Colombian eCommerce reached sales worth 10,000 million dollars in 2021, representing a growth of 40.2% compared to 2020. Factors driving growth, particularly in the B2C segment, include greater accessibility to web services through smartphones and increased online services, especially banking and online payment services. Business to Business (B2B) eCommerce in Colombia is becoming more common. Linio, Mercado Libre, and Dafiti, are the strongest players in e-commerce in the Colombian market. The Colombian Chamber of Electronic Commerce (CCCE) expects that in 2022 Colombian eCommerce increased by 15% compared to 2021. Thus, during the first quarter of 2022, total online sales in Colombia equivalent to 3,000 million dollars were reached.
The eCommerce growth in Colombia is also driven by government support. In December 2020, the National Council for Economic and Social Policy (CONPES) approved the National Policy for Electronic Commerce. This strategy seeks to promote eCommerce in companies and the general public to increase social and economic value generation. According to estimates by an industry association, the e-commerce market in Colombia could increase in the coming years, showing a growth rate of 11% considering that at least 40% of the Colombian population has made at least one purchase online.With this tremendous growth of eCommerce in Colombia, the demand for 3PL services in the market will also increase. There are already many 3PL providers operating in the market. According to a study, Coordinadora is considered the main provider of delivery services for Colombia's eCommerce. In fact, 29% of the digital stores consulted said that Coordinadora is their shipping management provider; they are followed by Servientrega with 23% and Envía with 10%. Only Coordinadora has a reach of over 1,200 national destinations as well as international shipping. In the case of Servientrega, it is a company that has managed to expand not only throughout Latin America but also to the United States; while Envía focuses more on national territory with a reach of 1,013 municipalities and 386 populated centers.
Third Party Logistics (3PL) in Colombia Industry Overview
The market studied is competitive and fairly fragmented, with a presence of local as well as global players, such as Kuehne + Nagel, Servientrega SA, Deutsche Post DHL, Blu Logistics Colombia SAS, and Icoltrans. The trend toward outsourcing logistics services is significant. Moreover, it may continue to increase, even though it is imperative to recognize that the percentage of logistics outsourcing in Colombia continues to be low compared to the proportions handled in Europe and North America. In this sense, leaders in this business are working hard to seek to streamline the process.
Third Party Logistics (3PL) in Colombia Market Leaders
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DHL
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Kuehne + Nagel
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Servientrega SA
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Blu Logistics Colombia SAS
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Icoltrans
*Disclaimer: Major Players sorted in no particular order
Third Party Logistics (3PL) in Colombia Market News
- December 2022: CEVA Logistics opened a new multi-client, 15,000-square-meter warehouse in Bogota, Colombia, allowing the company to better serve the strategic growth needs of its customers in South and Latin America. The new facility is the first carbon-neutral CEVA warehouse in the country and consolidates the operations of three other former sites in Colombia, while also adding space for new customers. The Bogota facility will serve existing technology, industrial and automotive clients, who have shifted from other CEVA operations in Colombia. The new warehouse also serves several new customers, including a new automaker, whose spare parts operation will occupy roughly one-third of the total space. In addition to its sustainability measures, the Bogota warehouse will employ advanced security measures, as well as leading-edge software, workflow, and picking and sorting technologies. The facility also positions CEVA for future growth in a thriving region.
- December 2022: Leschaco (Lexzau, Scharbau GmbH & Co. KG) announced the acquisition of the activities of the Colombian logistics service provider Coltrans S.A.S. as of December 28, 2022. For more than 30 years, Coltrans has been part of the Leschaco Group's agent network. Grupo Empresarial Coltrans S.A.S. started its operations in 1988 and is today one of the leading local logistics companies in the Colombian market. The entry into the Colombian market and the acquisition of the Coltrans product portfolio are excellent strategic addition to Leschaco's existing global network. With the new locations in Colombia, Leschaco is now represented in 24 countries. Services in the core business areas of sea and air freight, tank containers, and contract logistics are offered at all locations. A variety of value-added services and multimodal transports round off the product portfolio.
Third Party Logistics (3PL) in Colombia Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Current Market Scenario
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Market Opportunities
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Bargaining Power of Buyers/Consumers
- 4.5.2 Bargaining Power of Suppliers
- 4.5.3 Threat of New Entrants
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Brief on Key Logistics Hubs in Colombia
- 4.7 Insights on E-Commerce Fulfillment and Last-mile Delivery Market
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Service
- 5.1.1 Domestic Transportation Management
- 5.1.2 International Transportation Management
- 5.1.3 Value-added Warehousing and Distribution
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5.2 By End User
- 5.2.1 Automotive
- 5.2.2 FMCG (Fast-moving Consumer Goods) - (Includes Beauty and Personal Care, Soft Drinks, Home Care, etc.)
- 5.2.3 Retail (Hypermarket, Supermarket, Convenience Stores, and E-commerce)
- 5.2.4 Fashion and Lifestyle (Apparel and Footwear)
- 5.2.5 Technology (Consumer Electronics and Home Appliances)
- 5.2.6 Reefer (Fruits, Vegetable, Pharma, Meat, Fish, and Seafood)
- 5.2.7 Other End Users
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Kuehne + Nagel
- 6.2.2 Servientrega SA
- 6.2.3 DHL
- 6.2.4 Blu Logistics Colombia SAS
- 6.2.5 Icoltrans
- 6.2.6 Coordinadora Mercantil SA
- 6.2.7 TCC SAS
- 6.2.8 Saferbo
- 6.2.9 Almaviva
- 6.2.10 EGA - KAT*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
- 8.1 List of Prospective Clients (Top Players in Each End-use Sector)
Third Party Logistics (3PL) in Colombia Industry Segmentation
A 3PL (third-party logistics) provider offers outsourced logistics services, which encompass anything that involves managing one or more facets of procurement and fulfillment activities. 3PL has a broad meaning that applies to any service contract that involves storing or shipping items in the business. A 3PL service may be a single provider, such as transportation or warehouse storage, or it can be a systemwide bundle of services capable of handling supply chain management.
The Colombia 3PL market has been segmented by Service (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution) and End User (Automotive, FMCG, Retail, Fashion and Lifestyle, Technology, Reefer, and Other End Users). The report offers market size and forecast for Colombia 3PL industry in value (USD billion) for all the above segments.
| By Service | Domestic Transportation Management |
| International Transportation Management | |
| Value-added Warehousing and Distribution | |
| By End User | Automotive |
| FMCG (Fast-moving Consumer Goods) - (Includes Beauty and Personal Care, Soft Drinks, Home Care, etc.) | |
| Retail (Hypermarket, Supermarket, Convenience Stores, and E-commerce) | |
| Fashion and Lifestyle (Apparel and Footwear) | |
| Technology (Consumer Electronics and Home Appliances) | |
| Reefer (Fruits, Vegetable, Pharma, Meat, Fish, and Seafood) | |
| Other End Users |
Third Party Logistics (3PL) in Colombia Market Research FAQs
What is the current Colombia Third-party Logistics (3PL) Market size?
The Colombia Third-party Logistics (3PL) Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Colombia Third-party Logistics (3PL) Market?
DHL, Kuehne + Nagel, Servientrega SA, Blu Logistics Colombia SAS and Icoltrans are the major companies operating in the Colombia Third-party Logistics (3PL) Market.
What years does this Colombia Third-party Logistics (3PL) Market cover?
The report covers the Colombia Third-party Logistics (3PL) Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Colombia Third-party Logistics (3PL) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
3PL in Colombia Industry Report
Statistics for the 2024 3PL in Colombia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 3PL in Colombia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
