Market Trends of Colombia Road Freight Transport Industry
This section covers the major market trends shaping the Colombia Road Freight Transport Market according to our research experts:
Rising Investment in the Transport and Logistics Sector
Colombia has made considerable progress in expanding its air and seaport capacity, and the country's ambitious road construction plans seem to be back on track after a series of delays. Also, the government is trying to reform the legal framework of the industry to better promote private investment, while the municipality is committed to improving urban and rural mobility. Nevertheless, Colombia's gradual integration into the international economy and the development of mature global value chains have put pressure on the country's transportation system. Insufficient historical investment levels, coupled with increasing demand from companies and consumers and difficult geographic conditions in the country, have resulted in a huge infrastructure gap. The purpose of the government is to close the gap and promote economic growth. According to data from the Ministry of Transport (MoT), the transportation of goods within the country is mainly carried by roads. Although the investment in road freight transport and logistics is increasing, the investment in each field is not consistent.
Colombia Exports Remain Flat in February and Imports Fell by 11.7% Y-o-Y in January 2021
After a 24.1% decline in the previous month, exports from Colombia in February 2021 remained the same at USD 2.94 billion. Despite this, some significant annual variations were recorded in the sales of manufactured goods (14.4 %), chemical products (9.8 %), agricultural goods, food and beverages (8 %), unroasted coffee (7.5 %), and beef (1.0 %). In February 2021, Colombia sold 11.1 million barrels of crude oil, a decrease of 39.2% from the same period last year. During this period, the most important export partners were the United States (31.2% of total sales), China (10.0%), Brazil (5.8%), and India (4.4%). By the end of the year, Colombia's exports are expected to reach USD 2.70 billion. From a long-term perspective, Colombia's exports are expected to reach approximately USD 340 million by 2022 and USD 380 million by 2023.
In January 2021, imports to Colombia fell by 11.7% year-on-year to USD 3.88 billion, after an increase of 1.6% in the previous month due to a rebound in the number of infected people worldwide. In all commodity categories headed by agricultural products, purchases decreased (-12.4%), followed by manufactured goods (-11.8%) and finally fuels and mining products (-10.6%). The largest import partners are the United States (26.7% of total imports), China (24.7%), Mexico (5.7%), and Brazil (4.9%). Colombia's industrial confidence index rose by 4.5 points from the previous month to 8.2 in February 2021, which is the highest level since the pandemic began a year ago, and all three components have achieved favorable growth. The current order volume has increased by 9.4 points (-10.9 in January and -20.9 in January), inventory levels have increased by 2.1 points (-0.4 compared to -2.5).
