DUBLIN--(BUSINESS WIRE)--The "Chile Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
Chile has one of the most stable and free-market economies in Latin America. Although logistics in Chile is still on a path to development, import, and export operations from the country have increased in the last few years.
The country's perfect geographic location offers great potential to countries like Europe, Asia and South, and Central America to connect by air, sea, or land.
The country has also been investing heavily in infrastructural improvement in the country. The Chilean government recently invested in the new railway investment program in 2020, and also launched a USD 7 billion road infrastructure plan in 2019 to build nearly 17,000km of roads across the country as well as USD 2.4 billion economic stimulus agenda in June 2019 to accelerate public works and revive the country's economy.
E-commerce is also witnessing growth in Chile and is expected to expand from the current rate of 10% annual rate from 2017-2020 and reach EUR 2.5 billion by 2020. This is also providing great opportunities for logistics operators to offer e-commerce logistics services to brands, marketplaces, and e-tailers to optimizes and incorporates fulfillment and distribution.
Key Market TrendsRising Investments in Railway Network Expansion in Chile
Chile ranked 70th out of 103 for the quality of its railroad infrastructure in 2019 as per the World Economic Forum's Global Competitiveness Report and the county also reached 61st position for the efficiency of its train services.
In order to foster the development of a comprehensive logistics network in the country, expansion of ports in Chile require enhanced railway connections to connect the ports with the main manufacturing, production, and consumption centers, which lie inland in the country.
The Chilean Government has invested nearly USD 5 billion in 2020 in one of the largest railway development plans in the country named "Chile on Rails" which is aimed at doubling rail freight volumes to over 21 million tons a year by 2027 and triple the passenger numbers. The project will include 27 infrastructure and security projects in order to boost passenger and cargo services throughout the country and its completion is expected by 2027.
According to the Ministry of Transport, financing for these projects has already been secured, with 44% of total funding being directed to projects in the Santiago region while the remaining 56% will be directed to projects in regions outside Santiago. Among the most important projects are the Santiago-Melipilla Melitren railway the Santiago-Batuco-Tiltil commuter rail line; and the Merval Quillota-La Calera extension.
Growing Air Cargo Transport in the Country
The air transport sector makes a major contribution to the Chilean economy. The tons of air cargo transported per kilometer fell by nearly 3.3% in 2019 compared to 2018, while the capacity, measured in tons of cargo per kilometer available increased by 2.1% in 2019. However, in 2020 the exports witnessed an increase and it was reported that in January 2020 nearly 36,238 tons of cargo were transported on national and international flights, registering growth on nearly 12.7% compared to the same period in 2019.
There is an increase in exports for fruits like red cherries from Chile to other countries like China which is providing increased opportunities to air cargo providers to enhance their offerings suitable for perishable cargo needs. China accounted for nearly 90% of the Chilean cherry exports in 2019 with exports reaching nearly 210,000 tons in the 4th quarter of 2019.
The Chile Freight and Logistics market is competitive and fragmented with the presence of many local as well as international players. The country is considered to have great potential for both European and Spanish logistics providers and there are multiple benefits for other countries to develop their business operations in Chile as well.
- Agility Logistics
- Agunsa Logistics
- Alfa Logistics
- Andes Logistics de Chile
- Bertling Logistics S.A
- Bollore Logistics Chile S.A
- Ceva Logistics
- CH Robinson Worldwide Chile
- Coexco Chile
- DB Schenker Chile
- DSV Air and Sea S.A
- EIT Logistica S.A
- EuroTrans Chile
- Taylor Logistics Chile
- TNT Express (Chile)
- Vanguard Logistics Chile
Key Topics Covered:
MARKET DYNAMICS & INSIGHTS
- Market Overview
- Market Drivers
- Market Restraints
- Industry Value Chain Analysis
- Porters 5 Force Analysis
- Insights on Technological Trends in the Market
- Insights on Ecommerce Industry
- Government Regulations and Initiatives
- Brief on Freight Rates
- Impact of COVID 19 on the market
MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/3nlurt