Will a reputation for endemic corruption hold back Latin America’s logistics market?

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy. For those who are undeterred by reputations, the barriers to doing business in Latin America are not insurmountable.

The region’s biggest enemy remains itself, according to Cathy Roberson lead author of Ti’s latest report ‘Latin America Transport & Logistics 2015’ “In order for Latin America to reach its true potential, it will have to overcome its infrastructure issues once and for all as well as its bureaucratic and corrupt practices”.

The report, a comprehensive overview the region’s logistics markets, asserts that despite the obstacles there remain significant opportunities for growth throughout the continent.  A prolonged period of political instability and economic upheaval has left a large portion of the continent lacking the vital infrastructure needed. Despite this, recent high profile examples of infrastructure such as the soccer World Cup and upcoming Rio Olympics have shown investment is happening and on a huge scale.

• Cold chain needs are increasing thanks in most part to a rise in agricultural exports as Colombia emerges as the largest global exporter of flowers.
• The widening of the Panama Canal brings with it opportunities for Panama as well as surrounding countries. For example, Colombia has invested in its ports and airports in anticipation of transhipment opportunities from the canal.
• Mexico continues to benefit from NAFTA and has overtaken Brazil as the region’s top automobile producer.
• Argentina’s Tierra del Fuego region continues to grow as a high tech manufacturing centre despite it being over 3,000km from Buenos Aires.
• Despite a historic reliance on trade with North America, trade with emerging markets in Asia, Africa and the Middle East is on the rise.

Find out more about Latin America Transport & Logistics 2015: http://www.transportintelligence.com/r.php?linkID=1040