1. Market Research
  2. > Transportation
  3. > Railway Transport Market Trends
  4. > Strategic Analysis of the Latin American Rail Freight Market 

Strategic Analysis of the Latin American Rail Freight Market 

  • October 2014
  • -
  • Frost & Sullivan
  • -
  • 116 pages

Increasing Freight Demands are Driving Market Growth

Key Findings

- 2013 and 2020, LATAM will possess approximately $ xbillion in terms of opportunity for rail infrastructure development projects, with up to x% of investment directed toward the construction of new lines, extensions, and the upgrading of existing infrastructure.
- A severe shortage of investment in fleets is causing a bottleneck; consequently, freight volumes have suffered in Chile, Colombia, and Peru.
Approximately xlocomotives are in active service, However, more than x% of all locomotives in the region have seen over x years of active service. As units reach the end of their life, the trend for refurbishment is expected to decrease significantly over the next decade.
- Overall growth in the rail sector is driven by factors such as private funding, rising freight volumes, and political stability.
- Mining-related investments of more than $ x billion are projected to boost rail revenue as rail operations are expected to meet metal and mining transport demands. Traffic from mining accounts for most of the total freight transported by rail in Brazil, Colombia, and Peru.
- LATAM is highly receptive toward foreign investment in the rail market. Changes in regulations are positioned toward promoting foreign investments through public-private partnerships.

- In the 1990s, rail freight recovery in LATAM was slow. It is recovering now, strongly bolstered by the privatization of the railways. Generally, the state is the owner of infrastructure and rolling stock; private companies are responsible for operation, maintenance, and investments.
- As the initial surge associated with new infrastructure translates into increased rail traffic volumes, Brazil is expected to be the fastest-growing rail market in LATAM.

- Brazil holds the longest track network by length; however, electrification is lower than x%.
- Although electrification is not a priority in LATAM, it will be one of the fastest-growing regions of electrified track by 2020 (along with Asia).
- As old tracks are abandoned in LATAM, the percentage of electrification will gradually increase in future.

Key Findings and Future Outlook

Market Outlook (2013)

This is a large market with a lot of potential for expansion. There has been a steady increase in rail freight volumes.
Due to the concessionaires model, competition is fierce among rail operators. The rail supply market is also heavily concentrated between x or 3 primary participants.
There have be no significant advancements in technology over the last x decades. Investments have been driven with the purpose of maintaining operations.
Local manufacturers are the preferred means of procurement.
The existing regulations are biased toward a closed market.

Future Outlook (2020)

Increased investments, the retirement of aged fleets, foreign investments, and ownership of infrastructure and fleets are expected to increase rail traffic volumes.
Aggressive competition among existing market participants and new foreign participants is anticipated.
A strong push for sustainability and profitability is expected to see the rapid uptake of asset monitoring technologies. Signalling systems and rolling stock are expected to be upgraded.
Foreign investments, either direct or through joint ventures and local production, will allow for entry opportunities for global participants.

Table Of Contents

Strategic Analysis of the Latin American Rail Freight Market 
Executive Summary 4
Research Scope, Objectives, Background, and Methodology 11
Definitions and Segmentation 18
Introduction to the LATAM Rail Freight Market 21
Mega Trends and Industry Convergence Implications 33
Drivers and Restraints—Rail Freight Market 37
Total LATAM Rail Freight Market 42
Case Study: Refurbished Locomotives Sold from the United States to Brazil 51
Argentina Breakdown 55
Brazil Breakdown 64
Chile Breakdown 72
Colombia Breakdown 81
Mexico Breakdown 88
Peru Breakdown 95
Conclusions and Future Outlook 101
Appendix 105
The Frost and Sullivan Story 109

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
Smart Railways Market by Solution, Component, Service, and Region - Global Forecast to 2021

Smart Railways Market by Solution, Component, Service, and Region - Global Forecast to 2021

  • $ 7150
  • Industry report
  • November 2016
  • by MarketsandMarkets

“Increasing trends of smart cities is the major factor expected to drive the growth of the smart railways market” The smart railways market size is estimated to be USD 10.50 billion in 2016 and is ...

Changing Business Strategies in Rail

Changing Business Strategies in Rail

  • $ 4950
  • Industry report
  • August 2016
  • by Frost & Sullivan

Transformational Shifts in Vehicle Automation and Digitalization to Shape the Future of the Rail Market This study analyzes the nature and the development of various business models and solutions launched ...

Project Insight - Road and Rail Construction Projects in the Middle East and Africa

Project Insight - Road and Rail Construction Projects in the Middle East and Africa

  • $ 3950
  • Industry report
  • September 2016
  • by Timetric

Synopsis The report provides detailed market analysis, information and insights based on over 300 CIC projects in the Middle East and Africa. The report provides detailed metrics on the region's road and ...


Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.