1. Market Research
  2. > Transportation
  3. > Rail Transportation Market Trends

Strategic Analysis of the Latin American Rail Freight Market 

  • October 2014
  • 116 pages
  • Frost & Sullivan
Report ID: 2432014


Table of Contents

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.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Veronica helps you find the right report:


The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Connected Rail Market by Service, Rail signaling system, Rolling Stock, and Region - Global forecast to 2022

  • $ 5650
  • Industry report
  • June 2017
  • by MarketsandMarkets

“Increasing concerns of safety & security, continuous increasing population, and growing urbanization gives the thrust for connected rail growth” The connected rail market was estimated to be USD ...

Global Connected Rail Market Analysis 2017 - Forecast to 2023

  • $ 3950
  • Industry report
  • August 2017
  • by Hoovers Research

Hoovers Research analysis is one of the most accurate studies performed using the combinational analytical tools. The report contains up to date financial data derived from varied research sources to present ...

Global Connected Rail Market Insights, Opportunity, Analysis, Market Shares And Forecast 2017 – 2023

  • $ 3900
  • Industry report
  • June 2017
  • by Occams

The connected rail helps monetize high bandwidth Internet on a moving train where data and transactions are facilitated via a Wi Fi platform. Connected rails has many advantages such as enabling passengers ...


Reportlinker.com © Copyright 2017. All rights reserved.

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