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Transportation and Logistics Market Insights-Argentina

Transportation and Logistics Market Insights-Argentina

  • October 2017
  • 49 pages
  • ID: 5219378
  • Format: PDF
  • Frost & Sullivan

Summary

Table of Contents

Infrastructure Development, Transportation Connectivity, and New Business Models in Warehousing will Improve Efficiency in the Logistics Industry

Argentina´s economic growth is primarily driven by the new government’s open economic policies that include fresh trade agreements with several European, Asian, and other G20 nations, which aim to attract FDI by establishing economic, legal, and political framework certainties and benefits.

In the same vein, new taxation reforms that eliminate or drastically reduce farm and metal ore export taxes on key commodity grains and metal ores are pushing an export revamp in terms of agriculture and mining activities . All this will favor the transportation and storage sector in the short term. Long-term factors contributing to the enrichment of Argentina’s economy are government investments in infrastructure, including Plan Transporte 2016-2019 and Plan Belgrano, which involve major investments to upgrade road and rail networks and seaport and airport infrastructure.

Recognizing the vital role of logistics in the economy is also a key focus. The main challenges for the logistics and transportation sector include the lack of skilled drivers and the rising labor and fuel costs. The major companies focus on the implementation of new track and trace technologies for freight and also on increasing railroad and maritime freight participation, which currently represents less than 10% of the total freight movement.

Digitization will be a key factor driving the transportation sector in the long term, with domestic startups being developed, such as Uber for Tucks (Humber, for example) as well as OEM FTS embedded services that go beyond geotracking and telemetrics to a more developed telematics service that includes a complete analysis of the unit, driver conduct, preventive maintenance, and fuel saving. The trend of outsourcing supply chain management and warehousing services to logistics companies to be able to efficiently meet customer demands and focus on the core business is also on the rise.

The digital management of transport documents, the use of mobile applications in the logistics sector, and new warehousing built-to-suit business models to secure investments are being gradually introduced and will become key transformational trends in Argentina

Scope
The aim of this study is to research and analyze the economic and trade indicators and the transportation and freight and logistics and warehousing sectors in Argentina.

Objectives:
• To provide an overview of the key factors driving Argentina’s economy and trade
• To offer an overview of the GDP growth trends and the country’s external trade and account balance
• To analyze the role of the transport and logistics sector in driving the economy
• To identify the initiatives undertaken by the government to improve efficiency and reduce logistics cost
• To furnish a detailed analysis of the advancement in digital technologies
• To provide an in-depth analysis of how the traditional value chain is being transformed as a result of advancements in technology, e-Commerce growth, regulatory changes, and investment
• To identify emerging opportunities as a result of economic and technology transformations and how they are expected to change the competitive environment

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