BMI maintains its cautious outlook for the Argentine freight transport sector. The country enjoys a good commodities mix, but it continues to struggle with external headwinds as well as internal difficulties in the form of rising inflation and ongoing labour unrest. We expect growth to reach 2.9% in 2014. We caution that the country will continue to struggle with spiralling inflation, sluggish private consumption, and a net rag on exports.
We acknowledge that there are some risks remain to the upside, as an improving business environment and more moderate economic policies could lead to a surge in inbound investment into the country's oil and gas sector. Nevertheless, we caution that on top of its internal economic difficulties, the country is struggling with a considerable infrastructure deficit. Investment is needed across the board if the country's rail freight system is to handle increasing volumes in the coming years.
Headline Industry Data
Total volume at the Port of Buenos Aires is set to increase by 2.6% in 2014 to reach 11.5mn tonnes.
Air freight volume is set to grow by 5.1% to 242.4mn tonnes-km in 2014, with average annual growth 6.8% during our forecast period.
Rail freight hauled in 2014 will grow by a modest 2.1% to 23.6mn tonnes, with average annual growth of 2.9% during our forecast period.
Key Industry Trends
Mendoza Aiming For Logistics Hub Role
Argentina's western province of Mendoza, which borders Chile and offers freight transport links to Chilean ports, is transforming itself into a logistics hub - part of a wider trend of Argentine investment into the country's freight transport network. Mendoza's plans to upgrade an existing rail line that will link up with the port of Buenos Aires will complete the link between South America's Pacific and Atlantic Coasts, providing upside risk to throughput traffic at ports in both Chile and Argentina.
Government Signs US$2.47bn Financing Deal With CMEC
Argentine Interior and Transport...
The Argentina Freight Transport Report has been researched at source, and features latest-available data covering commercial transport and logistics by road, rail, air and water; industry forecasts, company rankings covering leading national and multinational operators; and analysis of latest industry trends, opportunities, projects and regulatory changes.
Business Monitor International (BMI)'s Argentina Freight Transport Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Argentinian freight transport and logistics industry.
- Benchmark BMI's independent freight transport industry forecasts on Argentina to test other views - a key input for successful budgetary and planning in the strategic freight transport market.
- Target business opportunities and risks in the Argentinian freight transport sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Argentina.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs, and latest activity).
Summary of BMI's key industry forecasts, views and trend analysis covering freight transport and logistics, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the freight sector and within the broader political, economic and business environment.
Industry Trends And Developments
Analysis of latest projects across the freight transport sector (road, rail, air, sea and logistics) including market overview which provides an outline of the key elements driving development.
BMI Industry Forecasts
Historic data series and forecasts to end-2017 for all key industry and macroeconomic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
Transport Sector: Sector Value (US$bn); sector real growth (%); employment (`000); total freight carried by road, rail, inland waterways, maritime, air and pipeline (mn tonnes-km/mn tonnes)
Trade: Exports and imports (US$mn) by category of goods (manufactured goods, food, chemicals etc.); top-5 import and export trade partners (US$mn); imports/exports to each global region (US$mn)
Port Data: Throughput (`000 tonnes) and container throughput (TEU) for all major ports in the state
Oil Products Prices: Price forecasts for gasoline and aviation fuel (US$/bbl) at all major global energy trading hubs
Economic Indicators: Nominal GDP (US$bn); real GDP growth (%); GDP per capita (US$); industrial production (%); unemployment (%)
Details of the freight infrastructure in each state by segment (road, rail, air, water and pipelines). Full analysis of the competitive landscape within each segment.
The freight reports contain a chapter detailing the political outlook of a given region, examining the domestic politics, long-term outlook and foreign policy, and assessing the impact this could have on freight and transport businesses.
Examines the short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT (Strengths, Weaknesses, Opportunities and Threats) analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.