According to new analysis from Frost & Sullivan, Strategic Analysis of the Latin American Rail Freight Market, that covers rolling stock and rail infrastructure, expects the market to receive over USD 47 billion in rail freight transportation investments by 2020. Concerning the private funding, foreign participants have begun entering joint ventures to minimize the risk of investment and penetrate the previously-stagnant rail freight transport market. In fact, by 2020, China is expected to account for a significant portion of the foreign presence in the LATAM rail freight market.
Strong economic growth in LATAM (Latin America) supports increasing investments in infrastructure and equipment to develop rail freight communication and logistics systems. The gross domestic product of Argentina, Brazil, Colombia, Chile and Peru have grown at 5.2 percent over the last five years and is expected to rise at above 3 percent in the forthcoming years.
“With the average age of LATAM’s locomotive fleet at more than 40 years old and a few models in active service for over 50 years, rail companies have little option but to purchase new locomotives or refurbish old models to improve fleet availability and assurance of motive power,” said Frost & Sullivan Automotive & Transportation Research Analyst Shyam Raman. “These trends will help rail companies cope with the intensifying freight transport needs of the metal and mining and agriculture industries.”
photo:www.mexicoxport.com
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