Panama Freight Transport and Shipping Report Q4 2017
Panama's freight sector is set to post very strong growth in the short-to-medium term. Growthwill be driven by strong domestic macroeconomic fundamentals and by sustained infrastructureinvestments. Private and public spending will provide further support for freight growth. The PanamaCanal make Panama one of the unique logistics hubs globally and maintains its relevance in global trade.
Strong household spending power will ensure ongoing growth in road haulage volumes, given its effect ondemand for containerised goods. This will help offset the negative effect on growth of a slowing projectpipeline in the wake of the completion of the Panama Canal expansion in 2016. That said, there are ongoingprojects that will necessitate the transport of capital goods related to construction, and the ongoingdevelopment of Panama as a global logistics hub will equally ensure growth in volumes.
Despite low levels of investment in rail, we expect that its role as a complimentary freight mode to shippingwill grow in importance as more volumes are diverted to the Panama Canal. Compared to other freightmodes, growth in rail freight will be slowest in the medium term.
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