Colombia - Transport and Logistics: Government projects to support industry growth (Strategy, Performance and Risk Analysis)
The Colombian government is undertaking initiatives and investments in order to develop the country’s infrastructure. One of the most important projects is the US$16.0bn Fourth Generation (4G) Road Program. New infrastructure projects in growing sectors such as air and water are expected to continue to support freight volume. For instance, the modernization and expansion of more than 25 national and smaller regional airports under a US$1bn project has been undertaken by the government to boost connectivity.
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Increasing air freight and passengers to help drive GVA
In Colombia, air transport GVA recorded a CAGR of -6.5%, falling from US$1,388.5m in 2012 to US$989.8m in 2017. This was due to a decrease in international commodity prices. However, air transport GVA is anticipated to post a CAGR of 3.7%, rising from US$1,030.7m in 2018 to US$1,193.3 in 2022.
Increase in inland water freight volume and passengers to boost water transport GVA
In Colombia, water transport GVA recorded a CAGR of -6.8%, from US$170.9m in 2012 to US$120.2m in 2017. However, water transport GVA is anticipated to post a CAGR of 3.5%, from US$125.2m in 2018 to US$143.8m in 2022, primarily due to an increase in the number of inland waterway passengers and freight volume, led by the implementation of transportation development program plans by the Colombian government. The freight volume of inland waterways recorded a CAGR of 3.0%, from 3,474.0 tons in 2012 to 4,032.2 tons in 2017.
Transportation and support activities GVA expected to increase
Transportation and support services GVA recorded a CAGR of -6.6%, from US$1,303.8m in 2012 to US$924.3m in 2017. However, it is anticipated to post a CAGR of 3.7%, from US$963.5m in 2018 to US$1,112.4m in 2022, primarily due to an increase in the demand for land transport support activities, such as mechanics. The country’s road fleet size is anticipated to post a CAGR of 5.9%, from 6.3 million in 2018 to 8.0 million in 2022.
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