Transport and logistics (T&L) keep people and goods moving efficiently. They connect domestic and international markets and help cut transaction costs. In Latin America and the Caribbean (LAC), performance has improved in specific areas, but there are still infrastructure, governance, and service-quality gaps that raise operating costs and weaken competitiveness. Recent assessments by the Inter-American Development Bank (IDB) and ECLAC show that logistics costs remain well above those in advanced economies, hurting productivity and making food and exports more expensive.
This paper offers a practical, economics-minded look at the region—highlighting Colombia and comparing with Mexico, Brazil, and Argentina—organized by core components: roads, rail, ports, airports, and multimodal networks/logistics hubs.
- Regional snapshot: performance and investment needs
- Overall logistics performance. In the World Bank LPI 2023, Brazil (rank 51; score 3.2), Mexico (66; 2.9), Colombia (66; 2.9), and Argentina (73; 2.8) sit mid-table globally—evidence of lagging infrastructure, traceability, and customs processes versus OECD peers.
- Maritime connectivity. UNCTAD’s LSCI places Panama, Mexico, Colombia, Brazil, and Peru among LAC’s best-connected economies in 2024. Mexico edged ahead of Colombia thanks to more services and port calls. Better connectivity cuts time and costs and supports nearshoring/reshoring.
- How much to invest. To close gaps in transport, energy, water, and ICT and meet development goals, LAC needs to lift annual infrastructure investment from roughly 1.8% to ~3.1% of GDP—over 70% more—per recent IDB estimates using Infralatam data.
- Private participation. The World Bank’s PPI report (2023) shows resilient private investment in infrastructure across emerging markets (about US$86 billion globally). The Infrascope 2023/24 (IDB–Economist) finds >15% growth in PPP activity in LAC versus the prior edition, though institutional hurdles remain. For complex projects (logistics corridors, rail, ports), well-structured?PPPs are pivotal.
- Roads and highways: the backbone of freight and mobility
- Heavy road dependence. In Mexico, roads carry around 96% of passengers and anchor domestic distribution. That makes maintenance, road safety, and capacity management on key corridors (e.g., the Pacific axis and northern border routes) top priorities.
- Brazilian concessions. Since 2023, the federal government and ANTT have advanced highway concessions and tenders to attract capital, standardize service levels, and reduce logistics costs and accidents on inter-state corridors.
- Colombia’s push. The 4G/5G programs and the updated PMTI plan long-term investments of about COP 240 trillion over 30 years to strengthen intermodality and link rail and river corridors with the road network. In 2023, 136 million tonnes moved by road—underlining the mode’s dominance.
Why it matters. High road dependence makes costs more sensitive to fuel prices, tolls, and congestion. Smart policy focuses on routine and periodic maintenance (to protect assets), data-driven road safety, vehicle weights and dimensions, and?demand management (freight time windows, ITS, peri-urban logistics yards).
- Rail: scale and lower cost per tonne-km
Rail delivers economies of scale and lower costs per tonne-kilometre for bulk and intermodal freight, though progress varies:
- Brazil hit 18–19-year highs in general rail cargo: 148.6 Mt in 2023 and close to 150 Mt in 2024 (general cargo), driven by agriculture, fuels, and containers; including iron ore, totals exceeded 540 Mt. Gains reflect operations, private investment, and concession frameworks.
- Argentina is rebuilding volumes at Trenes Argentinos Cargas (8.4 Mt in 2022; official data), focusing on grains and fertilizers. Competitiveness ties closely to the Paraguay–Paraná Waterway (see next section).
- Mexico runs a concessioned network (Ferromex, KCSM, FIT, etc.). IMT data show rail’s role in intermodal corridors (Lázaro Cárdenas, Veracruz, Altamira); boosting intermodal is key to absorb nearshoring with lower costs and emissions.
- Colombia is working on targeted rail reactivation (PMTI, a national rail master plan) and structuring PPP segments (e.g., parts of La Dorada–Chiriguaná) to diversify a matrix still dominated by roads.
Why it matters. Shifting repeat, long-haul flows (agri/mineral bulk and import/export containers) onto rail lowers system-wide logistics costs and emissions, especially when paired with dry ports and well-placed transfer hubs.
- Ports and inland waterways: the region’s trade hinges
- Container ports. ECLAC’s 2023 ranking places Santos (Brazil) first (4.28 million TEU), followed by Manzanillo (Mexico, 3.70 m TEU) and Cartagena Bay (Colombia, 3.30 m TEU); Callao (Peru), MIT/Balboa (Panama), Guayaquil (Ecuador), Kingston (Jamaica), and Lázaro Cárdenas (Mexico) round out the top tier. These figures reflect capacity and real-world connectivity.
- Resilience and operations. ECLAC’s FAL Bulletin 407 (2025) notes mixed container trends in 2023–2024 amid global disruptions and service reshuffles. Keeping high port productivity and reliable land access is essential for resilience.
- Inland waterways. The Paraguay–Paraná Waterway—over 3,400 km across Argentina, Bolivia, Brazil, Paraguay, and Uruguay—moved 25+ Mt in 2023 (est.). It’s vital for grains, meals, and oils exports from the Southern Cone and for regional supply. Recent contractual/institutional changes in Argentina are reshaping governance.
Why it matters. Expanding and modernizing road/rail access to ports, plus appointment systems, digital paperwork, and 24/7 operations shorten cycle times and delays, directly reducing logistics costs and improving inventory turns.
- Airports: high-value connectivity
Air connectivity supports services, tourism, high-value exports, and just-in-time chains. According to ACI-LAC, member airports operate 350+ facilities in 41 countries/territories and handle ~95% of regional commercial traffic(over 570 million passengers and 5.4 Mt of cargo annually). Traffic recovered strongly in 2023 and kept growing in 2024.
For air cargo, IATA reports positive year-over-year momentum in 2024–2025 globally, with LAC benefiting especially in pharma, perishables, and high-value electronics.
Why it matters. Landside quality (access roads, cargo areas, cold storage) and simplified SOPs/customs are crucial to scale non-traditional, high-value exports and cut spoilage.
- Multimodal connectivity and logistics hubs
Multimodality—corridors that link roads, rail, rivers, and ports, anchored by logistics centers—is the most cost-effective way to lower system-wide costs. In Colombia, the PMTI and the National Logistics Policy (CONPES 3982) back the creation/upgrade of Specialized Logistics Infrastructures (ILEs): nodes that concentrate value-added operations and modal transfers under clear standards and permits.
Regional priorities:
- Governance and platform enablement (zoning, one-stop windows, interoperability),
- Intermodal incentives (short-haul rail to ports, barges on key river stretches, port community systems), and
- Data and traceability standards to reduce uncertainty and idle time.
Conclusions
Latin America is not starting from scratch: it already has concessioned road corridors, productive ports, strong air demand, and a rail/river base that can be revived. To fully unlock nearshoring, cut costs, and stabilize transit times, the region must invest more and better (~3.1% of GDP a year in total infrastructure), deepen multimodality, and close governance gaps (regulation, data, institutional coordination). Doing so will lift productivity, reduce emissions per tonne-km, and boost resilience to global disruptions.
References
– ACI-LAC (2024). Airport traffic projections; Adapting airports in LAC to a changing climate.
– IDB (2021).?Logistics in Latin America and the Caribbean: Opportunities, Challenges and Courses of Action.
– IDB/World Bank (2024).?PPI Database – Global Report 2023; Regional snapshots (LAC).
– IDB & Economist Impact (2024/2025).?Infrascope 2023/24.
– ECLAC (2025).?FAL Bulletin No. 407 – Port Report 2023–2024.
– CONPES (2020).?National Logistics Policy – CONPES 3982.
– DNP/MinTransporte (2023–2024).?PMTI; Road Freight Balance 2023.
– IATA (2024–2025).?Air Cargo Market Analysis / Press releases.
– PortalPortuario (2025).?Top 10 ECLAC 2023 (TEU) in LAC.
– UNCTAD (2024).?Regional LSCI (revised).
– World Bank (2023).?Logistics Performance Index.
