South America: Emerging Opportunities for Freight Forwarders Amidst Economic Shifts and Infrastructure Drives
Brazil: E-commerce Powerhouse and Infrastructure Boom offers growth for freight forwarder
As the largest economy in South America, Brazil stands out as a prime growth market for freight forwarders. The country's logistics market is projected to grow at a Compound Annual Growth Rate (CAGR) of nearly 4% from 2025 to 2033, driven by several key factors:
E-commerce Explosion: Brazil's e-commerce sector continues its rapid expansion, with online retail sales seeing double-digit year-on-year growth. This surge necessitates robust last-mile delivery solutions, efficient warehousing, and sophisticated supply chain management for both domestic and international e-commerce players.
Infrastructure Investment: The Brazilian government has an ambitious target of attracting over USD 34 billion in private investments for new rail and highway projects between 2024 and 2026. This significant push for logistics infrastructure development aims to reduce transportation costs and enhance efficiency, creating more reliable routes for road freight and rail cargo.
Manufacturing Growth: Investments from international automobile companies and other manufacturing sectors are driving demand for specialised inbound logistics and outbound distribution. For example, Stellantis and Toyota have announced multi-billion dollar investments in Brazilian manufacturing through 2030.
Technological Adoption: Growing adoption of automation, data analytics, and AI in Brazil's logistics sector is enhancing operational efficiency and transparency, offering advanced tracking and supply chain optimisation for forwarders who embrace these tools.
Chile: Resilient Logistics and Sustainable Initiatives benefits freight forwarders
Chile is demonstrating a resilient logistics sector, complemented by a strong focus on sustainable transport systems and significant infrastructure investment. As the current President of the International Transport Forum (ITF) for 2024-2025, Chile is showcasing regional leadership in sustainable and resilient transport, creating opportunities for forwarders focused on green logistics.
Infrastructure Pipeline: Chile plans to tender 22 infrastructure contracts worth approximately USD 11.7 billion in late 2024 and throughout 2025. These include major projects like the Santiago-Valparaíso train, highway upgrades, and the expansion of the Los Andes Land Port. Such developments will significantly improve intermodal connectivity and reduce transit times for both passenger and freight rail and road transport.
Green Logistics Push: The focus on electromobility, low-emission fuels in maritime transport, and a drive to reduce bottlenecks contribute to a more efficient and environmentally conscious logistics environment. Freight forwarders can leverage these trends to offer sustainable shipping solutions and gain a competitive edge.
Strategic Position: As a key player in copper and lithium exports, Chile offers consistent demand for specialised bulk cargo logistics and international shipping services.
Argentina: Mining Boom and Infrastructure Needs offers logistics opportunities
Argentina is experiencing an unprecedented boom in its mining sector, particularly in lithium, copper, gold, and silver. This growth presents significant logistics opportunities, albeit with existing infrastructure challenges that forwarders can help address:
Mining Export Growth: Mining exports reached USD 4.647 billion in 2024, a 14.4% increase over the previous year, with lithium production projected to jump 75% in 2025. This creates immense demand for specialised heavy haulage, project cargo, and efficient port services to move minerals from often isolated production sites to export ports.
Infrastructure Investment Imperative: The exponential growth in mining is highlighting the critical need for investments in roads, railways (like the Belgrano Cargas line), and port infrastructure. Freight forwarders with expertise in infrastructure development logistics or partnerships in these areas can play a crucial role.
Agricultural Exports: Argentina remains a global leader in agricultural exports (soybeans, corn, wheat), ensuring consistent demand for bulk freight and reefer logistics services, with projected growth of 15-20% by 2030.
Colombia & Peru: Diversification and Trade Growth
Both Colombia and Peru offer distinct opportunities driven by economic diversification and expanding trade. Colombia benefits from its strategic location with access to both Atlantic and Pacific coasts, fostering growth in diverse sectors. Peru, a significant producer of minerals and agricultural products, continues to see strong export volumes, demanding efficient multimodal logistics to connect its interior with its major ports.
The rise of nearshoring trends also benefits countries across South America, as companies look to diversify supply chains away from Asia and reduce transit times to North American markets. This trend is driving demand for robust cross-border logistics and regional distribution networks.