Market Trends of Chile Third-party Logistics (3PL) Industry
Infrastructure Development Projects Underway Supporting the Chile 3PL Sector
- Chile is gearing up for a substantial infrastructure push, with tenders valued at approximately USD 2.3 billion in 2023. The Ministry of Public Works (MOP), renowned for its meticulous planning and transparent bidding, fosters a collaborative environment between government bodies and private enterprises.
- Chile's unveiling of its 2024 bidding plan, featuring a staggering 680 projects, underscores its unwavering commitment to driving economic growth through strategic infrastructure investments. These projects span various sectors, from airport and architectural advancements to hydraulic engineering, port expansions, and rural healthcare facilities.
- Over the next 18 months, the Chilean government plans to roll out tenders for 11 infrastructure projects, collectively valued at USD 7.5 billion. Luis Felipe Elton Sanfuentes, head of project development and tenders at the MOP, revealed this ambitious portfolio at the PPP Americas forum in Panama City.
- These projects include crucial segments of the Pan-American highway, like Santiago-Los Vilos, Temuco-Río Bueno, and Iquique-Antofagasta, among others. Additionally, projects like the Valdivia access road and the Pie del Monte highway are on the agenda.
- Chile's new road expansion initiative is poised to enhance freight transport by bolstering connectivity and slashing travel times. The maritime sector, especially at the Port of San Antonio, is set to witness a surge in demand for freight transport, buoyed by concurrent road infrastructure enhancements.
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Chile's Trade Expansion Drives Growth in the 3PL Market
- In its pursuit of bolstering international trade, Chile has not only deepened ties with various nations but also broadened its export horizons. This strategic push has significantly upped the ante for efficient logistics services, benefiting the 3PL sector.
- As Chile's trade landscape expands, so does the volume of goods crossing its borders. In 2023 alone, Chile witnessed imports valued at USD 80.49 billion and exports totaling USD 100.29 billion. With this surge in trade, the demand for robust logistics and supply chain services has soared, presenting 3PL providers with a ripe opportunity to offer tailored solutions.
- Chile's proactive stance in forging trade pacts has not gone unnoticed. These agreements have not only birthed new trade avenues but have also ramped up cross-border activities. Chile's trade diplomacy shines through its 26 negotiated agreements, now operational in 25 instances. These pacts span a vast landscape, covering 65 markets and representing 88% of the global GDP.
- These agreements are diverse, including 17 FTAs with nations like the United States, Canada, Mexico, Korea, and many others, alongside three Economic Association Agreements with entities such as the European Union and Japan.
- Further solidifying its trade network, Chile has inked six Economic Cooperation Agreements, notably with Bolivia and Peru, and holds a Partial Association Agreement with India, complemented by a Commercial Protocol within the Pacific Alliance. These strategic moves have smoothed the flow of goods across borders and positioned 3PL providers to capitalize on this robust infrastructure, tailoring services to meet evolving business demands.
