Colombia Freight and Logistics Market Size (2024 - 2029)

The Colombia Freight and Logistics Market is projected to experience significant growth over the forecast period, driven by the recovery of the economy post-pandemic and the expansion of infrastructure projects. Road freight transport remains the predominant mode, while the logistics sector becomes increasingly competitive with the entry of international players. The government's focus on enhancing transportation infrastructure, including roads and airports, further supports the market's expansion. Additionally, the rise in online orders has prompted retailers to adapt their operations, contributing to the market's growth trajectory.

Market Size of Colombia Freight and Logistics Industry

Colombia Freight and Logistics Market
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Market Size (2024) USD 20.39 Billion
Market Size (2029) USD 29.44 Billion
CAGR (2024 - 2029) 7.62 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

Colombia Freight & Logistics Market Analysis

The Colombia Freight and Logistics Market size is estimated at USD 20.39 billion in 2024, and is expected to reach USD 29.44 billion by 2029, growing at a CAGR of 7.62% during the forecast period (2024-2029).

After a near-16% GDP drop in the second quarter of 2020 due to the COVID-19 pandemic, the economy began to recover in the third and fourth quarters. Four economic activities in 2020 exhibited positive trends when compared to the previous year's figures. Agriculture grew at a rate of 2.8%, followed by banking and insurance (2.1%), real estate (1.9%), and government administration (1%).

Road freight transport is the dominant mode of transportation in this country. The logistics landscape is becoming more competitive, with international players expanding into the region with strategies such as acquiring local companies. In July 2021, Colombia's COP 749 billion (USD 200 million) Puerta de Hierro-Cruz del Viso corridor was the second project finished under the country's 4G highways program. Several important road projects are now progressing in Colombia. Colombia's national infrastructure agency ANI says that seven of the country's fourth-generation (4G) road projects finished during 2021. A further 10 are expected to be completed during 2022, while one was completed in 2020.

As reported in August 2021, Colombia and the United Kingdom have reached an agreement on GBP 400,000 (about USD 550,000) to promote the revival and strengthen the country's railway operation. The air transport sector is one of the fundamental development engines of the country, which is why the Ministry of Transport has committed itself to strengthen the airport infrastructure with the delivery of fully modernized air terminals. The maintenance of those is required in the case of the Cafe Airport.

Colombia's exports in 2020 were USD 31,056 million, down by 21.4% from the previous year due to the global crisis caused by the coronavirus pandemic. According to the National Department of Statistics (DANE), the main reductions in the year were recorded in foreign oil sales, with a 45.2% drop, falling to USD 8,729 million. According to an industry survey, retailers have turned their stores into small warehouses to respond fast to requests due to a rise in online order volume. In 2021, 78% of logistics and transportation companies made same-day deliveries.

Colombia Freight & Logistics Industry Segmentation

Freight and logistics involve road, rail, sea, air transportation, and supporting services, such as warehousing, storage, freight forwarding, and customs brokerage for both domestic and international trade. The report provides a complete background analysis of the Colombian freight and logistics market, including an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles. The report also covers the impact of COVID-19 on the market.

The market is segmented by function (freight transport, freight forwarding, warehousing, courier, express, and parcel, value-added services, cold chain logistics, last mile logistics, return logistics, and other emerging areas), and end user (construction, oil and gas and quarrying, agriculture, fishing, and forestry, manufacturing and automotive, and other end users (pharmaceutical and healthcare)).

BY FUNCTION
Freight Transport
Road
Rail
Sea and Inland
Air
Freight Forwarding
Warehousing
Courier, Express, and Parcel
Value-added Services
Cold Chain Logistics, Last Mile Logistics, Return Logistics, and Other Emerging Areas
BY END USER
Construction
Oil and Gas and Quarrying
Agriculture, Fishing, and Forestry
Manufacturing and Automotive
Distributive Trade
Other End Users (Pharmaceutical and Healthcare)
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Colombia Freight and Logistics Market Size Summary

The Colombian freight and logistics market is poised for significant growth, driven by a combination of economic recovery and infrastructural developments. Following the economic downturn caused by the COVID-19 pandemic, the sector has shown resilience, with road freight transport remaining the dominant mode of transportation. The competitive landscape is evolving, with international players expanding their presence through strategic acquisitions and partnerships. Notable infrastructure projects, such as the completion of several fourth-generation road projects and the enhancement of airport facilities, are set to bolster the logistics framework. The air transport sector, in particular, is a key focus, with efforts to modernize airport infrastructure and increase international connectivity. The rise of e-commerce has further accelerated the demand for efficient logistics solutions, with online sales witnessing substantial growth, thereby impacting air freight operations.

Colombia's freight and logistics industry is characterized by a fragmented market with both international and regional players vying for market share. Despite challenges such as high operational costs and complex geography, the country remains an attractive destination for international trade and investment. The sector is witnessing a shift towards innovative logistics and supply chain management solutions to enhance competitiveness. Key industry players, including DHL, Servientrega, and Grupo TCC, are actively seeking to adapt to the dynamic market conditions. Recent developments, such as the acquisition of Cargex SA by CEVA Logistics and the participation of KLog.co in the TradeLens platform, highlight the ongoing efforts to leverage technology and strategic partnerships to drive growth and efficiency in the Colombian logistics landscape.

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Colombia Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Industry Attractiveness Porter's Five Forces Analysis

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Government Regulations and Initiatives

    6. 1.6 Technological Trends

    7. 1.7 Insights into the E-commerce Industry

    8. 1.8 Freight Rates/Logistics Cost in Colombia

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 BY FUNCTION

      1. 2.1.1 Freight Transport

        1. 2.1.1.1 Road

        2. 2.1.1.2 Rail

        3. 2.1.1.3 Sea and Inland

        4. 2.1.1.4 Air

      2. 2.1.2 Freight Forwarding

      3. 2.1.3 Warehousing

      4. 2.1.4 Courier, Express, and Parcel

      5. 2.1.5 Value-added Services

      6. 2.1.6 Cold Chain Logistics, Last Mile Logistics, Return Logistics, and Other Emerging Areas

    2. 2.2 BY END USER

      1. 2.2.1 Construction

      2. 2.2.2 Oil and Gas and Quarrying

      3. 2.2.3 Agriculture, Fishing, and Forestry

      4. 2.2.4 Manufacturing and Automotive

      5. 2.2.5 Distributive Trade

      6. 2.2.6 Other End Users (Pharmaceutical and Healthcare)

Colombia Freight and Logistics Market Size FAQs

The Colombia Freight and Logistics Market size is expected to reach USD 20.39 billion in 2024 and grow at a CAGR of 7.62% to reach USD 29.44 billion by 2029.

In 2024, the Colombia Freight and Logistics Market size is expected to reach USD 20.39 billion.

Colombia Freight and Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)