Latin American Rail Freight Transport Market Expands as Infrastructural Investments Pick Up, Finds Frost & Sullivan

Preferisci Informazione.News su Google

Photo - http://photos.prnewswire.com/prnh/20141215/164443

New analysis from Frost & Sullivan, Strategic Analysis of the Latin American Rail Freight Market, expects the market to receive over $47 billion in rail freight transportation investments by 2020. The study covers rolling stock and rail infrastructure.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/LA_PR_FValente_NB76-13_07Nov14.

Strong economic growth in LATAM supports increasing investments in infrastructure and equipment to develop rail freight communication and logistics systems. The gross domestic product of Argentina, Brazil, Colombia, Chile and Peru have grown at 5.2 percent over the last five years and is expected to rise at above 3 percent in the forthcoming years.

"With the average age of LATAM's locomotive fleet at more than 40 years old and a few models in active service for over 50 years, rail companies have little option but to purchase new locomotives or refurbish old models to improve fleet availability and assurance of motive power," said Frost & Sullivan Automotive & Transportation Research Analyst Shyam Raman. "These trends will help rail companies cope with the intensifying freight transport needs of the metal and mining and agriculture industries."

However, the fear of a rise in inflation rates is dampening rail companies' investment sentiments. As rail projects are often long term in nature, some companies believe that an adverse inflation scenario could significantly affect returns on investment.

"Nevertheless, with the availability of private funding, rising freight volumes and growing political stability, the LATAM rail freight market is still ripe for investments," noted Raman. "Regulatory changes that promote foreign investments through public-private partnerships are particularly supporting market expansion. Foreign participants have begun entering joint ventures to minimize the risk of investment and penetrate the previously-stagnant rail freight transport market. In fact, by 2020, China is expected to account for a significant portion of the foreign presence in the LATAM rail freight market."

Strategic Analysis of the Latin American Rail Freight Market is part of the Transportation & Logistics (http://www.transportation.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Rail Industry 2014, Global Rail Passenger Volumes, Eastern European Rail Market: A 360-degree Perspective, and Light Rail Transit in North America. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion
Join Us:           Join our community
Subscribe:       Newsletter on "the next big thing"
Register:         Gain access to visionary innovation

Strategic Analysis of the Latin American Rail Freight Market
NB76-13

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: [email protected]

http://www.frost.com