|
|
 |
|
Viewing report
|
|
|
|
Chile Freight Transport Report Q3 2010
Business Monitor International, Aug 2010, Pages: 30
Business Monitor International's Chile Freight Transport Report provides industry professionals and strategists, corporate analysts, freight transportation associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Chile's freight transportation industry.
2010 looks like being a year of recovery for Chile's freight transport sector in every sense of the word after the country's economy looks to rebuild itself after the 2009 economic downturn and a major earthquake which shook the centre-south regions in February 2010. With the cost of repairing the damage estimated by the incoming government at between US$20bn and US$30bn, there has been much focus on whether financing will be released for much-needed reconstruction work on ports and road freight facilities.
In spite of ongoing reconstruction efforts, several facilities continue to suffer the after-effects of the quake with the cost of restoring the port of Talcahuano to full capacity estimated by the government at US$250mn. With a new administration now in place, an outline for how the redevelopment of the port and other infrastructure assets will take place has yet to be put in place.
These issues aside, there have been a number of positive developments for Chile's freight transport sector in recent months. Not least has been the encouraging return to grace of the country's largest commercial shipping line Compania Sudamericana de Vapores (CSAV). Having been badly hit by the global economic downturn, a major recapitalising effort has seen the company's share price rebound, growing by almost 23% between January and May. Having narrowly avoided bankruptcy in 2009, the carrier has also been able to force its way into AXS Alphaliner's rankings of the world's top 100 container lines and in May 2010, found itself placed eight with a total fleet capacity of 472,225 20-foot equivalent units (TEUs) and a market share of 3.4%. The figures reflect a major turnaround for the carrier which, due to downsizing efforts, had found itself placed 16th with a market share of just 2.1% 12 months previous. CSAV is one of several South American liners in the enviable position of being able to profit from a marked upspring in regional trade volumes. BMI research suggests that the Europe-South and Central America trade route was one of the recovery success stories in the first three months of 2010. The trade route, according to data from the European Liner Affairs Association (ELAA), posted year-on-year (y-oy) growth of 19.9%, just below the much publicised Asia-Europe trade route growth of 20.8%. In May, CSAV announced it will rejoin the Europe-Central America and Caribbean Service (ECS) trade route where it will operate a container service in tandem with French line CMA CGM. Rival Chilean line CCNI has also increased capacity to and from South America and, in the same month, agreed with German partner Hamburg Sud to restore full capacity to the Asia-West Coast South America loop which was downsized by the companies at the start of the downturn. The two-string service will comprise 21 vessels calling at Valparaiso, Iquique, Puerto Angamos and Antofagasta, as well as other key South American ports.
Increased trade volumes are expected to feed into throughput volumes at Chilean major ports and we are forecasting the country's two major maritime terminals, the ports of San Antonio and Valparaiso, both to report double-digit throughput growth in 2010. At San Antonio, we project total tonnage volumes to be up by 11.2% y-o-y to 13.47mn tonnes, offsetting 2009's 8.3% contraction. At Valparaiso, growth is forecast at 18.6% which will see the port handle 10.73mn tonnes following a 17% decrease last year. The airfreight sector has also showed signs of a rebound and, in April, national carrier Línea Aérea Nacional (LAN) revealed it will invest US$2.83bn between 2010 and 2013 in order to increase its fleet size. The airline is planning to invest US$500mn in 2010 and another US$1bn in 2011 to purchase shortand long-haul aircraft to expand its fleet to 176 aircraft in 2018.The announcement comes in the wake of the airline's strong financial performance over Q110 when it registered a 36% year-on-year (y-o-y) surge in net profit to US$88.3mn. The company has also continued with its overseas expansion strategy and its airfreight unit LAN Cargo is due to launch a new US$4mn cold-storage facility at Miami International Airport. Chile's airfreight sector is forecast to record freight tonnage growth of 7.5% across the sector to 308,200 tonnes after 2009's 7.68% decline. An average annual Growth of 6.19% is projected over our 2010-2014 forecast period.
Rail freight is also on course to rebound after a narrow growth contraction in 2009 when total volumes carried fell by 1.8% y-o-y to 26.7mn tonnes. In 2010, we forecast growth of 3.2% to 27.55mn tonnes. In recent years, Chile has enjoyed strong export led growth thanks, in no small part, to 2005's free trade agreement (FTA) with China which have seen the Asian country become Chile's largest export market with sales of US$11.04bn in 2008. In 2009, however, the Chilean economy, 40% of which is comprised of net exports, was hit hard by the global economic downturn as exports fell by 18.1% y-o-y in value terms to US$62.2bn. This year we forecast a recovery in the country's trade volumes with total trade growing by 16.6% in real terms with imports and export increasing by 19% and 14% respectively. For the rest of our forecast period to 2014, trade growth will remain robust at 14.9% per annum.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
Chile Freight Transport Report Q1 2012
Australia Freight Transport Report Q3 2010
Chile Shipping Report Q1 2012
Hong Kong Freight Transport Report Q3 2010
Chile Freight Transport Report Q4 2011
South Korea Freight Transport Report Q4 2010
Australia Freight Transport Report Q4 2010
Freight Transport Industry in India 2009-2014
Chile Shipping Report Q4 2010
Poland Freight Transport Report Q4 2010
|
|
|
|
