New Transportation market report from Business Monitor International: "Chile Freight Transport Report Q2 2014"

Boston, MA -- (SBWire) -- 05/01/2014 --We retain our cautious outlook on Chile's freight transport sector, and the economy as a whole, largely on the back of the slowdown in Chinese growth and its demand for copper. We believe that weaker fixed investment in Chile amidst mounting external headwinds - such as the aforementioned cooling external demand for copper - will negatively affect real GDP growth in Chile in 2014. We expect that expansionary fiscal and monetary policies by the Chilean government will provide some support for the economy, underpinning our forecast for headline growth of 4.2% in 2014, only slightly down from estimated growth of 4.3% in 2013.

View Full Report Details and Table of Contents

Over the next several years the China slowdown will result in weakening real demand for Chilean copper exports and reduced investment into the country's mining sector, which will have the effect of depressing road, rail and maritime dry bulk freight volumes.

Lower copper prices will place renewed importance on shifting away from export- and investment-led growth to a more diversified economic growth trajectory, one that is more reliant on private consumption. If private consumption takes an increased share of Chile's economy, we may see increased growth in air freight, as well as in maritime container volumes, as both freight modes are used to carry consumer goods. Rail freight, however, will be hit hard by a move away from mining, as will gross tonnage volumes at Chilean ports.

Headline Industry Data

- Air freight tonnage is forecast to rise by 7.0% in 2014 to reach 330,400 tonnes.
- Total tonnes at the port of Valparaiso are forecast to rise by 1.7%, to 10.57mn tonnes in 2014, with average growth of 3.0% over the medium term to 2018.
- Rail freight tonnage is forecast to grow by 0.5% in 2014, reaching 26.17mn tonnes, with average growth of 0.9% over the next five years.

Key Industry Trends

Port Infrastructure Investments Support Growth Forecast: Considerable investment in the expansion of Valparaiso Port confirms our positive outlook on Chile's ports infrastructure and the wider construction industry. We maintain our positive outlook on Chile's construction industry on the back of an investorfriendly business environment, political stability, and a strong pipeline of projects. Although we estimate a moderate slowdown in real growth for 2013 and 2014 to 4.7% and 5.6% respectively - compared to a high 8.1% in 2012 - this is still a promising outlook. In addition, we expect the Chilean construction industry value to more than double in the next decade, reaching US$51.5bn by the end of our 10-year forecast period in 2023.

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Transportation research reports at Fast Market Research

You may also be interested in these related reports:

- Hong Kong Freight Transport Report Q2 2014
- Hungary Freight Transport Report Q2 2014
- Czech Republic Freight Transport Report Q2 2014
- Romania Freight Transport Report Q2 2014
- Belgium Freight Transport Report Q2 2014
- Poland Freight Transport Report Q2 2014
- United Arab Emirates Freight Transport Report Q2 2014
- Australia Freight Transport Report Q2 2014
- Brazil Freight Transport Report Q2 2014
- Argentina Freight Transport Report Q2 2014