As the third-largest economy in Latin America with a population of 50 million people, Colombia not only offers a strong market with investment potential, but also fascinating and complex natural scenery. Colombia is a challenge because of its special geographical features and infrastructure, particularly for logistics specialists, but it also opens up many opportunities.
Colombia is the only country in South America to border on both the Pacific Ocean and the Caribbean Sea and this gives it access to both oceans. With a surface area of more than 1.14 million square kilometers, Colombia is the fourth-largest country in Latin America and is an important hub for international trade. At the same time, Colombia is home to very different climate zones, including tropical coastal regions and high-altitude mountainous areas, which extend over five main natural zones: the Andes mountain chain, the Pacific region, the Caribbean region, the llanos (lowlands) and the Amazonas.
The most important portsin the country, including Santa Marta, Cartagena, Barranquilla and Buenaventura, play a central role in international ocean freight in Colombia. By way of contrast, thecountry’s largest cities, like Bogotá, Medellín and Cali, are often located far away from the coasts and ports. This geographical separation makes it much harder to move goods around the country. Transporting goods across the Andes in particular represents an enormous challenge, as the routes are often long and winding and have to meet high safety standards. Colombia’s unique natural zones as well as its infrastructure therefore call for specially adapted strategies when transporting all kinds of goods.
The road network within the Colombia logistics landscape extends for about 206,000 kilometers, but the roads are often in a poor state, particularly in rural areas.1 This can cause delays and increases in costs when transporting goods, but road transport still accounts for almost 80% of all the freight volumes within the country.2 Most of the roads, which connect the seaports with the main cities, may be covered with asphalt, but only have two lanes, with just one in each direction.
Journeys across the Andes Mountains in particular take a long time. The route from Buenaventura on the Pacific Ocean, the main import port, to Bogotá is just 550 kilometers, but it can take between 24 and 36 hours to complete the trip.
Colombia’s railroad network stretches for approximately 3,500 kilometers, but is outdated and is mainly used to transport freight. There are two main routes: the Atlantic line and the Pacific line, but they are only operational to a limited extent. The share of railroad traffic in the overall transport in Colombia therefore accounts for just under 16%.3 The existing railroad infrastructure is mainly used for transporting coal on the north coast. One project to reactivate the railroad line between Santa Marta on the north coast and La Dorada in the center of the country may, however, serve as an important hub for cargo headed to Bogotá and Medellín in the future.
Another important aspect of transport in Colombia involves returning containers. Because of the uneven distribution between import and export goods, empty containers often have to be transported back over great distances and this requires careful planning and organizational work. About 80% of the imported containers have to be returned empty – and this increases logistical costs to a considerable extent.
In fact, the main difference between Colombia and other countries is the fact that its most important cities have not developed close to the coast, but in the country’s interior. Containers therefore have to be transported to inland areas, where most of the consumer and production centers are located. Many of the imports in Colombia involve raw materials and consumer goods, which are imported in containers, while most of the exports, like oil and coal, do not use this kind of equipment. This special fundamental situation means that logistics specialists have to provide flexible and innovative solutions in order to meet the requirements of the market.
Colombia’s coastline stretches for 3,208 kilometers, which makes the country an important player in ocean traffic. The most significant ports are Cartagena, Santa Marta and Barranquilla on the Caribbean coast and Buenaventura next to the Pacific Ocean. The port of Cartagena is one of the most modern and most efficient ports in South America and plays a central role in international trade. More than 2.5 million TEUs (Twenty-foot Equivalent Units) are handled here every year. The port is well-known for its extremely modern infrastructure and its efficient operating procedures and they make it an important hub for container traffic. Cartagena offers connections to more than 750 other ports around the world and it handles about 50% of Colombia’s total container traffic.4
The port of Buenaventura is the largest in the country’s Pacific region and is the most important access point for trade with Asia, because it handles about 60% of the entire volume of Colombian ocean trade. The port has an annual capacity for about 16 million metric tons of freight and is crucial for exporting agricultural products and minerals.5 The port of Barranquilla on the Magdalena River is an important transshipment point for transport in Colombia when moving goods inland. It connects the Caribbean coast with the industrial centers in Colombia and makes an important contribution to the national movement of goods with an annual capacity for approximately 9 million metric tons of freight.6 Ocean freight is mainly used to transport goods like coffee, oil, coal, bananas and other agricultural products, construction materials and chemicals.
In addition to ocean freight in Colombia, air traffic represents a major element in international transport services. The country has more than 100 airports, 13 of which handle international flights. The most important airport is El Dorado International Airport in Bogotá. El Dorado is one of the busiest airports in Latin America with an annual cargo volume of more than 750,000 metric tons and is one of the leading hubs in the region.7
Air freight is mainly used to transport perishable goods like flowers, foodstuffs, medical products or high-value consumer goods. Colombia is the world’s second-largest exporter of cut flowers and air freight plays a crucial role in rapidly delivering these sensitive products.8 However, air freight accounts for just a small fraction of the country’s total volume of trade, because this method of transport is very expensive. The share of imports handled by air freight, for example, amounted to just 17% of the free-on-board value (FOB) in 2023, while the proportion of exports accounted for 13% of the FOB figure. Most of Colombia’s trade is therefore handled by ocean freight and road transport, while air freight is used for particularly valuable and time-sensitive goods.
Colombia is strongly influenced by environmental factors that significantly affect transportation. The rainy season, which can last for up to nine months in some regions, regularly leads to floods and earthquakes, which then block roads. The heavy rainfall can often cause problems in the form of impassable roads, particularly in the mountainous regions. Above all, this requires a high degree of flexibility and quick thinking by logistics specialists to find alternative routes for transport in Colombia.
Colombia’s geographical location also plays an important role in shaping environmentally-friendly transport solutions. Initiatives like the expansion of railroad traffic and using rivers to transport goods can help reduce the country’s dependence on its road network and reduce its CO2 emissions. The Colombian Ministry of Transport is therefore planning to set up a public fleet of as many as 600,000 electric cars by 2030, which would lead to a significant reduction in CO2 emissions per annum.8 The use of electric vehicles and installing solar power facilities in logistics centers are further measures aimed at achieving sustainability. In this connection, the logistics specialist, Rhenus, is increasingly becoming involved in sustainability matters, for example, and, among other things, has started to install solar panels at the Rhenus warehouse in Bogotá, which is the largest distribution center.
Despite the different kinds of logistical challenges, Colombia offers enormous potential for corporations. Lucrative trading opportunities are opening up both for the European and the Asian markets, particularly in the field of ocean freight in Colombia. With its growing market and its increasing integration into global supply chains, the country offers numerous opportunities for investments and growth. The enormous variety of its geographical features and the constantly growing economy, however, call for innovative and flexible solutions. Logistics specialists, like the Rhenus Group, are facing up to the challenges and offer innovative solutions; they are therefore in a strong position to make ideal use of the opportunities presented by this dynamic country.
1 Source: https://www.cia.gov/the-world-factbook/field/roadways/
2 Source: https://globalamericans.org/colombia-is-finally-getting-on-the-trains-train/
3 Source: https://www.trade.gov/country-commercial-guides/colombia-infrastructure
4 Source: https://dlca.logcluster.org/213-colombia-port-cartagena
5 Source: https://dlca.logcluster.org/211-colombia-port-buenaventura
6 Source: https://dlca.logcluster.org/212-colombia-port-barranquilla
7 Source: https://www.routesonline.com/airports/10273/bogota-el-dorado-international-airport/about/
8 Source: https://www.colombiatrade.com.co/noticias/bienes-emergentes-exportaciones-colombia
9 Source: https://mobilityportal.eu/colombia-reindustrialization-electric-mobility/
