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Infrastructure Investments, Digital Disruption, and New Business Models in Logistics will Drive Improved Operation and Cost Efficiency
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The Brazilian economy witnessed a decline in 2015 and 2016. The over-dependence on commodities, the high operating cost, the high inflation, and the low productivity have been challenges in recent years. The sharp slowdown in economic activities has influenced the country's transport and logistics (T&L) sector. Freight transport is heavily dependent on roadways; as a result, investments in its infrastructure and quality and the allied factors, such as road safety and future connected truck technologies, are of significance. High logistics costs and complex tax structures are key challenges for the logistics market in Brazil. In addition, public sector initiatives to improve and invest in the future development of the T&L sector will also be significant for the sector's future growth. With the Growth Acceleration Program and the new stage of the Program of Investment in Logistics (PIL), logistics improvements in highways, railways, and waterways will be benefited. The logistics and warehousing market is undergoing a complete digital disruption, driven by technologies in automation and management systems, new business models such as on-demand freight brokerage, and innovations in freight delivery. This study begins by providing an outlook of the key trade and economic indicators and the key macro developments that are impacting the T&L sector in Brazil. The freight transportation mix is then discussed, with an overview of the innovation in technology trends and an outlook for original equipment manufacturers (OEMs). The study then goes on to present and discuss the 3PL and warehousing sector in Brazil, highlighting the market dynamics, challenges, innovations, and developments. The study concludes by providing the top growth opportunities in the sector. Scope: The aim of this study is to research and analyze key developments and trends relating to Economy and Trade and the Freight Transportation, Logistics, and Warehousing sectors in Brazil.Objectives:• To provide an overview of the current scenario and key factors impacting Brazil's economy and trade • To analyze the role of the transport and logistics sector in driving growth in Brazil, and how the recent market movements are impacting change• To present and discuss the key advancements in digital technologies that are impacting the 3PL and warehousing market• To offer an in-depth analysis of how the traditional transport and logistics value chain is transformed through e-Commerce growth, new business models, and investment • To discuss the key growth opportunities and strategic imperatives for success
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