Editor’s Note
This article highlights a critical challenge facing Latin America’s economies. As global instability strains supply chains, a new ECLAC report underscores the urgent need for the region to modernize its logistics infrastructure and build greater resilience. The findings are a timely reminder that strategic investment in connectivity is not just a logistical issue, but a cornerstone of future economic security and growth.
In an international context marked by geopolitical conflicts, trade fragmentation, persistent inflation, and low growth, the logistics and supply chains of Latin America are under strong pressure. This is revealed in the latest report from the Economic Commission for Latin America and the Caribbean (ECLAC), which warns of the urgency to redesign the region’s logistical infrastructure, modernize its connectivity, and adopt more resilient strategies.
According to the report, the current global scenario has multiplied the risks for supply chains, exposing the region’s fragility in the face of logistical disruptions. Trade tensions between major powers, the war in Ukraine, the persistent effects of the pandemic, and extreme climate events have tested the capacity of Latin American countries to sustain stable foreign trade flows.
In this sense, ECLAC points out that Latin America faces a double challenge: to respond to global risks with greater resilience, while overcoming the structural deficiencies of its own logistical infrastructure. These weaknesses, historical in many countries of the region, translate into higher costs, delays, and loss of competitiveness.
One of the central points of the diagnosis is the need to invest in physical and digital infrastructure to improve logistical efficiency. The region continues to present high transportation and logistics costs compared to other emerging economies, which particularly affects small and medium-sized exporting enterprises.
The lack of maintenance on roads, railways, and ports; the low digitalization of customs processes; and the poor integration between multimodal transport systems generate bottlenecks that impact both international trade and internal supply. This, the report warns, worsens in emergency situations, such as natural disasters or health crises, when logistics become even more critical.
Amid this complex panorama, ECLAC also identifies opportunities. The relocation of productive chains by major powers (through nearshoring and friendshoring strategies) could benefit Latin American countries, bringing them closer to strategic consumption centers like the United States and reducing dependence on distant suppliers.
However, to capitalize on this opportunity, the region must improve its logistical competitiveness. This implies, among other things, reducing transit times, simplifying customs procedures, strengthening bioceanic corridors, and ensuring greater intermodal connectivity. Otherwise, the global redesign of value chains will pass it by.
In the case of Argentina, ECLAC’s diagnosis resonates with particular force. Deficiencies in road, railway, and port infrastructure have been pointed out as factors that increase logistics costs and limit the country’s export potential. This is compounded by the high dependence on land freight transport, which generates bottlenecks and a significant environmental impact.
Furthermore, the need for greater regional integration—both physical and regulatory—appears as a key point for intra-zone trade. In this sense, Argentina faces the challenge of updating its logistical corridors, adapting to the new demands of international trade (such as traceability or emission reduction), and advancing an agenda that combines sustainability and efficiency.
The report also focuses on the impacts of climate change on logistics. Prolonged droughts, floods, fires, and other extreme events are increasingly affecting the region’s critical infrastructure, such as roads, railways, and ports. Faced with this, ECLAC proposes moving towards more resilient logistics, which includes climate adaptation measures, sustainable investments, and new technologies.
The transition towards sustainable value chains not only responds to an environmental demand but also to an economic necessity: more and more markets require certifications, energy efficiency, and responsible practices as a condition for access. Green logistics, therefore, is no longer an option but a requirement to compete globally.
Finally, ECLAC emphasizes that to improve logistics and strengthen supply chains, an integrated approach between trade, transport, and infrastructure is essential. This requires coordination between countries, public-private dialogue, and long-term policies that transcend economic cycles.
Latin America, the organization concludes, must move from diagnosis to action. The modernization of its logistics will not only reduce vulnerabilities but also allow it to better position itself in a world that is rapidly redefining its production and supply rules.
