|
|
Peru Freight Transportation Report Q2 2008Product Type: Market Research ReportPublished by: Business Monitor International Published: April 2008 Product Code: R302-3172 Description Peruvian President Alan García and his US opposite number George Bush signed a long-negotiatedbilateral free trade agreement (FTA) in Washington in December 2007, which was expected to boosttrade and therefore demand for transport services between the two countries. Bilateral trade stood atnearly US$9bn per annum in 2007. The FTA will eliminate duties on around 80% of US consumer andindustrial goods sold in Peru, taking the proportion up to 100% in the next 10 years; it also providesimproved access to US markets for Peruvian exports. US Trade Representative Susan Schwab noted thatPeru had enjoyed duty free access to the US market for over 14 years under the terms of the AndeanTrade Preference Act, and the FTA would now make that permanent. President García, who took office inmid-2006, is focusing on three key freight-related priorities. BMI’s newly-released Peru FreightTransport Report identifies the three as the construction of the inter-oceanic highway connecting Peru toBrazil, Pacific coast port development and the complex of natural gas pipelines and liquefied natural gas(LNG) facilities associated with ongoing development of the Camisea deposits. These three projectsunderpin BMI’s view that Peruvian freight-transport turnover, measured in million-tonne-km (mntkm)will grow by an annual average of 7.8% in 2008-2012, ahead of annual GDP expansion of 5.0% in thesame period. By value, the transport and communications sector will grow to be worth US$3bn in 2012,representing 9.7% of total GDP. BMI’s view is that freight transport has a critical role to play in Peru’s development over the next fewyears. Much will depend not only on the management of concrete projects, but also on the quality of thebusiness environment in this sector. BMI gives Peru an overall freight rating of 64.2, placing it just aboveaverage among its peers. There is room for improvement in infrastructure development and the regulatoryenvironment. Among the risks facing our forecasts are political uncertainty and the possibility of a fall inthe price of Peru’s commodity exports, leading to downward revision of predicted growth rates.On balance then, and despite the possibility of turbulence in the airfreight sector (traditionally volatile inrecent Peruvian experience) and slower growth in rail freight, BMI is projecting an encouraging futurefor the country’s freight sector. Table of Contents
|
|
||||||||
MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence. |