For any businessman, the flow of inputs into the plant and products out of the plant is fundamental for the business. He has to ensure that the inputs needed for production arrive at the right time and that the products he makes are sent out efficiently. It’s an expensive proposition, in some countries more than in others. In Latin America it is calculated that logistics costs represent between 18% and 35% of the value of a product – compared with 8% in member countries of the Organization for Economic Cooperation and Development (OECD).
Argentina is a special case even when compared to its regional neighbors: The Metropolitan Area of Buenos Aires has about one-third of the storage space per capita available in São Paulo and one-quarter of that in Santiago de Chile. A less-developed logistics industry translates into higher costs, especially for the end user.
In Argentina, the low level of foreign investment in recent years has been an important factor that has had an impact on the current situation. However, the investment climate is changing quickly, as we saw recently during the Forum of Investment and Business of Argentina. Companies are preparing for a market that’s starting to change considerably from that of recent years. Thus, it’s possible that investments in the logistics sector might grow quickly and that the infrastructure and technology might advance faster than the capacity of the labor force.
One company that’s working on this challenge is Plaza Logística. …
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