Land transport projects, mainly the expansion and modernization of road networks, have played a major role in infrastructure investment in Latin America, both in greenfield projects and in those that improve existing assets.
The large investments required in this sector and the financial burden of a variety of projects that state entities can not undertake, either due to fiscal adjustments or other macroeconomic factors, has allowed the implementation of concession models in recent years such as Public-Private Partnerships (PPP) in which the participation of the private sector is very relevant.
Countries such as Colombia, Chile, Mexico, Peru and Brazil have a mature institutional and legal framework that facilitates the execution of concession contracts in a more secure legal environment.
Other countries, such as Paraguay, Ecuador and Argentina, which have more incipient structures, are improving these conditions at the institutional level as a basis for raising private capital for their road programs.
Despite these advances, there are still serious shortcomings in road transport infrastructure, which have a negative impact on the competitiveness of the region. The land transport networks show important deficiencies, which are generally due to the level of economic development of each country, geographic and topographic conditions and the maturity of their investment plans.
If you take the last Competitiveness Report of the World Economic Forum (WEF), in the quality index of the road network, two of the region's main economies - Argentina and Brazil - are in the last positions of the ranking that ranks 137 countries: 96 and 103, respectively. Chile and Ecuador have the best indexes in the region, at 24 and 29 in the ranking.
This reality opens up a wide range of investment and business opportunities in the aforementioned countries for international, regional and local companies that operate in this industry.
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