How important is road transport to Latin America’s petrochemical industry?

Road transport plays an essential role in the petrochemical and chemical industries across Latin America, serving as the critical link between production and consumption. With this region’s clear lack of railroad infrastructure, road transport is the dominant mode for overland freight movement. Many refined products such as polypropylene and other petrochemical derivatives are moved by road. Pipelines handle crude oil and some products, but trucks are essential for final delivery to customers and markets. What are the key challenges with road infrastructure in Latin America, and what is needed to improve it?

There are clear infrastructure deficiencies across Latin America. The debate continues around whether to invest in rail, road or river systems. Although IRU represents road transport, we support a multimodal, complementary approach.

On the road infrastructure side, investment is urgently needed. Even in the US, funding for highways is becoming strained. Vehicles today travel farther on the same amount of fuel, resulting in reduced fuel tax revenue per mile. We must look at new funding models, including public-private partnerships, to finance the road infrastructure necessary for economic growth. How is the decarbonization of road transport progressing in Latin America?

IRU maintains a technology-neutral stance when it comes to clean fuels. Electrification of commercial road transport in Latin America is progressing very slowly, if at all. Electric vehicles (EVs) make sense in specific use cases, such as port operations and urban delivery or mobility. However, the lack of charging infrastructure makes electrification very challenging, especially for long-haul routes through mountainous areas such as those in Argentina, Chile, Colombia, Peru, and Ecuador, where EVs consume electricity more quickly. Therefore, it is important to consider other alternatives such as hydrogen and biofuels. Brazil already has a robust ethanol industry, but other fuels such as methanol, biodiesel, and renewable fuels are also viable options. What is the nature of the current driver shortage in Latin America, and what solutions are being considered?

There is a growing shortage of qualified truck drivers, particularly in the long-haul segment of the industry. This shortage is not driven by salaries or economic incentives. In many countries, truck driving is still well-paid relative to other sectors that do not require higher education. The primary issue is lifestyle. Drivers are required to be away from home for long periods, which discourages new entrants to the profession. Many drivers would prefer to earn the same salary but work fewer days in order to spend more time at home. This is particularly true for long-distance operations.

Additionally, security concerns, treatment by clients, and poor road conditions add to the challenge. The commercial driver workforce is also aging, with a large percentage over 50 years old. The big challenge is how to attract and train the next generation to replace them as they retire. Can technology play a role in solving Latin America’s driver shortage?

Technology can play a role, but it is not a complete solution. Full automation of vehicles is not yet feasible, especially in mixed-traffic conditions. To achieve that level of automation, we would require infrastructure that enables vehicle-to-infrastructure and vehicle-to-vehicle communication. It is unlikely that fully autonomous vehicles will become standard in the near future. However, partial automation is advancing and can help reduce stress for drivers. Automated gearboxes and driver-assist technologies are already making vehicles easier and less tiring to operate. This may help to attract new demographics, including younger individuals who might be interested in operating high-tech trucks, or others who otherwise might not have considered a career in transportation. How does the APLA Logistics Meeting help to address industry-wide challenges?

Events like this are very valuable. They provide an opportunity to bring together stakeholders from across different transport sectors – maritime, road, and logistics – and create a shared understanding of the challenges and opportunities facing the industry. Here in Panama, we have had the chance to discuss the Panama Canal, port operations, and the conditions faced by service providers. These events allow for dialogue on pressing issues such as rising costs and overregulation. The industry needs to identify where regulation can be improved without compromising safety and security. Conferences like this one help to align strategies across sectors and build partnerships for future development.