To tell about logistics we must compare Argentina with countries of the same characteristics and observe how they solved these difficulties, without first mentioning what is produced in our country that this business strategy to reduce costs, is more expensive than in other countries.
Argentine history has a lot of edges in terms of logistics and distribution. This story has been told for many years, as characteristics of our country must recognize its great territory, currently the Argentine Republic is the eighth largest country in the world, this brings with it certain disadvantages considering the distribution of population in the territory . The second characteristic is the aforementioned, the number of inhabitants in our country, 40091359 million, according to the last census of 2010 of which the vast majority are distributed among some provinces, Buenos Aires (155944289), Córdoba (3304825) and Santa Fe (3200736), only among these 3 provinces are more than 50% of the total population of the country carried in their territory, these data serve to explain the following observations:
-It is difficult to reach the rest of the country taking context out of the 3 most populated provinces of the country (it is commercially unfeasible) –
-Being the Buenos Aires center (since the port is here and not elsewhere), all the provinces have the obligation and need to reach this province if they want to export.
-The transport mainly used is the truck, and not the cargo train, this (truck) has certain disadvantages, a cargo train is equivalent to a fleet of 100 trucks. However, it is not known why governments (for 60 years) have decided to agree with the guilds on duty to reactivate the railway.
-Internal taxes such as VAT, plus the desired profitability, are added to each part of the logistics chain.
On the other hand, and related to a previous point, fuel is Argentina has a value of the highest in Latin America, which directly affects the value of transport.
Also to consider a high value (in fact, Argentina is ranked as the most expensive country in Mercosur) is the value of labor (as truck drivers).
The same happens with the value of the logistics operator, Argentina is among the highest values ??of Mercosur.
Another factor to take into account is the cost of lubricants to move heavy machinery that has the highest value in all of Latin America,
By taking an average of all costs, Argentina is 24% above Brazil, its main trading partner in Mercosur and 70% more expensive than Bolivia, the cheapest in the entire region.
Final conclusion: Almost all developed and developing countries have been able to find solutions to reduce their logistics costs and make the cargo transport system more efficient, unfortunately Argentina for political and organizational issues is not one of them.
