Colombia Mulls Imposing Regulation That Increases Transportation Costs, Including Those of Coffee
Colombia Mulls Imposing Regulation That Increases Transportation Costs, Including Those of Coffee
Coffee Network (Bogota)-The Colombia government plans to implement a measure that forces mainly small truckers to destroy an old truck to allow the entrance of a new lorry, which would increase transportation costs across the board, including coffee, the national exporters association Analdex said.
The Ministry of Transportation published a new draft decree on March 25, 2025, proposing modifications to Decree 1079 of 2015. It revealed that the "one-to-one" vehicle modernization scheme would be extended to light vehicles with a capacity between 5 and 10 tons, which could increase logistics costs for freight generators due to potential restrictions in transportation supply and increases in freight rates.
“This measure also directly affects the challenge of modernizing the transportation fleet, a key aspect for improving the efficiency and competitiveness of Colombian foreign trade. The imposition of this scheme restricts the ability of freight generating companies and transporters, especially small ones, to acquire new vehicles, as it conditions the purchase of new vehicles on the dismantling of older units,” the country’s export association Analdex said By requiring the scrapping of an old light vehicle to allow the entry of a new one, the commercial value of the vehicles could increase, generating a secondary effect on the cost structure reflected by the SICE-TAC, with a direct impact on freight transportation rates.
In Colombia, almost 95% of coffee is transported along trucks to reach ports. Only a small fraction of coffee is being exported through the Central Railway, and such coffee beans belong to the coffee growers federation.
“This leaves us in an unfavorable position vis-à-vis trading partners such as the United States, as the sale of cargo vehicles in the country for providing public freight transportation services would be further restricted, generating upward pressure on freight rates and trade disputes with partners such as the United States and the European Union,” Analdex added.
In a context where the United States is reviewing what trade restrictions it applies to its trading partners, this barrier would imply a high probability of retaliatory measures being imposed on our exports, an issue that is directly the responsibility of the Colombian government. Likewise, among the regulatory changes, a mandatory freight table is established under the Efficient Cost Information System for Motor Freight Transportation (SICE-TAC). This measure would generate greater cost overruns for freight generators and represent a setback. Additionally, the mandatory implementation of the SICE-TAC does not consider real market dynamics, which could penalize efficient practices. This fact openly contradicts the provisions of the National Development Plan, which states that SICE-TAC costs are only a reference, Analdex added.
According to the National Logistics Survey of the National Planning Department shows that the logistics cost of sales for a Colombian company is 17.9%. This cost is almost double the average for OECD countries, which is around 9%. The most worrying aspect is that logistics costs in Colombia, rather than decreasing, appear set to continue increasing, Analdex said.
Finally, the government is promoting tariff increases in the automotive sector, with freight transportation being directly affected. The pressure the government is exerting to make Colombian exports less competitive will prevent the development of an internationalization policy that would increase the number of Colombian companies and allow them to sell their products in international markets.
By Diana Delgado
