Caribbean missing from top logistics FDI destinations
According to FDI Markets, a research arm of the Financial Times Ltd, Mexico and Brazil are the only two nations from Latin America and the Caribbean (LAC) to figure on the list of the top 20 destinations for logistics foreign direct investment (FDI) over a two-year period between 2013 and 2015.
The transportation, warehousing and storage sectors form the backbone of the logistics industry, the research arm states, noting that overall the UK and Mexico are attracting the most FDI in this field.
FDI Markets said on April 8 in a publication of research on greenfield investment in the transportation, warehousing and storage sectors that, between January 2013 and September 2015, the UK was the most popular destination for logistics projects, attracting 140 projects during this time period.
By number of projects as well, the US placed high at number two with 121 projects, and China at number three with 106 projects.
FDI Markets used a cross-border investment database.
In terms of investment dollars, the country which placed first was Mexico, with an estimated US$11.7 billion spent on capital expenditure for logistics projects in the country by foreign companies, ahead of China at US$11 billion, FDI Markets said.
Countries in the Caribbean, with their hopes pinned to the opening of a widened Panama Canal, have been wishing for such investments.
In Jamaica, the last four years have been spent on a public relations exercise and legislation development process in hopes of attracting funding for development of a logistics hub encompassing special economic zones.
Funding flows, however, are yet to appear.
The only other regional state which makes the top 20 list of logistics FDI destinations is Brazil, which placed at number nine on the list of top 20 logistics FDI destinations. Brazil featured with 55 projects, US$3 billion in FDI, and 30 investing companies over the period.
When projects and investment dollars were grouped together in the FDI markets review, Dubai was first and Singapore second. The UK took the third sport.
In Mexico, the city of Veracruz attracted the highest level of capital investment during the period studied, at an estimated US$4.1bn.
“While a number of emerging market destinations have performed strongly in the logistics arena, the more traditional market of Europe has continued to be a draw for companies moving goods around the world,” it was stated.
FDI Markets said Deutsche Post, described as the world’s largest logistics company, ranked as the top global investor among logistics companies, with 166 projects created by the company during the period studied. DHL Express, a division of Deutsche Post, ranked second with 62 projects.