Overview

The liquid fuel production, distribution and commercialization chain in Colombia starts at oil refineries and biofuels producers.

The National Government, through the Ministry of Mines and Energy, is responsible for formulating the guidelines on prices and the comprehensive management of oil, gas and biofuels while the National Hydrocarbons Agency ensures the optimal and sustainable use of the country's hydrocarbon resources, managing them comprehensively while aligning the interests of society, the State and sector companies.

Colombia has two oil refineries (Barrancabermeja Refinery and Cartagena Refinery - Reficar), both owned by Ecopetrol, which have an installed capacity of 1,958 million barrels. This amount supplies the total fossil fuel demand in the country while oil surplus is used for export.

Biofuel production in Colombia is concentrated in seven fuel ethanol production plants with an estimated capacity of 1.76 million liters per day and ten biodiesel producers in six departments with an installed capacity of 2.1 million liters per day.

Around 50 supply facilities currently manage 17 wholesale distributors, where TERPEL has the largest market share, holding 40.8% of the total sales volume. In addition, the country has a retail distributor network comprising approximately 5,570 gas stations. Fuels are transported by tanker trucks to gas stations or major institutional consumers (industries, airports, transportation companies, etc.)

Below is a list of the main fuel companies in Colombia:

• TERPEL: The company has a market share of 40.8% of total sales and a national network of 300 gas stations online connected, in addition to the largest natural gas vehicle network in the country operating under the Gazel brand.

https://www.terpel.com/

• BIOMAX: The company ranks second in the national market share with 16% of sales in wholesale and retail distribution of petroleum-derived liquid fuels. It has a total of 769 gas stations. BIOMAX products for wholesale and retail fuel distributors are: Diesel, gasoline, Jet A-1 turbine fuel.

https://www.biomax.co/

• ENERGIZAR AVIACION: Colombian company dedicated to aviation fuel sale and supply in the country. It has 35 years of experience, making it a leader in this market segment. It has 3 major terminals of its own, receiving directly from Ecopetrol's polyduct network, and 20 fuel stations placed near the most important airports in the country.

          http://www.energizar.org/

• PETROMIL: Colombian company dedicated to aviation fuel sale and supply in the country. It has 30 years of experience, making it a leader in the fuel and gas supply chain.

https://www.petromil.com/

• EXXONMOVIL DE COLOMBIA: The company ranks third in fuel sales with a 15% domestic market share with 420 gas stations nationwide.

https://corporate.exxonmobil.com/

• PRIMAX: Peruvian company with more than 100 years of experience, dedicated to the sale and supply of petroleum-derived liquid fuels. The company started operations in Colombia in 2018 by acquiring Esso and Mobil gas stations. By July 2020, the company had around 750 gas stations nationwide, which has strengthened its market share at the national level.

Fuel Pricing

In Colombia, a "Controlled Freedom” system is in place for the fuel market. The above implies that the Government, through the Ministry of Mines and Energy, sets the current price for fuels by means of a decree/resolution . Distributors and gas stations set their prices without exceeding the price set by the Government.

Average gas or diesel oil price per gallon is calculated by adding producer's income, biodiesel, national tax, territorial tax, distribution margin and transportation costs. Each one of these items, represented in different percentages, adds up to the total fuel price.

Jet A-1 fuel distributors are located at airports nationwide.

For further information on prices published by the Ministry of Mines and Energy, please check the following link.

https://www.minenergia.gov.co/precios-de-combustible

Seasonal Variation in Fuel

Fuel Transportation

Under Article 3 of Decree 1073 of 2015(*), the National Government has reassigned some functions from the Ministry of Mines and Energy to the Energy and Gas Regulatory Commission, including the regulation of liquid fuel transportation operations, among others.

https://www.anm.gov.co/sites/default/files/decreto_1073_de_2015.pdf

Standards, Quality and Testing

Ecopetrol is the company responsible for oil refining in Colombia. Refined fuels are subject to NTC 5444 - NTC 1438 Colombian technical standards, which include most current European Union and United States standards. Although Ecopetrol has its own testing laboratories, some private laboratories are also available, such as: Intertek and Consultoría y Análisis Técnicos- Cyat S.A.

Disclaimer: Provider registration shall not imply any business relationship between the provider and WFP/Logistics Cluster, which shall be solely used as a determinant of services and capabilities. Please note, WFP/Logistics Cluster shall maintain impartiality at all times and not be in a position to endorse any comments on the suitability of any company as a reputable service provider.

Overview

Transportation in Colombia is classified based on its geographical coverage (rural, urban or national transportation services) and type of users (passengers or cargo.) Different types of cargo transport are available depending on the number of shipment origins and destinations: massive cargo, semi-massive cargo, courier delivery, among others, depending on the level of customization of operations.

The following stakeholders are included in the transportation business model in Colombia: Cargo generators are companies or organizations requiring cargo mobilization; transportation companies are intermediaries offering the service with all government qualifications and permits; and owners/drivers of transport vehicles, the latter affiliate their vehicles to different transportation companies. Some transportation companies also own a large fleet, although not many in the country, operating with both types of fleets.

On average, transportation service is provided using 17.6% of the companies’ own fleet while 83.4% is outsourced, involving small vehicle owners that work with drivers who do not have a direct subordinate relationship with the transportation company, thus affecting service quality.

An oversupply of vehicles is found in this sector due to two possible variables: firstly, vehicle fleet lifespan in Colombia exceeds 15 years on average and secondly, vehicle imports increased during the oil boom, especially in 2013 and 2015.

In addition, commerce has driven the increase in cargo mobilization. Based on the information provided by the National Administrative Department of Statistics (DANE), this indicator increased by 5% annually in real terms between December 2018 and December 2019, which helped increase national cargo mobilization by 66% during this period.

The National Government, through the Ministry of Transport, regulates this sector, also supervised by the Superintendence of Transport. Decree 173 of 2001 provides the regulations for road cargo transportation services. (www.mintransporte.gov.co)

 Many transportation companies and associations are currently implementing mechanisms to interpret the reality of the transportation industry and look after their commercial interests. Some of them are below: The National Association of Road Freight Transportation Companies (ASECARGA), the Colombian Truckers Association (ACC), the Colombian Freight Transport Federation (COLFECAR) and the Colombian Vehicle Association (ANDEMOS).

Here are some of the companies providing freight transportation services in Colombia:

Coltanques S.A.S.

The company provides warehousing and land freight transportation at national and international level. It has implemented and maintained an Integrated Management Policy, highlighting its commitment to meet the needs and expectations of its stakeholders.

Forward S.A.S. 

The company provides comprehensive land freight transportation solutions according to the needs of its clients for product mobilization at national and international level.

Cotrasur

The cooperative offers massive cargo transport operating at national and international level.

Transmultimac

The company offers massive cargo transportation, container transport, semi-massive cargo transport, special urban transportation and projects.

Disclaimer: Provider registration shall not imply any business relationship between the provider and WFP/Logistics Cluster, which shall be solely used as a determinant of services and capabilities. Please note, WFP/Logistics Cluster shall maintain impartiality at all times and not be in a position to endorse any comments on the suitability of any company as a reputable service provider.

In Colombia, labor is directly related to the costs of producing a product or providing a service, which can have a positive or negative impact on profits, cost-effectiveness and cash flow of companies. Labor is highly concentrated in developing main industries, commerce, transport, tourism, residential construction and highway megaprojects in the country. However, the country is experiencing an unskilled labor shortage and, to a lesser extent, workers without technical and professional training.

In Colombia, the minimum wage increased 6% in 2020 and 3.5% in 2021. At present, the minimum wage includes several components, such as basic wage, transportation allowance, subsidies, bonuses and all others constituting ordinary, fixed or variable remuneration received by workers as direct compensation for their services.

The National Government, through the Ministry of Labor, regulates the labor market in Colombia aimed to formulate and adopt policies, master plans, projects and programs on labor matters nationwide.

According to the information provided by DANE (National Administrative Department of Statistics), 53.36% of workers in Colombia are self-employed, 45.2% are private-sector employees, 4.14% are public servants, 3.43% are female domestic workers, 3.36% are farmworkers and 4.75% are workers that do not receive or report any remuneration. Self-employment is prevalent in the Colombian labor market.

https://www.dane.gov.co/index.php

Source: https://www.mintrabajo.gov.co/web/guest/inicio

Note 1. UN exchange rate in March, 2021: COP $3,576

(*) Workers that are not required to have any prior studies or experience, e.g., farmworkers, assistants, etc.

(**) Workers that are not required to have prior studies but their qualification is given by their fieldwork experience.

 (***) Workers that are required to have prior professional or technical studies or specialized workers to perform an activity.

Overview

The telecommunications sector has been experiencing an increase in mobile phone services and broadband connections while landline phone service coverage has declined over the last years, as users have been replacing landline phone services with mobile services. There are 132 mobile phone subscribers for every 100 inhabitants, which indicates that each Colombian has on average more than one SIM card. In addition, there are 51.3% mobile internet subscribers for every 100 inhabitants and 13.8% have broadband internet services. Internet coverage in the country is 52% in urban areas and 7% in rural areas, which according to the study conducted by the Open Technology Institute, broadband speed in Colombia is ranked 114th at an average speed of 3.25 Mbps.

https://www.cable.co.uk/broadband/

https://datos.bancomundial.org/indicator/IT.CEL.SETS.P2?end=2019&start=2019&view=bar

The main telecommunications providers in the Colombian market for services demanded by companies and households (phone, television and internet) are represented by Claro with 46.9%, Telefónica Movistar with 24.3%, Tigo-Une with 17.6% and ETB with 0.6%. Regarding mobile phone services, Claro also leads with 36.8%, Tigo-Une with 20.4% and Telefónica Movistar has 14.3% of the country's mobile phone subscribers.

(*) Claro, Movistar and Tigo Une currently have nationwide coverage.

Telecommunication Regulations

The Ministry of Information and Communications Technologies is responsible for telecommunications in Colombia regulated by the Superintendency of Industry and Commerce and the Communications Regulatory Commission. Article 33 of Law 80 of 1993 defined telecommunications services as those provided by legal entities, either public or private companies, to meet specific telecommunications needs of third parties within the national territory or abroad. Mobile phone and personal communication services are regulated by Law 37 of 1993 and Law 555 of 2000. Basic public switched local and extended local telephone networks and rural mobile telephone services are regulated by Law 142 of 1994.

https://www.mintic.gov.co/portal/inicio/ 

Emergency telecommunications are regulated by Resolution 4972 of 2016(*) in which guidelines and obligations are established to this end. According to the provisions of Section 14 of Decree 2434 of 2015(**), the Ministry of Information and Communication Technologies (MinTIC), and the National Unit for Disaster Risk Management Unit (UNGRD) are responsible for defining guidelines and requirements for the National Emergency Telecommunications Plan supported by the National Spectrum Agency and the Communications Regulation Commission within the limits of their competencies.

(**) https://www.crcom.gov.co/resoluciones/00005062.pdf

(*) https://www.mintic.gov.co/portal/604/articles-14372_decreto1.pdf

Telecommunications play a key role in emergency and disaster situations. Therefore, current industry regulations have addressed matters covered in Law 1341 of 2009, Decree 2434 of 2015 and the Communications Regulatory Commission Resolution 3066.

Existing Humanitarian Telecoms Systems

The United Nations System (UNS) in Colombia has 46 VHF repeaters in operation at a frequency of 96 MHz. HF network in Colombia uses 6 frequencies. United Nations Agencies use these communication networks with the support of UNDSS.

The government's UNGRD (National Unit for Disaster Risk Management) uses state-of-the-art radio communications and connectivity equipment and early warning systems, among other tools, to ensure quality, effectiveness and optimal coverage.

Internet Service Providers (ISPs)

The ISP Speed Index, which reveals the best internet service providers in the country, is led by ETB with a speed of 2.80 Mbps, followed by Claro with 2.73 Mbps in second place and UNE EPM Telecomunicaciones with 2.61 Mbps in third place. As for satellite internet, leading companies in the market are: BANSAT, Skynet de Colombia, Tughesnet, Axesat. All these companies provide internet, data, voice and video streaming services.

According to data reported by DANE, 99.6% of manufacturing and trading businesses in Colombia use the internet in their daily work, but only 73% have a website. On average, 68% of internet connections are by fiber optics or a dedicated channel, 25% by wireless connection, 19% by high-capacity information transmisssion, affecting transmission speed, and 5.9% by ADSL. 99% of the service sector companies use the internet, 95% have a website and 98.7% of these companies use a local area network (LAN).

https://www.dane.gov.co/files/investigaciones/boletines/tic/bol_empresas_2018.pdf

Mobile Network Operators (MNOs)

Mobile internet access is available on a subscription and on-demand basis. Subscription refers to customers with a fixed monthly fee for internet access services, while on-demand refers to any type of internet access service where no fixed monthly fee is paid.

Coverage in towns and roads is supported by GSM, 3G and 4G technologies providing voice, data and internet services. These three carriers have the largest number of mobile internet subscribers: Claro leads with 87% of customers, Movistar with 34% and Tigo Une with 22%, while the other 6% is shared with Uff, Virgin, Éxito and ETB mobile virtual network operators.

For more information, please check this website: GSM Association website

Disclaimer: Provider registration shall not imply any business relationship between the provider and WFP/Logistics Cluster, which shall be solely used as a determinant of services and capabilities. Please note, WFP/Logistics Cluster shall maintain impartiality at all times and not be in a position to endorse any comments on the suitability of any company as a reputable service provider.

Overview

Animal protein, fruits, vegetables and dairy products are mainly consumed by the population in Colombia. Most consumed staple foods are corn, wheat, rice and beans, wich are mostly produced locally. The country is self-sufficient to produce its own food. However, despite being a food-producing country, household food basket cost is too high compared to that of other countries in the region.

Food supply market is large in the country from wholesale markets to local markets in cities and neighborhoods, offering a large variety of products for household food supply through segment retailers and supermarket chains offering domestic and imported products.

In the case of processed and unprocessed foods such as wheat flour, sugar, rice, corn and beans, respectively, private food manufacturers and traders can meet domestic requirements by either supplying domestic production or importing from neighboring countries, generally speaking.

In Colombia, food imports continue to increase. Most imported foods are corn, wheat and soybean cake accounting for 79.5% of the total volume of imports, which corresponds to about 3.6 million tons of food. Significant participation is also found for imported products such as palm oil, cane sugar, cooked vegetables, milk, soybean oil, barley and cotton. As for exports, most exported foods are edible fruits, especially bananas, avocados and gulupa (purple passion fruit), accounting for 34.6% of total food exports, followed by fats and oils for 20.4% and sugar and confectionery for 17%.

Three major economic sectors can be found in the country, which are grouped into specialized and independent activities. The first economic sector refers to the agricultural sector supplying the demand for products such as potatoes, cassava roots, yams, tubers, tropical fruits and most vegetables. According to agricultural census data, Colombia has 40 million hectares of agricultural frontier, of which only 19% is currently used so more than 32 million hectares are still available to be converted into agricultural production lines to dynamize the countryside. However, many factors can affect productivity, such as the availability and access to certified seeds, few and costly sources of credit, poor technical support, production in marginal land for cultivation, insufficient storage infrastructure and limited market development.

The second sector is industry, which includes activities such as construction, one of the fastest-growing activities that has led the industry sector to be dynamic and superior compared to other important sectors in the country, such as mining and services.

The third sector is the service sector standing out for their contribution to the economy, in which the hospitality and tourism industry, transportation services, communications services, financial services, utility services and health promoting entities are the most representative sectors.

• http://www.dane.gov.co/
• minagricultura.gov.co
• http://www.fao.org/colombia/noticias/detail-events/es/c/1201133/

Description

In Colombia, a large number of companies and agencies offer a wide range of services. For lodging, a variety of hotels and accommodations are available at different prices according to the client's requirements. For electricity services, each municipality or department has companies providing such services. For financial services, a significant number of banks and financial entities are also available; and finally, a number of courier service companies operate at the departmental, national and international levels.

Lodging

Colombia has a large variety of hotels for different needs from a wide hotel infrastructure for tourists and business travelers to a wide range of housing properties for rent, furnished and unfurnished, for short- and long-term stays. Real estate properties can be contracted through real estate agencies through specialized sales and rental websites, especially in the main cities.

Electricity and Power

The electricity sector in Colombia is mostly dominated by hydropower generation (66% of production) and thermal generation (33%). However, the country's great potential in new wind, solar and biomass renewable energy technologies has been barely explored.

Law of 2001 intended to promote alternative energy lacks key provisions to achieve this objective, such as feed-in tariffs, and so far has had little impact. Large hydro and thermal power plants currently drive current expansion plans.

Power supply service in Colombia, measured by interruptions is 11.7% on average and 15.5% in the duration of interruptions per subscriber averaging 66 hours.

Source: https://es.wikipedia.org/wiki/Sector_el%C3%A9ctrico_en_Colombia

Financial Services

The Colombian financial system is made up of credit institutions (CIs), financial services entities (FSEs) and other financial entities, most of which have grouped together as financial conglomerates, with a presence both domestically and abroad.

In Colombia, a reasonable competitive market is in place, offering differential rates depending on their level of service and coverage. Most banks have recently turned to mobile banking to simplify all types of transactions through mobile devices so that users do not need to go physically to banks.

Bancolombia

Bancolombia is the largest private bank in the country in terms of assets, customers and nationwide coverage, with subsidiaries and affiliates in the region. The bank is part of one of the most important financial holdings in the country, Grupo Bancolombia, offering a broad portfolio of financial services.

Postal and Courier Services

Colombia has a large number of companies offering postal and courier services. Most are national companies, although some international companies also offer this service.

Money orders are the service through which payments are ordered to natural or legal persons on behalf of others through a postal network. Postal money orders can be physical or electronic. Some operators are: Efecty Ltda., Baloto, Éxito, Paga Todo, Su Red, Red Servi, Western Unión, Servicios Postales Nacionales S.A., Supergiros S.A., among others.

Printing and Publishing Services

The printing market is wide with all types of companies, some offer a high-tech portfolio such as digital printing and others are small printing shops with less sophisticated printing services. Some of these companies provide publishing services, while others do not. The publishing sector is composed of large, medium and small publishers, which have portfolios for publication in print or digital media.

Taxi Companies

A large number of cab companies have their own fleet or affiliate vehicles owned by third parties. The service is generally safe, but it is recommended to request it by phone or use different mobile applications of the companies authorized to operate the service.

Uber and Didi also operate in the main cities, however, this service is considered illegal by the government because these companies are not incorporated as transportation companies. However, this service has a good level of demand, especially in the middle and upper socioeconomic levels.

Special Passenger Transportation Services

The market of companies regulated by the Ministry of Transportation provides special passenger transportation services, which refers to vehicles with white license plates that are not classified as cabs or buses mainly used for school, business, and health sector transportation. This special passenger transportation is the best option for those seeking safety and reliability.

Vehicle Rental

This market is mainly dominated by multinationals such as Avis, Alkilautos, Rent a Car, among others, are located in the main cities of the country offering the rental of all types of vehicles according to customer needs.

Waste Management and Disposal Services

These services are provided by private companies or consortiums contracted by cities or municipalities through public bids, meeting high technical standards of collection, transportation and disposal in sanitary landfills.

Hazardous Waste Disposal Services

The treatment of hazardous and special waste from hospitals, laboratories, mining-energy exploration projects and any activity related to hazardous waste has acquired a relevant role in the business environment that must comply with the requirements set forth in local laws. For this purpose, a number of companies in Colombia are professionally and technically dedicated to this task, complying with the regulations on this matter.

Disclaimer: Provider registration shall not imply any business relationship between the provider and WFP/Logistics Cluster, which shall be solely used as a determinant of services and capabilities. Please note, WFP/Logistics Cluster shall maintain impartiality at all times and not be in a position to endorse any comments on the suitability of any company as a reputable service provider.

Colombia Waste Management and Disposal Providers

For information on Colombia Waste Management and Disposal Providers contact details, please see the following link:

4.1 Colombia Government Contact List

4.9 Colombia Railway Companies Contact List

Waste Disposal - Non Hazardous

Decree 1713 of 2002 and its amendments, regulates the provision of public disposal and integrated solid waste management in Colombia. It is the duty of the state to provide this service either directly or through companies contracted by public tender for it.
The Integrated Waste Management is the separation process in the source, collection, transportation, storage, treatment or disposal; in this last waste disposal occurs the process of isolating the solid waste that is not usable for the users. within this process are recyclers associations who are social actors and their main activity is collecting recyclable waste, such paper, cardboard, rigid and flexible plastics, which constitutes much of the solid waste disposed.
By late 2013, the waste disposal is performed by 72% of the municipalities in landfills, 15% in dumps, 5.2% in integrated plant, 4.6% in transitional cell, 2% in contingency cell, 1% in water bodies and 0.1% burns.
Landfills must be authorized under an environmental license granted by the Ministry of Environment, which gives according to its capacity, availability, shelf life or duration of the project. For 2013, 12% of the landfills were already zero lifetime, and about 43% life less than 10 years.

Waste Disposal - Hazardous

The management of these wastes is regulated by the Ministry of Environmental and Territorial Development, It consists of four stages:
Storage: This should correspond to a minimum, take all measures and conditions for prevention and control.
Transportation: To ensure minimal environmental impact and health workers, this operation must be established environmental practices, which should be controlled and monitored.
Treatment and disposal or utilization: For electrical and electronic arrangement, the government through resolution 1297 of 2010 provides, that companies producing this material should be extended responsibility and care for these residues, this is how many campaigns are by companies and environmental organizations for the disposal of such waste.
The disposal of waste oils are used as energy in the combustion process, in wood treatment, and immunization. However a lack of enforcement of regulations for good reuse, there is a black market for this waste, and / or improper handling and waste affects the environment.
Among the international conventions governing the proper management of hazardous waste during it life cycle, Colombia has approved or ratified the following: Montreal Protocol to phase out the use of substances that deplete the ozone layer; Basel Convention on the control of trans boundary movements of hazardous wastes and their disposal, adopted in 1989; and The Stockholm Convention on persistent organic pollutants, adopted in May 2001.
NATIONAL PLAN OF WASTEWATER MANAGEMENT: by the Ministry of Environment Housing and Territorial Development, this plan provides guidance for the development of local and regional activities to the proper planning, design, implementation and monitoring of the management of wastewater, whether industrial, agricultural, livestock origin, or domestic. However, by 2014, the water treatment in Colombia has become one of the most critical and growing environmental problems. The discharge of domestic wastewater and agricultural discharges are polluting the rivers, groundwater, wetlands and water reservoirs, causing serious damage to the environment and human health.