Is the infrastructure Conundrum in Latin America and the Caribbean bridging the Gap for a Brighter Future ?

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Infrastructure inefficiencies in the Latin America and Caribbean (LAC) region pose significant risks to economic growth, competitiveness, and social development, particularly in the context of air travel and broader transportation systems.

Why?

LAC region invests significantly less in infrastructure than needed, averaging 2-3% of GDP annually compared to the 5-6% recommended to close the gap and meet Sustainable Development Goals (SDGs). For aviation, this translates to outdated airports unable to handle growing passenger

What is the impact on the ecosystem?

Insufficient capacity leads to congestion, delays, and higher operational costs for airlines. ACI World notes that despite a projected 776 million passengers in 2025, many airports lag in modernization, risking service quality and safety.

Existing infrastructure, including airports, suffers from inadequate maintenance and low service quality. In aviation, this means unreliable runway conditions, outdated air traffic control systems, and limited terminal facilities, increasing the risk of accidents and inefficiencies.

Aviation projects stall or face cost overruns highlight risks in large-scale concessions. Delayed upgrades to air traffic systems or runways increase operational risks and deter private investment.

With passenger traffic projected to grow 4.1% to 776 million in 2025 (ACI), unaddressed inefficiencies could bottleneck recovery.

LAC’s infrastructure inefficiencies, underinvestment, poor quality, weak connectivity, fiscal fragility, climate vulnerability, and high costs pose systemic risks to its aviation and economic ecosystem. Addressing these requires a shift from mere spending to efficiency-focused, resilient investments, a challenge as urgent today, March 2, 2025, as ever.

In Summary: Challenges, but also good opportunities to contribute.