No doubt, Canadian companies are leading the way in clean technology. In fact, it’s one of the fastest growing industries in Canada with many companies ready to meet the growing global demand for ‘green’ alternatives.
Latin America is a region that is especially interested in Canadian cleantech solutions because of the long distances between cities, and the monstrous inner city traffic. This is where fuel saving devices are key. Canadian solutions such as an aerodynamic truck add-on, air deflector, trailer skirt, fuel sensor or accelerator controller, can save these commuters money and reduce their carbon foot print. Some of these technologies are more efficient with long distance travelling, while others are most efficient in traffic jams.
Let’s take a closer look at Chile, a country that GoExport thinks should figure among the top priority markets for Canadian companies. The high prices of diesel, the large travelling distance, the strict emission regulations as well as the ease of doing business, all indicate that this market has a lot of potential.
Diesel prices and consumption
While we may be seeing lower fuel prices over the last couple of months, diesel prices haven’t been falling like gas. Even with a lower cost, the price of diesel is still a big impact to regional business. Since 2002 the price of diesel in Chile has more than tripled with an increase of over 20 percent between 2010 and 2012 alone. Geographically, Chile stretches along the coast for more than four thousand kilometres. For any business that relies on transportation in the country, the cost of fuel can have a huge impact on the business bottom line. In 2010, according the Chile Transporte, fuel expenses represented 36.3 per cent of all consumable expenses such as tires, lubricants and maintenance fees.
Diesel Consumption Regulations
The Chilean Ministry of Transport and Telecommunications, as well as the Ministry of the Environment enforces strict standards for emissions on their highways. Since 1990 light and heavy duty trucks have been required to be registered for in the national registry by date, but also by the geographic region where they operate. Any vehicle weighing 3,860 kg or greater must have a coloured sticker indicating their registration in order to be allowed to legally operate. This began to be strictly enforced nationwide in 2006. This is a prime opportunity for fuel and emission reducing technology.
A bright future for partnerships
Chile isn’t the only country in Latin America facing challenges in reducing emissions and fuel costs. These are challenges faced across the continent, and the world. As we’ve seen, countries like China are heavily also investing in clean technology and reducing the carbon emissions as well. With this ongoing trend, Canadian clean technologies will be helping to clean up traffic jams around the world in no time.
GoExport’s mission is to develop export sales on behalf of SMEs in Mexico, the Caribbean and West Indies, Central America and South America. GoExport is also an accredited consultant of the Business Development Bank of Canada (BDC) and a partner of Expansion Québec in São Paulo.
For more information contact EDC.