Strengthening logistics: strategic axis for competitiveness and the energy transition of Colombia

In a context of energy transition and increasing competitiveness challenges, this system faces significant challenges: the concentration in refining and the lack of robustness in the supply logistics.

The liquid fuel transportation and distribution system in Colombia constitutes one of the silent but essential pillars of economic development, energy security, and territorial integration of the country. Its scope goes far beyond the supply of gasoline and diesel, as it not only guarantees the supply of land, air, and river mobility but also represents a relevant source of fiscal income and a fundamental support for the competitiveness of different productive sectors by ensuring the mobility of people and goods, the operation of industrial sectors, and the integration of the national territory.

In the current scenario, characterized by global energy transition, the rise of new technologies, the need to decarbonize the economy, and the growing demand for efficiency, strengthening the logistics of fuel transportation ceases to be an operational issue and becomes a strategic public policy priority. Ensuring a modern, resilient, and efficient logistics system is essential to guarantee the continuity of supply, reduce supply costs, enable competition, and orderly accompany the transition to cleaner fuels.

Vulnerabilities and structural challenges

The logistics of fuel transportation in Colombia is based on a set of infrastructures and processes that connect national production (mainly refining) and imports with consumption centers. This network includes pipelines, storage terminals, land transport by tanker truck, river, and maritime transport. Its function is to ensure that the product arrives in the right conditions, in a timely manner, and at a competitive cost to retail distributors and large industrial consumers.

Despite its strategic relevance, the Colombian logistics system presents significant challenges:

Insufficient infrastructure and regional gaps

The country has a limited network of pipelines and strategic terminals, concentrated mainly in the center and north of the national territory. Large areas—particularly border and remote regions—depend almost exclusively on land transport by tanker truck, which increases costs, exposure to operational risks, and the likelihood of shortages in the face of contingencies.

High dependence on concentrated logistics corridors

The flow of fuels is channeled through a few transport corridors, which generates systemic vulnerabilities to blockages, natural disasters, public order incidents, or operational failures. The absence of alternative routes limits the capacity to respond to emergencies and reduces the resilience of the system.

High transportation costs and exposure to external factors

Land transportation, although it has been essential for sustaining supply, involves high operational costs, exposure to fluctuations in fuel prices, road safety risks, and environmental restrictions. These factors are passed on to the final price of the product, affecting the competitiveness of the sector and the economy as a whole.

Modernizing transportation logistics

Overcoming the identified limitations requires a comprehensive public policy vision that articulates planning, investment, regulation, and technology. The goal is not only to resolve operational bottlenecks but to build a robust, flexible, and future-oriented logistics system capable of supporting the transformation of the Colombian energy sector.

Below are the main strategic axes that should guide public and private actions in this area:

Diversification and multimodality of transportation

The diversification of transportation modes is an essential requirement to reduce vulnerabilities, improve efficiency, and expand territorial coverage. This involves strengthening the existing infrastructure of pipelines and developing complementary alternatives such as river, maritime, and rail transport, taking advantage of the geographical and logistical advantages of the country.

River transport, for example, represents a significant opportunity to connect producing and consuming regions through the network of navigable rivers, reducing costs and emissions. Similarly, strengthening coastal shipping can be key to supplying coastal and island areas, and rail transport can serve as a backup alternative for supplying the interior of the country, which is experiencing increasing consumption of liquid fuels.

The integration of these modalities with the land network and storage centers would allow for the configuration of a more resilient, flexible, and competitive logistics system.

Expansion of strategic and regional storage capacity

The expansion of storage infrastructure is essential to increase energy security and mitigate the impacts of logistical disruptions. Having strategically distributed terminals across the national territory reduces dependence on a few nodes, facilitates demand response in remote regions, and improves emergency response capacity.

Furthermore, strategic reserves allow for greater flexibility in managing supply and demand, smoothing market fluctuations, and facilitating the introduction of new fuels. In this regard, public policy should encourage both public and private investment in storage infrastructure, under clear and predictable regulatory and remuneration schemes.

Comprehensive planning and public-private coordination

Logistical modernization requires long-term strategic planning, aligned with national objectives of energy security, competitiveness, and energy transition. This planning must articulate policies on infrastructure, transportation, energy, and the environment, and be supported by robust monitoring and evaluation mechanisms.

Likewise, coordination between the public and private sectors is fundamental. The development of logistical infrastructure—due to its scale, costs, and investment horizons—demands collaborative models that allow for resource mobilization, risk sharing, and efficiency guarantees. Instruments such as public-private partnerships (PPPs) can play a central role in this process, provided they are accompanied by clear and stable regulatory frameworks.

Logistics and energy transition: a strategic link

Strengthening transport logistics is not only a present necessity but also an enabling condition for the future of the energy sector. As Colombia advances in diversifying its fuel matrix, incorporating biofuels, exploring hydrogen, and preparing for new technologies, the adaptability of the logistics system to different products, volumes, and demand patterns will be a decisive factor in the coming years.

A robust logistics system will allow for the orderly incorporation of cleaner fuels, facilitate their mass distribution, guarantee their quality, and ensure the competitiveness of new energy vectors against traditional ones. At the same time, it will help reduce the environmental footprint of the system by promoting less carbon-intensive modes of transport and optimizing resource use.

Keys to ensuring supply

The logistics of transporting liquid fuels constitutes the backbone of the Colombian energy system. Its strengthening is not only key to ensuring current supply and reducing costs but also to enabling the structural transformation demanded by the energy transition.

In this sense, and in coherence with these guidelines, the CREG Resolution Project 704 008 of 2025 is configured as a decisive step in the modernization of the liquid fuels logistics system in Colombia, by proposing a comprehensive regulatory framework that seeks to accompany and enable each of the mentioned objectives.

First of all, the regulatory proposal recognizes the need to diversify transportation modes and promote multimodality, by establishing rules that allow the efficient participation of different means —pipelines, river, maritime, and rail transport— within the logistics chain. This promotes a more rational use of the existing infrastructure, encourages the development of new routes, and strengthens the resilience of the system against contingencies.

Secondly, the project seeks to incentivize the expansion and efficient use of strategic storage capacity, by introducing mechanisms that stimulate the participation of interested parties in the construction, operation, and management of these facilities. This reduces dependence on concentrated logistics nodes and also facilitates the creation of strategic reserves that increase energy security and the capacity to respond to supply shocks, crucial aspects for market stability.

Finally, the regulatory initiative incorporates instruments aimed at strengthening comprehensive planning and coordination between the public and private sectors, by defining more precise roles for the different agents in the chain, creating more predictable conditions for investment, and promoting collaborative schemes that drive the development of critical infrastructure. In this sense, the project regulates and enables the construction of a conducive environment for long-term planning to translate into concrete, sustainable actions aligned with the goals of energy transition and competitiveness of the country.

The CREG Resolution Project 704 008 of 2025 represents a key public policy instrument that seeks to articulate planning, investment, regulation, and technology around the logistical modernization of the sector. Its comprehensive approach responds to the need for a proactive, resilient, and diversified logistics system, capable of responding to present needs and successfully accompanying the energy challenges of the future.

By: William Mercado
Expert Commissioner – CREG