GEODIS and Ecopetrol: A Logistics Powerhouse

Two years ago, Colombian state energy firm Ecopetrol teamed up with global logistics provider GEODIS to launch a pioneering, end-to-end supply chain integration model. In an exclusive for Breakbulk, the two companies come together to share how they did it.

After several months of working through a Request for Proposal (RFP) process, Ecopetrol and GEODIS Colombia signed a long-term contract in 2023 to implement an innovative and cutting-edge logistics integration model. This model covers end-to-end supply chain logistics and pre-contractual management services, breaking new ground within state-owned oil and gas enterprises.

As a leading global logistics provider acknowledged for its expertise across all aspects of the supply chain, GEODIS has teamed up with Ecopetrol, the largest company in Colombia, to collaboratively develop a robust logistics model that can be scaled across other companies within the group. The objective was to transform Ecopetrol’s supply chain management and logistics culture into one that is more predictive, proactive, integrated, efficient and competitive – a strategy that has now become a reality.

“It was all about collaboration,” said Carlos Manuel Palacios, managing director of Colombia at GEODIS, detailing how the state-owned company identified key areas for improvement – such as automation and systems integration – which sparked a year-long dialogue. Throughout that period, the two sides worked closely to create a tailored solution, which Palacios said involved a “complete supply chain analysis.”

By aligning Ecopetrol’s needs with GEODIS’ products and services, the groundwork was laid for rapid progress in the first year and even better results in the second. By 2024, the collaboration had grown so robust that the teams were holding more than 70 operational meetings a year supported by more than 150 direct and indirect employees dedicated to this project, Palacios said.

“Our remarkable progress in optimizing logistics processes stems from the unwavering commitment of both teams to clearly communicate their needs and goals and collaboratively work towards achieving them. This partnership is a testament to our shared dedication to excellence,” said Julian Mora, supply chain coordinator at Ecopetrol.

A Logistics Integrator

The team-driven approach ultimately led to a unique solution that involved GEODIS splitting its services across three distinct contracts.

These included a long-term 4PL agreement where GEODIS was charged with handling Ecopetrol’s entire logistics supply chain, a 3PL forwarding operation focused on project cargo, and a pre-contractual management contract centered on expediting approvals. Each service is articulated by separate GEODIS divisions with their own dedicated teams operating from the integrator offices in Bogotá.

For the 4PL operations – managed by Palacios – GEODIS has connected all the logistics players into a single smart platform, offering Ecopetrol real-time, end-to-end visibility of the entire supply chain, from tracking delivery milestones to measuring CO2 emissions.

“We measure every aspect of the end-to-end supply chain in our platform, leading more than seven 3PLs,” Palacios said. “We have the teams to support Ecopetrol and to respond to any request they have but also adding value to the 3PLs to ensure operational and business excellence.”

For Ecopetrol, developing a 4PL model brought significant advantages. “One of the key benefits was having an independent representative to control and monitor all the 3PLs,” Mora said. “The 4PL integrates and monitors the entire logistics operation, identifying new strategies with each 3PL to control costs and improve the delivery of critical materials.”

As a fundamental element of the company’s corporate social responsibility and sustainability efforts, the integrator, together with international 3PL provider GEODIS, measured CO2 emissions under scopes 1, 2, and 3 across each phase of the logistics process using advanced technology. This enabled the development of effective decarbonization strategies. Additional efforts have focused on raising employee awareness of environmental impacts, integrating CSR into IT services, and creating tools to analyze and report key metrics such as CO2 emissions.

Record-breaking Moves

While the 4PL side has concentrated on planning and monitoring Ecopetrol’s supply chain operations, the GEODIS 3PL team has proved its mettle by doing what it does best – navigating significant logistical challenges to transport massive project cargoes across Colombia.

In early March, GEODIS achieved a record by transporting a heavy cargo down the Magdalena River, Colombia’s main inland waterway. The milestone move supported a critical energy project aimed at ensuring the continuous production of gasoline in the country. “These great milestones require perfect integration and great collaboration between Ecopetrol, the 3PLs and the integrator,” said Luke Mace, global vice president of project logistics at GEODIS.

GEODIS managed the complex operation with a multimodal solution combining ocean freight, barge transport and trucking. The shipment, which moved through the terminal from Cartagena to Barrancabermeja, included oversized components that demanded flawless execution. The project also involved major civil works and temporary road closures to accommodate one-way traffic.

In an earlier project, GEODIS’ troubleshooting skills were put to the test during the delivery of 12 oversize and overweight pieces to southeast Colombia. Originally planned as an overland move via the la Orquidea bridge in Boyacá – the only viable route for such heavy freight – the project was thrown into crisis when the bridge presented certain restrictions.

With the deadline looming, the forwarder pivoted fast, chartering an Antonov AN124 to complete the time-critical delivery by air. “Over an eight-day period, we executed 13 flights – one long-haul and 12 domestic trips – all during Christmas week,” Mace said.

Exploring New Sectors

For a major shipper like Ecopetrol, which invests billions in industrial projects, having a logistics provider with the right expertise, experience and resources is vital. In Colombia alone, more than 150 GEODIS employees – including engineers, supervisors and project directors – are dedicated to industrial projects and 4PL solutions.

“When we have a new company working with us, the first thing we say is they’re not just another contractor,” Mora said. “We’re looking for strategic partners who can help us improve our processes. It’s about more than delivering a service – it’s about dialogue, finding new ways of doing things, and real collaboration.”

As Colombia steps up its industrialization efforts, forwarders, shippers and carriers are positioning themselves to support the nation’s expanding project landscape. “We see a shift toward moving regional logistics structures to Colombia, and to Bogotá in particular,” Mace said. “It’s a growing country with smart talent, a big market and competitive costs.”

In March, GEODIS inaugurated a new office in Bogotá – its largest worldwide for project logistics. The launch of the new base comes as Ecopetrol seeks to diversify beyond oil and gas into new segments such as solar, wind and hydrogen, capitalizing on Colombia’s abundant natural resources. Here, GEODIS is leveraging its expertise to meet Ecopetrol’s evolving needs to support energetic transition.

“There are lessons and business practices learned outside of Colombia that we can bring to the table,” Mace said. “That’s the advantage of having a leader in logistics and transportation solutions supporting Ecopetrol.”

GEODIS will be exhibiting at Breakbulk Europe 2025 on 13-15 May in Rotterdam. Meet the team at Stand 2F31.

TOP PHOTO: GEODIS chartered an Antonov AN124 to transport 249 components to southeast Colombia. Credit: GEODIS