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Port infrastructure proposals in Uruguay by regional investors exceed US$ 200 million
Monday, June 17, 2024 - 09:45
Puerto en Uruguay. Foto: Reuters.

The terminals, located in Soriano, will seek to capture cargo that transits the waterway.

Regional groups target Uruguay to develop port projects. There are two initiatives presented with investments of more than US$200 million. One of them is in a more advanced stage and has already obtained the concession for an area on the Uruguay River. The terminals, located in Soriano, will seek to capture regional cargo that transits the waterway.

The first project was presented by the company Woil SA, which is part of the Paraguayan group Zapag. This consortium is mainly dedicated to the import and distribution of fuel and, once established as a leader in that segment, decided to enter the pulp business.

For that, they partnered with the Swedish company Girindus Investments and created Paracel. The objective is the development of a pulp factory that will be installed in the Paraguayan region of Concepción.

The initiative in Uruguay proposes the construction of a multipurpose terminal with the intention of becoming a merchandise transfer station from river to sea mode, after storage in appropriate facilities.

For this purpose, it proposes the construction of a dock for the operation of oceangoing vessels and barges on the Uruguay River, and an associated space where the installation of a terminal for the collection of cellulose, another for liquid bulk and a third for multipurpose cargo is planned.

According to the project, the multipurpose terminal will enable the transfer of maritime cargo carried out by Cargo Line Paraguay (which is also part of Grupo Zapag). In the first instance, it will seek to channel exports of cellulose and renewable biofuels.

It is estimated that Paracel's pulp production will generate an initial operation of 1.5 million tons per year to later reach 1.8 million. Exports will be to the United States, Europe and Asia.

In the case of biofuels, the movement of 900,000 cubic meters per year is expected, which will be deposited in the terminal to be later exported to the United States and Europe.

A Paraguayan terminal

The investment planned by Woil SA exceeds US$ 150 million. According to the presentation, the project will position Uruguay as a pivot point of entry and exit to the region, also facilitating Mediterranean countries access to international markets, complementing the existing port system in Nueva Palmira, which is located about 10 kilometers from distance.

The company presented the project to the National Hydrography Directorate of the Ministry of Transportation (MTOP) and requested a fraction of the public waterway of the Uruguay River for the construction of the works and installation of the infrastructure necessary for the development of the terminal.

On May 16, the ministry granted Woil SA the concession for that fraction of the alveo, located in the Playa Agraciada de Soriano area.

Days ago, President Luis Lacalle Pou referred to the venture. “It is a previous initiative by Paraguayan investors. As they have a production that is growing and more and more volume, a funnel is generated and they depend more and more on intermediaries,” he commented.

He recalled that during a meeting with former president Horacio Cartes he told him that the Paraguayan port had to be on Uruguayan soil.

“They generally use barges, which can hardly cross the maritime line of Montevideo due to the waves. Any port to the west of Montevideo would be a good Paraguayan terminal,” he said.

The president mentioned that the objective is to have a port area with docks, esplanades, tanks and silos to provide services to merchandise entering or leaving Paraguay. “He who builds a dock, an esplanade, does not do it sporadically; It is not going to change ports. “Once it sets in, it stays,” he said.

The other port in Soriano

The second proposal was made by PTP Group, a holding company with Argentine capital founded in 2010 and with activity in Uruguay for almost a decade.

Official sources told the newspaper   that the group is one of the main operators in the waterway in the movement of grains and fertilizers from Bolivia, Paraguay, Brazil and Argentina. PTP offers stowage and unloading services for ships and barges and direct transhipments in port.

The project proposed for Soriano is the Arenal Port Terminal, with an estimated investment of US$ 80 million.

It proposes the construction of a multipurpose port for the operation of ocean and river vessels with the necessary equipment for the operation of export and import cargoes.

According to the presentation, it will have an operations dock with a draft of 42 feet (12.8 meters) to be in line with the depth of the waterway.

The land complex provides areas for different types of merchandise. It plans a terminal for cellulose storage of 66,000 square meters of cellulose and another for liquid bulk with 16 tanks with a capacity of 6,250 cubic meters for fertilizers, vegetable oils, biofuels and fuels.

It also provides a space for break bulk (cargo transportation system in pieces instead of containers) and another area for the implementation of an LPG (liquefied petroleum gas) storage plant.

According to the company, the project will generate an efficient and competitive terminal that will improve conditions for importers and exporters who during the harvest season usually suffer economic losses due to delays associated with dock congestion.

He adds that Uruguay will increase its cargo movement capacity with the possibility of generating new businesses through the waterway.

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