Amaszonas to begin regular flights connecting Montevideo with Santa Cruz, Bolivia

The Bolivian airline Amaszonas will offer flights connecting Montevideo with Santa Cruz de la Sierra, via Asunción del Paraguay starting sometime in the next few months. Three or four flights a week by Bombardier CRJ200 jet with a capacity for 50 people will connect the two cities.

Liliam Kechichian, Uruguay’s minister of Tourism and Sport, said the new connection is “a signal that we are still seeing a Uruguay with a lot of confidence in its tourism development” after the collapse of Uruguay’s flag carrying Airline Pluna in the middle of 2012. The minister added that despite the fact that Amaszonas is a small airline, they have taken “confident first steps and not an other work methodology. I think what they are doing is correct.”

The subsecretary of Tourism, Antonio Carámbula, said the Bolivian company has had meetings with various public agencies and private companies in Uruguay and has started the standardization process with Uruguay’s National Civil Aviation Department (DINACIA). He said the presence of Amaszonas “will stimulate business and tourist travel in region”.

Uruguay’s presidential website states that Amaszonas is a private firm “in the process of expansion” with domestic routes inside Bolivia as well as flights to Peru, Paraguay and Brazil. The new connection between Montevideo and Santa Cruz will reopen a route that was abandoned for nearly a decade after the collapse of Lloyds Aereo Boliva.

Since Pluna’s collapse, Uruguay’s government has been actively courting airlines in an attempt to regain air connections. Two years after Pluna’s close, in April 2013, Carrasco International Airport received some good news: Air France KLM agreed to operate out of Montevideo. A little time later, in July of 2013, Air Europa launched its first flight from Montevideo to Spain. Iberia has announced it will resume flights to Montevideo starting in September and Qatar Airlines is expected to begin flights to Montevideo soon as well.

This Uruguayan Business Reports news article is a translation of a news article that appeared in the Uruguayan newspaper El Observador. The original article is available in Spanish here. Uruguay Business Reports translation by Donovan Carberry.

Even without Pluna, Montevideo’s Airport will hit record number of passengers

Montevideo’s Carrasco Airport is expected to tie the record it set in 2011 for most passengers passing through

The 2012 bankruptcy of Uruguay’s flag carrier airline Pluna created significant concern within the Uruguayan government about the loss of air connections to Montevideo. After extensive negotiations, Uruguay’s executive branch chose to support a new company employing Pluna’s former employees to prevent losing the country’s air connections.

The head of Alas Uruguay (the name of the new project which was formally announced this month), Daniel Olmedo, told the International Air Transportation Forum organized by Uruguay’s Transportation Ministry that the country’s connectivity problem has not been solved. He added that when Pluna was operating Montevideo had 350 regularly scheduled flights a week. “Now there are 159; we have to recover the regular flights that were assigned”, he said.

However, data from Montevideo’s Carrasco Airport tells another story. Although, the number of weekly connections is down, Carrasco is about to tie its record for passengers passing through the airport.

When the company Puertas del Sur took over operations at the airport in 2000, the terminal area saw 860,000 passengers between arrivals and departures. By 2011 that number had almost doubled to reach a record 1,700,000 passengers.

The director of Corporación América (which owns Puertas del Sur), Eduardo Acosta, told the Uruguayan newspaper El País that Carrasco will reach that 2011 record this year, even without the national airline.

“In 2011 we had a vibrant Pluna with 13 airplanes flying every day. Today, without those airplanes we have achieved the same thing. How? With airplanes that are more full and with companies that are more profitable” said Acosta. He said that the airport is stable and emphasized the work done with the Transportation Ministry to bring about the arrival of Air Europa in Uruguay and the return of Air France.

Qatar Airlines and Turkish Airlines are currently in negotiations with the Uruguayan government on doing business in the country.

Nevertheless, Acosta said that the airport still has not recovered many of the passengers transported by Pluna who connected through Montevideo. He also said that the newly formed company, Alas Uruguay, has a excellent opportunity to capture those customers. “Between 300,000 and 400,000 passengers who today do not have Carrasco and that [Alas Uruguay] could recover, because they are passengers are in the region and need to connect through Montevideo”, Acosta said.

At the International Air Transportation Forum, Acosta spoke on Alas Uruguay saying “there are many things that businesses cannot do alone; they need the state”. He added that Alas Uruguay will require government help. Nevertheless Olmedo, the head of Alas Uruguay, during his presentation expressed that those behind the new startup air company are not in favor of “protection” and that the company wants to compete with other companies in the sector.

Uruguay’s Transportation Minister Enrique Pintado, said that Alas Uruguay will receive government support. He said that the project has potential, but they need to identify weaknesses and establish a good strategic plan.

This Uruguayan Business Reports news article is a translation of a news article that appeared in the Uruguayan newspaper El País by Maximiliano Montautti. The original article is available in Spanish here. Uruguay Business Reports translation by Donovan Carberry.

Bolivia May Use Uruguay’s Nueva Palmira Port for Mining Exports

Despite the current logistics issues at the Uruguay’s Nueva Palmira port, it is one of the fastest developing ports in all of Mercosur. Nueva Palmira’s advances in infrastructure and shipment volumes, has led the Bolivian government to begin talks with Uruguay about using the port as an outlet for Bolivian goods into the Atlantic.

The head of the Bolivian Ports Administration, reported that the organization had inspected Nueva Palmira to evaluate using it for export’s from Bolivia’s mining sector.

Bolivian mines currently export from the Chilean port of Arica but production increases have forced Bolivia’s government to seek alternatives. Nueva Palmira is seen as the best option.

The President of Uruguay’s National Port Administration (ANP) emphasized that the project is not new and Bolivia has been considering this possibility since 1976, although it much is closer to becoming a reality this year.

This Uruguayan Business Reports news article is a translation of a news article that appeared in the Uruguayan newspaper Todo Logistica. The original article is available in Spanish here. Uruguay Business Reports translation by Donovan Carberry.

Soy and Grain exports from Nueva Palmira Port are experiencing 30 day delays

Map showing Nueva Palmira, Uruguay’s principal port for soy exports. Nueva Palmira is now experiencing delays of up to 30 days to load soy exports

Soy and grain cargo going through Nueva Palmira is experiencing significant delays in loading. In some cases cargo has been delayed 30 days.

The president of Uruguay’s National Port Administration (ANP), Alberto Díaz, told the Uruguayan newspaper El País that theses delays are caused by the timing of ships arriving into Nueva Palimra port to load merchandise. “The sale of grain for export has unique characteristics”, said Díaz.

He explained that producers sell their grains in July, for example, but the boats charged with transporting them don’t arrive until the end of the month. “The seller sells their produce but the boat arrives in the last few days of the month. The seller is inside the deadline to comply with the request, but it generates a delay in the cargo for several weeks.” Díaz said. Regionally these delays are being seen mainly in Brazilian ports but also in Argentina.

“What we should do is try to improve access and cut down the time frames and find some benefits for the export sector” Díaz added. The ANP, which he heads, is in charge of coordinating all aspects of the supply chain passing through the port.

ANP is studying the possibility of loading merchandise at the floating station Punta del Arenal, located in the River Uruguay north of Nueva Palmira, to bypass the delays. ANP would only permit this option in the case of significant delays. If there weren’t delays at Nueva Palimra and exporters still wanted to use the floating station, they would face additional charges.

The majority of the grain being exported through Nueva Palmira is soy. All these exports are connected which is an important aspect of the harvest said Díaz. “Everyone wants to be the first to ship because that is when it [soy] has the highest value, later on the market begins to change and it trades at a lower price” Díaz explained.

This Uruguayan Business Reports news article is a translation of a news article that appeared in the Uruguayan newspaper El País. The original article is available in Spanish here. Uruguay Business Reports translation by Donovan Carberry.

Lobraus to build 21 story office tower and logistics facility in the port of Montevideo

Simulation of the proposed Lobraus Tower in the port of Montevideo’s free trade zone

The logistics company Lobraus is expected to begin a major development project within the port of Montevideo’s free trade zone by early in 2014. The project will include a 21 story office tower and a 30,000 square meter logistics depot.

The logistics company Lobraus was the only company that bid on a public tender to improve the port issued by Uruguay’s National Port Administration (ANP). The ANP is in the final stages of reviewing Lobraus’ proposal and is expected to approve it in the next few weeks.

Lobraus had originally presented the undertaking to ANP in 2007 as a private project but now they will operate a public concession. The proposed Lobraus tower would be the first high-rise building in the port. It is predicted to house offices for more than 250 companies, along with restaurants, a convention center and auditoriums.

The building will be 17,000 square meters and utilize the latest generation technology to guarantee security and reduce its environmental impact. There will be four parking levels.

The tower will be complemented by the largest storage and logistics facility in any Uruguayan port. The proposed facility will be able store 800,000 cubic meters.

The total cost of the project is predicted at $55 million USD. 70% of the investment will be financed with bank loans and the remaining 30% will come from development funds and private sources. Construction is expected to take three years.

The port facility will be constructed first and then the tower. Lobraus will receive a 30 year concession for the area being constructed as well as additional space attached to the development. The concession begins

The project will be built within the port’s free trade zone, which grants tax benefits to business located within it. Additionally, a foreign company can open an office within that section of the port without creating an Uruguayan company.

The idea behind the project is that foreign companies will locate their offices within the tower and store their merchandise at the depot before it is distributed or sold in the region.

Although Lobraus was founded in the United States in 1989, today it is headquartered in Montevideo with offices in the ports of Montevideo and Punta Sayago. It also has offices in the United States and Brazil. The company is already involved in the construction of several other logistics depots throughout the region.

This Uruguayan Business Reports news article is a translation of a news article that appeared in the Uruguayan newspaper El País. The original article is available in Spanish here. Uruguay Business Reports translation by Donovan Carberry.

BQB airlines is negotiating with Pluna auction winner Cosmo to use those jets in Uruguay

The Argentinean businessman and CEO of BQB Juan Carlos López Mena is proposing to use Pluna’s former airplanes to restore international service to Montevideo

The Argentinean entrepreneur Juan Carlos López Mena, owner of the Buquébús ferry and airline BQB, has begun negotiations with the Spanish company Cosmo over using the seven former Pluna jets they purchased at auction Monday Oct. 1 for $137 million USD.

According to a BQB press release, Mr. López wants to use the airplanes to cover Uruguayan air routes left vacant after Pluna’s bankruptcy.

The press release stated, “BQB Airlines began negotiations with Cosmo Airlines over using the seven CRJ 900 Bombardier airplanes that the Spanish company purchased in the recent Pluna trust auction in Uruguay”.

Mr. López, the CEO of BQB, explained his motivations, “We want to prioritize Uruguay’s connection needs and because of that we are talking with Cosmo, who acquired these airplanes at auction, about whether these airplanes can remain in the country and if they can create the conditions for new Uruguayan flag carrier. That is what we are working for.”

The plan also proposes hiring former Pluna employees. It would restore Montevideo’s air connections with the Brazilian cities of San Pablo, Río de Janeiro, Porto Alegre, Curitiba, Belo Horizonte; as well as Chile and Paraguay.

“The idea is to begin flying to these destinations in by the 15th of December.” Announced the CEO of BQB.

This Uruguayan Business Reports news article is a translation of a news story that appeared in the Uruguayan newspaper El Observador. The original Spanish language news article is available here. Uruguay Business Reports translation by Donovan Carberry.

 

Martin Garcia Canal update: Uruguay will receive Riovia’s bid, Argentina will not

After a tense week in Uruguay’s relations with Argentina over dredging the Martín García canal, the delegates of the Río Plate Administrative Commission meet Monday 7.30 to review the proposals from business interested in taking over maintenance of the canal.

Sources within the Uruguayan foreign ministry told La Diaria that Argentina’s unilateral decision to exclude Riovia from the tender exhausted the patience of the Uruguayan authorities, who understand that the Argentinians “are desperate” and they want “to wash their face”.

According to the Foreign Relations Ministry, Uruguay has always acted with “transparency and seriousness” and it was Argentina who asked for an audit and who claimed that they would make CARP’s minutes public, in which they discussed the alleged bribe, and then later did not release them because the same Argentinean government did not permit it.

“Now they are desperate to clean their faces and expunge guilt associated with Riovia”, reported the foreign ministry source.

It will be Monday at 2:00pm when both CARP delegations meet in Buenos Aires to open the bids from the four prequalified canal maintenance companies. The President of the Uruguayan delegation will also receive Riovia’s bid, although Argentina will not.

Days after the Argentinean foreign minister Hector Timerman sent a letter to his Uruguayan counterpart, Luis Almagro informing him that the Argentinean government had decided to revoke Riovia’s prequalification following the Uruguayan Court of Auditor’s investigation into alleged bribery by the firm.

Uruguay understands that arbitrarily excluding Riovia from the bidding could expose both countries to multi-million dollar lawsuits under treaties signed by both Uruguay and Argentina for the protection of investments.

Riovia has already announced that it is studying how to react to being excluded from the tender.

Although Argentina has proposed suspending Riovia from bidding today, they know the Uruguayan delegation will not permit it. Argentinean representatives will not review Riovia’s proposal but the Uruguayan delegation will in order to “cover themselves” in the case of an eventual law suit.

This Uruguay Business Reports news article is at translation of an article that appeared in the Uruguayan newspaper El Observador. The original article is available here. Uruguay Business Reports translation by Donovan Carberry.

SUPRAMAR inaugurates a new warehouse in the Port of Montevideo

Supramar, a company specialized in storage, regional distribution of goods, and logistics consulting services continues to grow and in the next few days will outfit its second warehouse in the port of Montevideo. Since 1994, Supramar has developed its activities in international trade across South America, from storage to delivery, always maintaining strict security up to international standards. This warehouse, located in one of the oldest buildings in the port, it dates from 1880 and is a historic landmark, has been restored and put back into service by Supramar. The inauguration ceremony is scheduled for September.  The inauguration ceremony will include the heads of the National Administration of Ports, special guests, and business leaders from within the sector.

This Uruguay Business Reports news article is a translation of an news story that appeared in TodoLogistica. The orgininal article, in Spanish, is available here. Uruguay Business Reports translation by Donovan Carberry.

Ancap authorizes Dusca to issue $30 million in corporate bonds

At the latest Dusca director’s meeting Ancap authorized a corporate bond issue up to $30 million USD although the company does not have to issue to the entire amount.

The money will be added to Dusca’s working capital and to new investment projects such as the construction of logistics centers in Conchillas and Nueva Palmira, both in Colonia.

Dusca is planning on constructing large service stations with extensive parking lots for cargo vehicles and food courts along the route between the port at Nueva Palmira and the future wood pulp plant.

Up till now, Dusca previously obtained financing through Uruguayan banks, but the authorities wanted to enter the corporate bond market in order help it develop in Uruguay.

Currently, Dusca is studying how to regulate the purchase of its bond issues since there is an interest in allowing small investors to purchase the bonds and ANCAP does not want all the bonds to be purchased by the state-run pension fund company, AFAP

Additionally, they are waiting to see if the Banco Central del Uruguay will be authorized to begin making these types of purchases.

While the bond issue will stimulate Uruguay’s stock market, Dusca will only be issuing financing and not listing the price of shares on the exchange as had been announced by the president last year.

At that time, the government stated it wanted state businesses that are private companies, such as Dusca, list between 20% and 30% of their shares on the Bolsa de Valores. The government’s objective was to increase transparency in the management of state-owned businesses.

Dusca indicated that the business is doing well financially although it lamented the recent labor conflict. Authorities said that it still has not recorded the losses due to the labor strike but ruled out that this could affect the company’s end of the month numbers.

This Uruguay Business Reports news article is a translation of a news story which appeared in the Uruguayan newspaper El Pais. The original article is available here. Uruguay Business Reports translation by Donovan Carberry.

Uruguayan and Brazilian presidents agree on a new bilateral integration system

Mujica and Dilma met at noon Thursday in Río de Janeiro. They agreed to draw up a new exchange protocol.

Uruguay’s President José Mujica met with his Brazilian counterpart Dilma Rousseff this Thursday. They agreed to establish new rules for trade and exchange policies inorder to strengthen regional and bilateral integration. The presidents met at noon in the Riocentro complex in the tourist capital of Brazil where the Río+20 summit on sustainable development policies was taking place.

Based on the agreement, the foreign ministries of both countries will create technical and political working groups to draw up a free exchange treaty for goods, services and people between Uruguay and Brazil. They will also work on a bilateral energy treaty to cover commercialization, regulation and planning within the electricity grid. Additionally, the teams will work on the integration of the naval industry and on wind energy, gas and petroleum links.

The Uruguayan delegation in Río said Thursday that they understood the infrastructure integration agreement to confirme Brazil’s promise to build a new port on the Yaguarón River, as well as renovating the Maua bridge and spurring the development of new railroad and water way connections between the two countries.

The heads of Uruguay and Brazil established that the new integration scheme’s first evaluation will be on December 2012.

Uruguayan government is very pleased with the advances made during the meeting between Mujica and Dilma. Members of the government highlighted that the host president received her Uruguayan counterpart during the middle of the difficult Rio summit negotiations. Rousseff received around 40 bilateral requests from the 193 delegations participating in Río+20.

Mujica left for Montevideo Thursday night and arrived early this morning. Today will be another day of intense meetings on trade and policies, this time with Chinese Premier Wen Jiabo.

This Uruguay Business Reports news article is translation of an article that appeared in the Uruguayan newspaper El Observador. The original article is available in Spanish here. Uruguay Business Reports translation by Donovan Carberry.