MercoPress. South Atlantic News Agency

News from Punta Arenas

Headlines:
Tourist Center for Punta Arenas; Marches against privatization; Fourth methanol plant; Police assistance from Germany; Drastic cost cuts in oil industry

Tourist Center for Punta Arenas

An ambitious 36 million US dollars project to develop Punta Arena's port area was presented last week by the operators of the city's port facilities, Empresa Portuaria Austral, EPA. The project announced on the fourth anniversary of the company, includes a major reception center for the cruise tourist industry with all the necessary infrastructure plus a convention hall and the urban development of the adjoining blocks. According to EPA's CEO Mr. Fernando Castillo, the tourist center, convention hall and a gastronomical promenade will be developed on the north side of the port, while towards the south the intention is to attract real estate operators willing to invest in high rise apartments buildings of eight floors. "In the immediate port area extensive roofing has been planned to shelter passengers, boarding lounges, Customs, Police and Naval offices, plus a protected terminal for tourist coaches visiting Punta Arenas", indicated Mr. Castillo adding that the purpose of the plan is "to project Punta Arenas as a tourist hub for Patagonia and Antarctica". As to when the project will be launched Mr. Castillo mentioned next December and revealed that several companies involved in the tourist and building industries have already expressed an interest in "EPA's star program". "We're anticipating a future strong demand from the cruise industry, and we are also convinced visitors to Punta Arenas must extend their stay in our area beyond the current average of eight hours, becoming real tourists", stressed Mr. Castillo. EPA officials also mentioned that the company is already involved in another significant project, the 30 million US dollars extension of the Santos Mardones jetty and adjoining facilities, that are targeted mainly for the fisheries industry.

Marches against privatization

Punta Arenas residents are preparing two big marches this month to protest the privatization of the local water and sewage systems currently managed by the national government. The protests are organized by the non government entity Front for the Defence of Magallanes Rights, and are scheduled for next August 15th. and 28th. "Although there's a political decision to privatize Empresa de Servicios Sanitarios de Magallanes, ESMAG, in line with what has happened in many cities in the rest of Chile, we are convinced we must protest and express our disagreement", said Mr, Julio Antisoly a member of the Front. "Besides, today this is happening with ESMAG, and tomorrow it could very will be ENAP (oil government company)", added Mr. Antisoly recalling that privatizations in Chile have meant "redundancies, outrageous increases in public utility rates and an overall damage for the local community since private companies usually move their offices and their purchasing, and their profits to Santiago or overseas". The non government organization also has the support from the four regional parties that at national level belong to the ruling coalition. In a joint release the four parties indicate that "a concession of such magnitude for Magallanes needs a previous in depth assessment of the local situation, that is not necessarily similar to that at national level", and therefore "it's a moral and political obligation to stand against the concession of ESMAG, and in this context we call upon the people of Magallanes to join the Front for the Defence of Magallanes Rights activities" The release emphasizes that it's preferable that ESMAG's property and management be handed over to the regional government of Magallanes, "to ensure that the profits of the company are spent in the area", and to help with regional development, "that is also one of the national government's priorities".

Fourth methanol plant

A fourth methanol plant, costing an estimated 250 million US dollars and to be supplied with Argentina natural gas is to be added to the large Cabo Negro complex in the vicinity of Punta Arenas. The operation involves natural gas from the Austral basin in Santa Cruz province that will be exported to Chile in the framework of a 2001 agreement between Sipetrol Argentina and Methanex Chile, with a daily supply of 200,000 cubic meters of gas during eleven years until completion of a total volume of 854 million cubic meters. A pipeline will transport the natural gas from the deposits to Dungenes Point in Santa Cruz, next to the Chilean border, and according to the contract the gas supply should be available by the last quarter of 2005. However Methanex has negotiations pending with other four suppliers before the new plant begins to be built. "We're talking of 250 million US dollars, and therefore we must have full guarantees of a constant and steady supply of natural gas from Argentina", underlined Mr. Rodolfo Krause, Methanex Chile General Manager.

Police assistance from Germany

Reinhard Bromm, Chief of Special Operations from the Hamburg Police in Germany, held several meetings with the Magallanes Regional Office of Carabineros, Judges, Prosecutors and Punta Arenas attorneys to assess preparations for the incoming new Penal Procedure Code to be applied as of next December. Mr. Bromm has been in Chile for several weeks as part of an assistance program between the German Cooperation Agency and the Chilean Judicial branch, given the similarity of the new Chilean system with the German code. During a seminar Mr. Bromm described the working relation between the Police and the Prosecution, how this is interpreted in the framework of the new code, and illustrated his conference with his own experiences with the police in Germany. "The main purpose of the new system is to ensure all freedom rights for all citizens, including those of the delinquents or who have committed a crime", said Mr. Bromm indicating that "as in Germany I believe some people in Chile believe it's a lenient code, but this is the only way to guarantee a peaceful co existence under the rule of the law and a truly democratic system". Mr. Bromm said that Hamburg with a population of 1,8 million has a law enforcement staff of 10,000, of which 6,000 are police agents, 4,500 working mainly in preventive actions, 1,000 non uniformed and 500 in the maritime branch. Burglary is the most common crime in the German autonomous port city.

Drastic cost cuts in oil industry

Chile's oil company, ENAP, confirmed that its operations in Magallanes Region must undergo a significant 25% cost reduction, if the regional Magallanes office is to survive in the exploration and production areas. ENAP's CEO in Punta Arenas Mr. Raúl León said that at the current estimated level of investment, the "exploration and production operations will become non profitable as of 2017", and therefore the need for the cuts, "now". However this is not extensive to other activities of the company. Mr. León also pointed out that the 25% cost reduction does not necessarily mean the sacrifice will be entirely in the employment area. "It all depends on the new operations we can manage to generate; with the 25% cost reduction before 2005 we can expect to extend that horizon until 2023", added Mr. León. ENAP's officials were forced to a rare public appearance following the disclosure in the local press of some details of a report by an American consulting company suggesting a drastic reduction of operations given the rapidly declining oil reserves in Magallanes Region. The report however is optimistic about potential natural gas resources in the area, given the closeness to Argentine deposits, but also warns that these are long term investments, "with virtually no return in the short and medium term". "The report gives us a picture of the current situation of ENAP, and it was done by an experienced, impartial consulting company, and its suggestions are working papers", underlined Mr. León. But ENAP's CEO admitted that in the coming four years, investment in exploration in the area is only 106 million US dollars and that the Magallanes office long term financial policy is to reach a stable balance in the other activity fields of the company.