MercoPress. South Atlantic News Agency

Chileans will manage Uruguayan wood chip port.

The Uruguayan government granted Chilean company Graneles S.A. the rights to operate for 30 years the port of La Paloma on the Atlantic coast as an outlet for its forestry exports, reported the Montevideo press.

The announcement was made last Friday in Rocha, 330 kilometers east of Montevideo by Public Works and Transport Minister Gabriel Gurmendez.

Graneles S.A. had made an original direct proposal to operate the port for wood chips and grains loading which forced the government to issue a public call for bids.

Finally the Chilean company was the only bidder, but the offer was not accepted by Uruguayan authorities who demanded improved conditions from Graneles S.A.

The port franchise is now subject to ratification by Uruguay's independent Accounting Office.

Graneles S.A. apparently has a 130,000-hectare (321,000-acre) forestry plantation in three counties, Maldonado, Rocha and Lavalleja, relatively close to La Paloma, with an export potential mainly to Japan of two million cubic meters of wood chips annually.

Operation of the port will require a first-stage investment of 25 million US dollars most of which in a 1,350 meters long chip loading belt extending out into the sea directly to the vessels.