MercoPress. South Atlantic News Agency

Uruguay will invest 53 m USD in Montevideo port

Uruguay will upgrade the Port of Montevideo facilities to enhance the port's efficiency and reduce maritime and river transportation costs with support from a 40 million US dollars loan from the Inter-American Development Bank.

The Port of Montevideo is Uruguay's main port and because of its location it is centrally positioned in Mercosur. The port ranks fourth in the region in terms of container traffic after Santos in Brazil and Buenos Aires and Rio Grande in Argentina. It aims to consolidate itself as the logistical centre for regional distribution. Montevideo is the main hub for refrigerated containers in the region and its operations have a strong trans-national impact, as more than half of its activity involves the trans-shipment of containers from neighbouring countries. More than 70% of the volume of Uruguay's total exports and imports move through the country's maritime and river transportation system. The Port of Montevideo will expand its cargo handling capacity by building a new multipurpose wharf and deepening the access channel to allow access to larger vessels. These improvements will enhance the port's efficiency and reduce maritime and river transportation costs. The National Ports Authority, an autonomous agency of the Ministry of Transportation of Uruguay, will carry out the project. The IDB loan is for a 25-year term with a 4-year grace period, at an adjustable interest rate. Local counterpart funds will total13 million US dollars.