Paraguayan Firms Plan Sea Access Through Uruguayan Ports

In February 2021, Uruguay’s President Luis Lacalle Pou and Paraguay’s then-President Mario Abdo Benitez talked about sea access.

They discussed how their countries could help each other. Landlocked Paraguay needs a route to the sea for its exports. Uruguay has available coastlines for this purpose.

Fast forward to August, President Lacalle Pou had good news. Paraguayan businesspeople bought land in Uruguay’s Soriano department.

They aim to develop a sea outlet for Paraguay. Two groups have specific plans. They need government approval to proceed.

The first group is PTP, a company already operating in Uruguay. They plan to invest $55 million initially.

They want to build a versatile port with a large free zone. This new port could handle different types of ships and create 125 jobs.

The second group, Cargo Line from Paraguay, has a bigger plan. They are planning to invest between $200 and $300 million.

Their focus is a terminal near the city of Dolores. This terminal will handle multiple types of cargo, including cellulose and biofuels.

Both companies aim to complete their projects by the second half of 2026. Uruguay hopes to become an essential sea gateway for the region through these projects.

Meanwhile, Paraguay sees an opportunity for much-needed sea access.

Background

Historically, landlocked countries like Paraguay have faced challenges in accessing global markets.

Being without a coastline makes exporting and importing goods expensive and complicated. In the past, Paraguay mainly used Argentine or Brazilian ports for this purpose.

Uruguay has emerged as another potential partner. The country is strategically located with coastlines along key waterways.

These recent port investment plans build upon a longstanding relationship between Uruguay and Paraguay.

They also mark a significant shift towards diversifying Paraguay’s export routes.

Overall, these developments could be game-changing for the economies of both countries, promising benefits like job creation and increased trade.