Investing in Uruguay
Why Uruguay?
Strategic Location and Market Access
Uruguay is geographically at the center of a market inhabited by more than 215 million consumers, with the highest per capita income in the continent, and a GDP of US$ 600 billion. MERCOSUR has its best “gateway” in Uruguay, greatly enhanced with the conditions that the MERCOSUR agreement has created for the development of trade and business among the members of the block.
Easy access to that large market (specially to the core of business in the region, situated in a 1.500 km. radius area), and to other regions and countries in the world is assured by an extensive and varied communications network, together with strongly competitive financial and business support services.
Uruguay qualifies as an ideal platform from where business opportunities are launched to the region and the world, based on its economic and political stability, along with an open and cosmopolitan society.
Infrastructure
Telecommunications
Uruguay has made important investments in telecommunications gaining a preeminent position in Latin America, as reflected in the following indices: 100 percent of the lines are digital, there is a cellular telephone density of 15% and there is a 14% of direct access to internet in relation to total population. These two indicators are constantly growing and respective tariffs are experiencing a slow permanent decrease.
Transportation system
Due to its geographic location, Uruguay is a permanent link for land and maritime communications between the MERCOSUR countries, specially Argentina and Brazil ; this situation is the result of its strategic insertion between the more wealthy and developed areas of its neighboring countries.
Uruguay has developed competitive advantages in the provision of services. Particularly its transportation system has infrastructures in existence and important investments in order to allow a full development, which enable responding to the transportation demands of the strong interchange flows between the MERCOSUR member countries, and to the regional requirements for international interchange. Uruguay 's transportation infrastructure allows full interconnection of its territory with the area that stands for 80% of the GDP of the region without limitations.
Road transportation
The road network, substantially paved and adapted to the current territorial model, is the most dense network of Latin America and the Caribbean, with 45 km paved roads for each 1000 km2 of surface.
International cargo transportation flows without restrictions through the different border line points between Uruguay, Argentina, Brazil, Chile and Paraguay, with an available fleet which has no limitations.
The internal transportation of passengers is made substantially by bus through private enterprises under a regulated competition system, which has led to solutions under high standards of quality and efficiency.
The interconnection with neighbor countries is made through different border points: with Argentina there are 3 bridges across the River Uruguay in the cities of Salto, Paysandú and Fray Bentos, whereas with Brazil, highways converge in the towns of Artigas, Rivera, Río Branco and Chuy.
River and sea transportation
The main local port of Montevideo is the deepest natural harbor of the River Plate area. It receives sea lines from all over the world and concentrates the export, import and transit trade. It is the first and only terminal in the Atlantic coast of South America that operates under the free port system.
The port is a terminal which, within its boundaries, is a zone of customs exclusion where private operators offer a number of services of international level including container, terminal and container warehousing.
Paraguay- Paraná Waterway
The port of Nueva Palmira, the terminal of the Paraná-Paraguay waterway, is in full expansion. This waterway, 3.442 km. long, includes the River Plate and the Paraguay and Paraná rivers connecting the center of South America with the Atlantic coast, i.e., the most important river transportation system in South America.
This requires investments identified for the improvement of the navigation in the waterway of about US$ 120 million plus an important investment in fleet and port improvements.
Uruguay intends to grant concessions of both sea and river port installations for the transshipment of grains, located in the port of Nueva Palmira , which involves the exploitation of docks, silos and transshipment equipment and the expansion of equipment and infrastructure.
Air transportation
The main airport installations are in the zone that concentrates population and touristic infrastructure, between Montevideo and Punta del Este.
Carrasco International Airport is located east of Montevideo 18 km from downtown and is the main air terminal of Uruguay . Intercontinental connections are in charge of 10 international airlines with regular passenger and air cargo services, some on a daily basis.
A remodelation and enlargment program for the Carrasco International Airport will be completed through private investment, in order to improve the existing infraestructure. Laguna del Sauce Airport is located 15 km away from Punta del Este and both its terminal building and runways have been fully renovated.
Energy
The basic sources of primary energy in Uruguay are hydroelectric and oil.
The limitations in the hydroelectric potential in Uruguay facing an increasing demand have focused government policy on incorporating new sources of energy in the national energy plan. Current efforts are directed to introducing natural gas from the neighbour countries.
Gas pipeline
A 250 km. long gas pipeline is under construction between Montevideo and Buenos Aires. This construction will allow transporting between 2 and 2.5 million cubic meters per day of natural gas between Argentina and Uruguay , which will be used basically to generate electricity. The pipeline will feed, apart from homes and industries, a power plant currently in process of construction. The plant will transform the energy into cheaper electricity.
The “Litoral” pipeline, which transports gas from Entre Ríos in Argentina to Paysandú in Uruguay, has already been constructed. This 20 km. long pipeline, feeds the cement and alcohol plants of ANCAP, the industries of Paysandú, and the “city gate” from which the distribution network to homes is supplied.
Energy deregulation
As established in the law deregulating the energy production, thermo electric units may be built by the private sector under the BOT system (build, operate and transfer) and the electricity produced can be marketed to large consumers or to the state utility (UTE).
Water supply
The supply of potable water is available throughout the country permanently, complying with the World Health Organization (OMS) standards on potable water.
The state company in charge of the supply of water, OSE, is undertaking several significant plans for improving the system through contracting private local and foreign companies for the related construction work.
Human Resources
People
Uruguay is a country where the human dimension of its society remains intact. Comparable to those of the developed world, the social indicators show the educational and intellectual foundations of its population. From the outset, since it became an independent nation, economic activity in Uruguay has developed around the perfect symbiosis of two pillars: the abundance of its natural resources and the work of its people, most of which were European immigrants.
Successive generations of Uruguayans have completed primary schooling in the framework of a long-standing tradition of lay, free and compulsory education. The State-run school system has now extended its coverage to younger children (starting pre-school at 4 years of age), and at present 92% of all Uruguayan children attends kindergarten, be it public or private, for at least one year.
At secondary school level, Uruguay has the highest schooling rate in Latin America –85%-, double the mean rate for the hemisphere. Specialized vocational training starts at that level, apart from the normal program that prepares students who wish to pursue university studies in whatever field they choose. The Uruguayan university system is acknowledged world-wide for the capacity of its scientists, teachers and graduates in the different technical and professional areas. The traditional, almost 200-year old, Universidad de la República is no longer alone: in the last few years numerous private institutions and universities are also providing a complementary range of similarly high-quality educational programs at tertiary level. The high level of training of the workforce explains the ease with which Uruguayans can adapt to the use of new technologies in productive processes, and it also accounts for the development of new technological tools to be applied in businesses. The result of all this is a continuous increase in productivity. At present, one out of every three workers has completed vocational and/or university studies.
