Market Report: ORIENTAL REPUBLIC OF URUGUAY May 2020 OceanX - Version 2.0 / May 2020 2.0 - Version OceanX featuring our local members Market Report: Oriental Republic of Uruguay May 2020 Country ProÞle: Capital: Montevideo Population: 3,449,299 Area: 176,215 km2 Official Language: Spanish, Guarani Currency Unit: Uruguayan Peso (UYU) 1USD: 44.02UYU GDP (Current, 2018) Thousands: 59,596,885.02 GDP per capita (2018): 17,278.0 GDP Growth Rate (2018): 1.6% Inßation Rate (2018): 7.6% Unemployment Rate(2019): 7.9% Tax Revenue 20.09% Imports of Goods and services ( % of GDP): 18.98 Exports of Goods and services ( % of GDP): 21 * (Source World Bank Data) General Facts: Uruguay has one of the highest levels of GDP per capita in South America and has a developing middle class. In July 2013, the World Bank classiFied Uruguay as a high-income country. By 2017, the Gross National Income per capita at purchasing power parity (PPP) amounted to US$21,870. Service sector especially banking and tourism, has a larger share in the economy compared to other regional countries. In the Field of agricultural products, mainly rice, barley and wheat, corn and meat products are produced in the country, and meat products, rice, leather products, wool, Fish and dairy products constitute an important part of exports. T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Corporate tax: 25% Income Tax: 0-36% Standard VAT rate: 22% EXPORT MARKET Export Trade Volume (2019): US$ 9.1461 millones en 2019 Top Commodities: Soybean, beef, cellulose, wood, beverage concentrate, dairy products, rice. Top Destination Countries: China 31%, European Union (17%), Brazil (13%), the United States (7%), Argentina (4%) and Mexico (3%). IMPORT MARKET Import Trade Volume (2019):US$ 7.201 millones en 2019 Top Commodities: vehicles, clothing, plastics, telephones, and chemicals Top Origin Countries: Brazil 23%, China 22%, Argentina 12%, USA 7%, Mecico T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland URUGUAY TRANSPORTAION Main Ports: According to the World Economic Forum (The Global Competitiveness Report 2016-2017) Uruguay is the second country in South America in terms of port infrastructure. In Uruguay there are 8 ports with cargo movement: Montevideo, Juan Lacaze, Punta Pereira Free Zone, Nueva Palmira, UPM, Fray Bentos, M’Bopicuá and Paysandú. *Source: INALOG T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Market Size 2019 : Main Ports Volume 2019 Montevideo 570.271 (TEUs/full) Port of Nueva Palmira 2.544 Million Tonnes Fray Bentos 314.633 Tonnes * Source: ANP, Administración Nacional de Puertos 1. Port of Montevideo The Port of Montevideo, located on the Rı́o de la Plata, is geographically emerging as one of the main routes of cargo mobilization of MERCOSUR. It is the main commercial port of the country. The Free Port regime has made it the First and only terminal on the Atlantic coast of South America with an attractive and competitive logistics regime for the transit of goods. In the Port of Montevideo the main access routes to the rest of the country and therefore to the region converge. The port has two private terminals: Terminal Granelera Montevideo (TGM), specialized in the movement of bulks, and Terminal Cuenca del Plata (TCP), specialized in containers. On the other hand, it has the public terminal managed by ANP. Distribution of terminals in the Port of Montevideo New Access to the Port of Montevideo: It will enhance the port-city relationship, managing to separate freight vehicle trafFic from urban mobility, by building a viaduct over the port boulevard, avoiding congestion and reducing waiting times. Fishing Terminal- Puerto Capurro: The objective is to move the Fishing Fleets that usually operate at the Mántaras Dock to the north side of the bay of Montevideo, in order to decongest the port of Montevideo. Punta Sayago Logistics Port: The Punta Sayago Logistics Port integrates the expansion strategy of the National Port Administration to complement the land area of the Port of Montevideo, expanding the capacity of port infrastructure. Airport The Aeropuerto Internacional de Carrasco, with multiple international connections, is located 23 kilometers away from the Port of Montevideo. T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland 2. Port of Nueva Palmira 2.544.125 Tonnes It is the second most important port in the country, characterized by the transport of grain and cellulose. It is located in the city of Nueva Palmira, at the conFluence of the Paraná and Uruguay rivers, 270 km from Montevideo and 110 km from Colonia by land. The port comprises three private terminals: ONTUR (terminal that moves the pulp from UPM), Corporación Navı́os (bulk terminal) and Terminales de Lı́quidos del Uruguay (TLU) (liquid fertilizer terminal). On the other hand, it includes the public terminal managed by ANP, which has silos for the storage of agricultural bulk managed by the Terminales Graneleras Uruguayas (TGU) consortium. The Port of Nueva Palmira has two important advantages: its location at the door of the Paraná-Paraguay Waterway and its customs and Fiscal regime of Free Port or Free Zone. TRAFFIC - SERVICES The products currently handled that will increase in the near future are the following: * Grain * Citrus fruits * Dry bulks * Wood and wood products * Goods in transit HIDROVÍA PARAGUAY-PARANÁ (HPP) Argentina, Bolivia, Brazil, Paraguay and Uruguay are the countries that share this river system, whose main objective is to promote river communications by optimizing the navigation of barges and tugs on the Paraguay and Paraná rivers during most of the year. Most of the merchandise transported by the HPP are commodities, such as bulk in general, cereals, fertilizers and fuels. T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland 3. Port Fray Bentos 314.633 Tonnes The Port of Fray Bentos is located in the city of the same name, on the left bank of the Uruguay River, 317 km away from Montevideo. The distance to Nueva Palmira is 92 km (Km 0 of the Paraguay-Paraná Waterway) and to Montevideo 385 km via the Martin Garcia Channel or 560 km via the Mitre Channel. Its excellent geographical location is further enhanced by its road accessibility. Road access is possible via Route 2, to the south of the country, which in turn connects to Route 24. The latter connects to Route 20 and 25, which are the backbone of the wood industry transport. Two railway branches, which cross the forestry areas, reach the end of both docks. The aerodrome is 14 km away from the port. The port also has regular services for road transport of passengers. The port is near the Fray Bentos-Puerto Unzué international bridge, which is the shortest connection between Montevideo and Buenos Aires and facilitates the cargo interconnections between Uruguay and the agricultural and industrial area of the Argentine coast, Chile to the west and Rio Grande do Sul in Brazil to the east. T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Free Trade Zones: *Source:INALOG Uruguay has 11 free trade zone currently. During 2019, total quantity was 110,770.8MT and total amount was 5979 million USD. T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland OceanX Member KMA URUGUAY KMA GROUP is a business platform of companies owned by Gabriel Kaklouk, aimed at providing a comprehensive service such as Maritime Agency, NVOCC, Freight Forwarder and Logistic Operations. All the activities of KMA and the rest of the companies belonging to the group are concentrated in Uruguay, Paraguay, Argentina and Bolivia, but the group aims to extend its services to all member countries of Mercosur and other Latin American partners. KMA specializes in Ro-Ro and project cargoes via Montevideo. Main routes are to and from: Northern Europe, West Coast of Africa, Mediterranean, Baltic, East and West Coast of USA and Canada. Also has some regular services like Hongkong with Charterlink and Italy with Sinergy for Uruguay and Paraguay. In 2014 more than 25 years of experience in transporting vehicles, machinery and project cargoes were rewarded with the implementation of the ISO 9001 Quality Management System. KMA has been certiFied by Lloyd’s Register LRQA. ISL- Independencia Shipping Lines Independencia Shipping Lines is a part of KMA Group, offers dynamic logistics operations providing its own vessels, matis, tug master and RO-RO lift. Company activity started in 2011, in such a short time Fleet increased and ISL became a leader in RORO and project cargo within the region. ISL’s vessels transport cargoes regularly between Uruguay, Argentina, Paraguay, and in the near future Bolivia. Key Contacts – KMA, Uruguay Ignacio Iturburu Commercial Manager 25 de Mayo 713/901 – Imperium Building Montevideo – Uruguay, CP 11000 Phone: (+598) 2909 1412 Ext. 103 Mobile: (+598) 94 782 669 Email: [email protected] Skype: kma_uruguay T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland References INALOG, Instituto National de Logistica: http://www.inalog.org.uy/es/infraestructura-puertos-libres/ ANP, Administración Nacional de Puertos: http://www.anp.com.uy/Inicio World Bank: https://www.worldbank.org/ ANP, Administración Nacional de Puertos http://www.anp.com.uy/Inicio Ministerio de Transporte y Obras Publicas http://www.mtop.gub.uy/web/ guest;jsessionid=DF0F8E02B938F5CB17447813AA0327E8 CEPAL, THE UNITED NATIONS, Economic Commission for Latin America and the Caribbean: https://www.cepal.org/en/notes/port-activity-report-latin-america-and- caribbean-2018 T +41 62 544 94 10 E [email protected] I oceanx.network OceanX AG, Fluhgasse 135, 5080 Laufenburg, Switzerland Market Report: ORIENTAL REPUBLIC OF URUGUAY Version 2.0 / May 2020 Proprietary and Confidential - OceanX Members Only .