Infrastructure development as key enabler
Efficient logistics to ensure supply security from the pulp mill into global markets are secured by road improvements, extensive railway modernization and construction of a port terminal in Montevideo's port. These infrastructure investments support the economic activity of all industry sectors in Uruguay.
Modern pulp port terminal with direct rail access
As part of the total investment of approximately USD 3.47 billion UPM built a deep sea pulp terminal in the port of Montevideo. Direct rail access from the mill to a modern deep sea port terminal specialised for pulp deliveries creates an efficient supply chain to world markets.
UPM operates the pulp terminal as a long term concession holder paying fees on its use. The pulp terminal started operations in October 2022.
The Port of Montevideo located in Río de la Plata, is one of the major ports in South America and plays a key role in Uruguay's economy and competitiveness. The State of Uruguay invested in dredging of the port to deep sea level which has made Montevideo the only deep sea water port with a railway connection in the Rio de la Plata area.
Extensive railway modernization
The Uruguayan railway boasts over 150 years of history. The railway network, which spreads in six directions from Montevideo, was nationalised in 1948. By the beginning of this century the network had deteriorated significantly and only about half of the 2,900 kilometres of railway were in use.
Currently preparations for renovating the track from Paso de los Toros to Montevideo are ongoing. This 273-kilometre line will connect UPM’s new pulp mill to Montevideo’s port. Initial works on the central railway have started. The new rail connection will bring business opportunities to all industries such as grain, wooden products and containers, in Uruguay's interior and also the possibility to develop passenger traffic.
The Central Railway ‘Ferrocarril Central’, will be planned and built by the consortium Grupo Vía Central, which consists of companies from Uruguay, Peru, Spain and France.
The railway is owned by the state and operated by several operators. UPM will be one of the users of the line and will pay for its use. The company's freight is expected to make up half of the freight transported via the railway. This equates to up to 14 trains a day and about 4 million freight tonnes annually. UPM’s load will consist of pulp and raw materials.
Better connectivity with upgraded roads
The state will develop the road network in the interior of Uruguay to allow year-round use of the roads for efficient transportation enabling new business opportunities.
The quality of the roads and the density of the network are important factors for rural livelihoods and businesses. Their impact on safety, transportation costs, delivery times and competitiveness is fundamental. Upgrading the infrastructure contributes also to overall development by providing better access to education, jobs and medical services in rural communities.
In addition to the network improvement and reinforcement of route surfaces, road safety education and more controls are planned, as well as a new solution for transportation volumes through high performance vehicles.