The tender includes the design, financing, engineering, construction, operation and maintenance of the pulp terminal. The tenure of the concession would be for 50 years.
According to the company, modern facilities in the Montevideo deep sea port will offer a competitive gateway from South America to increasing export markets benefiting the Uruguayan economy.
An investment agreement was signed with the Government of Uruguay in 2017. As part of this agreement, Uruguay will promote concession for a terminal specializing in pulp in the Montevideo port with rail access. The pulp mill would have an annual capacity of about 2 million tonnes of eucalyptus market pulp. The initial estimate for a pulp mill investment on site is around EUR 2 billion.
Two preparation phases will have to be successfully completed before UPM makes a final investment decision. The second preparation phase is currently ongoing. If these two preparation phases are concluded wit success, UPM will analyse and preparing an investment decision.
If awarded a concession in the Montevideo port, UPM's financial commitment will be at USD 20 million at this stage. The preliminary UPM investment estimatation for the port facilities would be at about USD 260 million.