FREE ZONE OF RIO NEGRO - Uruguay

Currently there are twelve qualified Free Trade Zones in the Republic of Uruguay; they are: Colonia, Nueva Palmira, Montevideo, Libertad, Florida, Colonia Suiza, San José, Rivera, Botnia, Emce y Wold Tade Center Free Zone.

 From the effective Law of Free Trade Zones, passed in 1987 in Uruguay (Law 15921), these can be private, state or mixed; depending if the land or the administration is private or state.

 The oldest of all the Tax Free Zones of Colony, created in 1923; is mixed since the land belongs to the state and the administration is run by a private company. It is 800 mt far from the Port of Colonia and 178 km from Montevideo. This is the one which has had the settlement of industries (Pepsi Co of USA, Agapol, etc).for more time than any other.

 The Free Trade Zone of Nueva Palmira on the Uruguay River, with its own Port, and the best facilities for storing grains, transporting tapes, and all the necessary elements to make transfers from boats  ships, reason for which it catches a high percentage of the regional grain traffic through the U.S.A company Navios Corporation.

 The Free Trade Zone of Montevideo (or Zonamérica) is located 9 km from the Port of Montevideo and the Airport of Carrasco, and owes its greater development to the fact that it is the center of regional distribution, manufacture, and installation of service companies (financiers, sofward, professionals such as Price Waterhouse).

 The Free Trade  Zone Libertad, which is 50 km from Montevideo and 128 km from Colonia on the 1 route that connects both cities, like the rest that were mentioned, are logistic centers of merchandise distribution in international transit.

 The Florida Free Zone and the Free Zone San Jose, do not have a privileged location, and are located more in the center of the country.

Being the Republic of Uruguay a small country, it was not difficult to locate these Frank Zones in different places.

 The Free Zone Colonia Suiza is situated near Colonia and the Free Zone Rivera is on the Uruguayan border with Brazil.

 The benefit of Free Zone was granted to Botnia and Emce Company, exclusively for the paste manufacture of paper. Botnia has just constructed its own port on this Free Zone, on the Uruguay River so that they operate the five boats that are being constructed to transfer wood, Chips and paste of cellulose between Montevideo and Fray Bentos.

 Wold Tade Center Free Zone was the last authorized Free Zone, and is exclusive for companies of services. This is a 23-storey building in Montevideo for financial companies, companies of software, central houses of multinational companies, call centers, etc.

 The purpose of this introductory account is the following:

 1) Everything would seem to indicate that Law 15921, is very good for

the settlement in Uruguay of international service, logistic, industrial companies, etc.

 2) The location of each Free Zone can give a different profile, but its success would be more associated to the Management and level of investment rather than to its strategic place.

 3) The fact that the Free Zone has the possibility to build a nearby port seems to be an interesting advantage.

 4) It would also seem to be attractive that the Free Zone is located near another country

 But, although the Management and the investment were not a determining element, the Free Zone Montevideo, and others next to the Port, would not have been able to be developed as they have, since practically everything that can be done in a Uruguayan Free Zone, also can be done in the Free Port of Montevideo, but in the Free Zone they are faster, simpler and more economical.

 We understand indeed that, by lack of a professional and dedicated management, the Free Zone of Rio Negro has not developed at all.

 The Free Zone of Rio Negro is on the Uruguayan head of the Bridge Fray Bentos / Gualeguaychú, and less than one km from the Botnia Company.

 They are 52 hectares of a land of its own, 14 hectares of which are prepared with: park of containers for 15000 TEUS, five 8000 mt2 stores, scales for trucks, office facilities, aerial for Customs, a communications center with capacity for 10,000 telephone lines, roadwork, perimeter wire fenced and entrance barriers.

 It is the closest Free Zone to Argentina by land, and its ground reaches the water mirror of the Uruguay River with a fluvial front similar to what Botnia and Emce have (both constructed their own ports).

Each port can be found at both sides of the Free Zone of Rio Negro and they are apart only 5 km one from the other.

 The draft is never less than 5,80 mt, and at the moment Williams  Marine Agency operates with barges that transport wood and Chips.

 Not only has this Free Zone (that we have on sale) the possibility to have its own port, but also to create, for example, a head office of tanks for liquids in bulk, that in Uruguay does not exist, and that are greatly wanted by the chemical and pharmaceutical industry in the area.

 Like all the other Uruguayan Free Zones, it is completely tax free, and it can develop not only a logistic task as center of regional distribution, but also as a manufacturing centre

 The fact that it is located so close to Botnia company, has an extra attractiveness, that the international suppliers to that company, can settle there to produce or deliver just in time the raw materials that are required by the company.

 If a businessman wanted to ask the National Executive Authority a permit to establish a new Free Zone in Uruguay, he/she must elaborate a project with an investment, no less than U$S 10.000.000, otherwise it would not qualify to enter the application.

.Once that project is presented, it will have to be passed by: the Free Zones Secretary, the Main directorate of Commerce and the Corporation for the Development of Uruguay.

 According to the last antecedents, the approval process of a new Free Zone takes between one and three years.

 The Free Zone of Rio Negro is already qualified, in conditions for beginning to work immediately, the land is of its own and constitutes part of the company property, and it can be purchased with half of what the cost the initial payment of a Free Zone would be, debt free and personal.

When we refer to the initial payment of a Free Zone, it is the minimum value that is required by the State to consider the authorization of a new project.

 Who elaborated this brief and concise report, has an experience of twenty-seven years in the Uruguayan Free Zones, collaborated with the writing of Law 15,921, wrote a book on this subject in 1991, is Chairman of the Argentinian - Uruguayan Chamber of Commerce and represents numerous companies in Uruguay.

 With pleasure he offers to broaden this information, answer any doubts and exchange ideas.

 Kindest regards,

Gustavo Ferrand