The Fray Bentos port is still in the race (and with good chances) to stay with the output of the cellulose from a plant with Swedish origin that plans to be built in Paraguay that will require a investment of about US$ 4,000 million and will be operational in 2025.
This Wednesday, the director and co-founder from the pastry Paracel, Per Oloffson, was touring the Fray Bentos port terminal. The pulp production would arrive by barge from Concepción (Paraguay) to the port warehouses in Fray Bentos. This operation would take about 20 days of navigation through the waterway, and around 70 barges would be needed for the operation. The merchandise would then be loaded once a week onto a larger vessel, which would then complete the load in Nueva Palmira without entering the port.
Olofsson spoke with radio Rincón de Fray Bentos and specified that the definition of whether they will operate in Fray Bentos has not been taken. In any case, he indicated “the visit has been very productive”, he indicated. He added that the dock “is very well adapted” to the company’s requirements, although there are technical issues that are being resolved with the National Ports Administration (ANP) to make logistics viable.
Paracel already has financing of some US$4,000 million, which is the investment to be made and which includes “the forestry, industrial and logistics part.” ANDhe investment group currently has a plant in Sweden, which has been operating since 1904, and they think that production in Paraguay will be for the next 100 years. In addition, more investments in pulp production will surely come, which will require more ports, the executive said. The businessman indicated that the idea is for Fray Bentos to be a “hub” for the output of cellulose because new investments will arrive in Paraguay in that industry in the coming years.
On the other hand, Olofsson explained that if they settle in Fray Bentos, they must build a warehouse and a covered mooring. The company looks with expectations at what is the confirmation of the beginning of the feasibility study of the dredging at 34 feet of the Uruguay River announced by CARU, since it would facilitate shipping operations overseas.
The Paracel industrial plant will be the largest private sector investment in the history of Paraguay. The venture’s main partners are the Paraguayan Copetrol of the Zapag group, which operates in the fuel import and distribution business, and Girindus Investments, a group of companies based in Sweden.
The factory is expected to be operational around 2025 and employs around 4,000 people directly. The activity will be focused on the production of bleached eucalyptus kraft pulp, and for a volume of 1.8 million tons per year, with Asia as one of the main destinations.
In addition, it expects to generate approximately 220 MW of renewable energy, of which about 100 MW would be sold to the national grid. The factory will be located on a 1,200-hectare former cattle farm 13 km north of the city of Concepción, on the left bank of the Paraguay River, and connected to Concepción by 18 km of existing roads.
Government confident that investment is made
In an interview with the program QR code de Rincón, the president of the ANP, Juan Curbelo, recalled that the government has “made innumerable steps” and presentations seeking to confirm that logistical investment for Fray Bentos. “Before December 20, everything related to the investment will be resolved. The primary decision (of Paracel) to remove 1.8 million tons of cellulose is that it be through Uruguay,” he assured.
Curbelo reported that a 20,000-square-meter warehouse would have to be built, in addition to a covered berth similar to the one in the UPM port. It is expected that an ocean ship will arrive every 3 days and leave with a half load from Fray Bentos and complete it in Nueva Palmira without touching port. “There are 72 barges that would travel for 20 days from Paraguay to Fray Bentos,” Curbelo said.
Presidency
Port of Fray Bentos
“It is good news that Argentina is advancing in the dredging 34 feet from the Uruguay River, this will mean the arrival of more cargo. For the first time the planets are lining up for Fray Bentos,” Curbelo said.
On the other hand, the president of the ANP revealed to QR code that one of the owners of Paracel bought land in Soriano and wants to build a port there, but it is for other items that he has in Paraguay, which is not linked to the Fray Bentos project.
