Business

Strong Interest Defined Terminal Auction

Wednesday, 10 March 2010 08:56

The Council of Ministers defined yesterday not to change the date of the auction of the second container terminal by the "strong interest" to ratify, at least three carriers in the last hours.
The government is betting that for next March 17 there will be more than one interested to stay with the award of the second container yard and so they decided not to change the original date and the conditions for competition, although in recent weeks appeared some doubts about the possibility of failure to present any company at all.
According to official sources commented Ministries of Economy and Transport, the portfolios involved in the issue, "agreed yesterday 100%" that they could not postpone the date of the auction because "it was necessary to give certainty" to outside investors. Moreover, "there is information that at least three companies have said in recent hours, to have a strong interest in participating in the auction," sources said.
Originally the ANP had a list of nine interests. But that was before the outbreak of the international crisis that left financial check to any of these lines.
The auction for the second container terminal will be on 17 March at 10am in the Montevideo Stock Exchange and has a base price of $ 1.2 million. For the auction of the first container terminal (MCT) Katoen Natie paid $ 17 million. Just today the company negotiated with the government to avoid an international trial on the grounds that the second terminal “affects" business structure.
Transport Minister, Enrique Pintado, said yesterday that the auction for a second container terminal does not harm the Investment Protection Treaty with Belgium and recalled that when it was auctioned no commitments were made not to build another.

(www.elpaís.com.uy and www.espectador.com, March 9, 2010)

Mujica: We Give Guarantees Because we Seek For Development

Tuesday, 09 March 2010 07:05

José Mujica said his government's respect for investment and reiterated his idea of promoting the country as "a good place to live."
The President participated in the signing of the agreement that the Portuguese group Pestana Hotels & Resorts, will control for the next 38 years the building of the Jockey Club in Montevideo, 18 de Julio y Andes, for conversion into a five star hotel. This group was among the losers in the last tender of the Hotel Casino Carrasco and specializes in rescuing historic buildings to make them five-star hotels. In this case, the refurbishment will last two years and shall respect the architecture of this place, which was one of the most luxurious and representative of Montevideo in the '30s and '40s. Built in 1932, was declared a National Historic Monument in 1975 and has been closed since the late '90s by the bankruptcy of the Jockey Club.
The investment will be $ 15 million and once completed, will be called Pestana Montevideo, a five star hotel of international quality, with 100 rooms. This site will employee directly to 130 people.
In explaining why his bet of Uruguay, the group representative, Luis Araujo Pestana, said the building itself is a reason more than valid, but the bottom line is that "We were very confident and there is a lot of security, stability political, economic and social development being experienced in the country. That's the first thing we look at countries, and we found it in Uruguay, and we are confident that we will continue to find. Moreover, confidence in the institution, the clear rules that things have" said the businessman.
The representative of this group, George John Flor, recalled the stillness that Mujica trasmited when he was told that if they were transparent and created jobs for Uruguayans, they will have all legal by the government. The Spanish businessman said he will "broadcast in Europe the great weather," he found in Uruguay to invest and announced that his group will create a fund of $ 200,000 to help young people inside who want to study in Montevideo.

(www.espectador.com, March 9, 2010)

Employers: The Speech Left a "Good Impression"

Tuesday, 02 March 2010 09:10

The first words of José Mujica in his role as President, caused a good impression among some business representatives. The concept which is agreed that messages Mujica gave in the General Assembly, where he outlined some goals of his government was a "positive" signal.
The president of the Chamber of Commerce, Alfonso Varela, rescued Mujica’s speech as "measured" and "educated". "I think it's a speech that left a good image," summarized Varela, who rescued the messages of economic liberalization, regional integration, and the search for improved quality of life of the population. Varela appreciated the expressions of new president to "bet the business development and challenge. But the head of the Chamber of Commerce said he would have liked to hear something more concrete about the proposed reform.
Reading by president of the Chamber of Commerce, Christian Bolz was also favorable. "We are certainly paving a letter of credit and commitment and are willing to collaborate in whatever is needed for the good of the country," he said. Bolz highlighted Mujica's call to the businessmen to collaborate on the development of the country. "It's a speech calling for the unity of all Uruguayans, who summons the government policies, is a discourse that calls for society to overcome any problems that are common. I would say that the guidelines that President Mujica outlined are fully sharable" raised Bolz.
The committee chairman for Socio-Labor Relations of the Chamber of Industries (CIU), Dimitrios Linas, noted for his party that Mujica’s oratory has generated "positive expectations". But he said we'll wait and see "the execution plan and the implementation of the messages sent" at ministerial level.
Employers and members will accompany the inauguration of the new Labor Minister Eduardo Brenta. Representatives of the Chamber of Commerce and Industry Chamber and the Executive Secretariat of the PIT-CNT will be present at the event, scheduled for 1445 hours at the ministerial headquarters. At the ceremony President Jose Mujica will also participate.

(www.elpais.com.uy, 2 March 2010)

Rentals Increased 15.2% During 2009

Thursday, 18 February 2010 07:28

Rents rose 15.2% in Montevideo last year, while apartment rents were higher than those of houses increase, said on Wednesday the National Statistics Institute (INE). In December, the average rent in Montevideo was $ 4,946, representing an increase of 15.2% from a year ago when the average stood at $ 4,293. In the case of leases of the apartments was 15.3% rise in rental buildings and 15.5% in the condominium buildings and houses, the increase was 13.5%.
The new rental contracts concluded in December yielded an average price of $ 6,165, showing a difference of $ 1,219 over the average of existing leases. In December 2008, the average new rent was $ 5,410, a level 14% lower than twelve months displayed. Meanwhile, the average price per square meter in the sale of property closed 2009 to rise 15.2% but decreased by recording the number operated at 8.7%.

(www.observa.com.uy, 18 February 2010)

Crisis of Beef Production in Argentina Favors Uruguay

Friday, 12 February 2010 08:30

The Argentine meat market is going through a difficult time with a sharp drop in the stock and domestic prices to soar. Ignacio Iriarte, private consultant from the neighboring shore, says "There is a very strong circumstantial restriction of the supply of beef in Argentina as demand suffers a panic attack. The Feed Lot, which had managed to keep 2 million heads, has been emptied but lasted until September when scandals pay cut subsidies and payments sector started. The second aspect is that it rained in an extraordinary way in 80% of the countryside. And the third reason is that it is already starting to feel a phenomenal drop in the stock and now there are just over 50 million heads while three years ago there were 61 million."
The system will not solve Feed Lot in the short term and there is stillness because prices are too high while the heavy bull is on the order of $ 3.50 per kilo on the hook as exporter dollar. Also exports are limited to the Hilton and the innards so plants are working 30 to 40% below their installed capacity. And the meat hook has increased by 80% since November.
"The big effect on Uruguayan exports are being seen at the Hilton and the Russian Federation. When Argentina is out, the Uruguayan market is priced better and with a large number of markets to choose to sell. That advantage is going to start being seen in the coming weeks. Argentina in the coming years will export less and throughout the period in which the Kirchner lead the country they are going to have their exports restricted" he said.

(www.observa.com.uy, 12 February 2010)