The barges will be used to transport roundwood for the pulp mill under construction in Punta Pereira in the department of Colonia.

Each barge will have a 5,000 tonne cargo capacity and can transport the equivalent of 170 truckloads. The market value for this type of barge is approximately USD 4 million.

The agreement indicates the barges will be sequentially delivered on 15 May 2012, 15 October 2012 and 15 January 2013.

The barge purchase is part of the river-based wood transport service. Wood will be transported the M&rsquoBopicuá Logistics Terminal in the department of Río Negro to the mill in Punta Pereira. Domestic and international suppliers were evaluated for this purchase.

During the ion process, the national government, through the Ministry of Industry, Energy and Mining (MIEM), conveyed to Montes del Plata its interest to promote the Uruguayan shipbuilding sector, as represented by the Shipbuilding Cluster, as part of a national initiative to promote this production chain, which is considered to be of strategic importance to the country.

&ldquoSince the development of the Shipbuilding Industry Logistics Pole is an issue of national strategic importance and one in which the government invited us to participate, the issue garnered particular consideration by Montes del Plata,&rdquo stated the company&rsquos communications manager, Carolina Moreira.

The company provided an additional timeframe for the local industry to attain the specification required by the logistics process. MIEM&rsquos participation and support enabled a competitive offer to be achieved in terms of cost and quality that meet the company&rsquos timeframes and the technical requirements of the Registro Italiano Navale (RINA).

Montes del Plata plans to transport up to 4 million tonnes of wood per year, 50% of which will be transported via river while the remaining 50% will be over land with a 400 truck fleet.

River transport is more environmentally friendly than truck transport, since the former emits a lower amount of CO² greenhouse gases that contribute to climate change. Another advantage of using river instead of road transport is the possibility of reducing traffic accidents.

A barge has a capacity to carry 5,000 tonnes versus 30 tonnes per truck. Once the pulp mill is operational, these barges will make approximately 400 trips per year. The June 15 contract signing was attended by representatives of the Ministry of Industry, Energy and Mining (MIEM), the Shipbuilding Cluster, the National Union of Workers in Metallurgy and Associated Areas (UNTMRA), the PIT-CNT labour conglomerate and Montes del Plata.