UABL River Barges

completed

UABL is a river barge transportation operator on the Hidrovia. It was formed in October 2000 by the merger of the barge operations of Ultrapetrol and the operations of American Commercial Lines LLC, one of the largest US river shipping companies. The project consists of the expansion of UABL''s (or, the company) river barge and terminal operations on the Hidrovia. Though its size is equivalent to the Mississippi River, it suffers from a lack of infrastructure, and its potential is only beginning to be tapped. The Hidrovia is used for transporting petroleum products northward to upstream destinations in Argentina, Paraguay, Bolivia, and Brazil, and for movement of dry cargo (including soy, industrial commodities such as limestone, and forest products) downriver where transfers to ocean-going vessels can be made for export. Efficient regional transport services and links to the oceangoing shipping lines are important to making the best use of the region''s rich and diverse agricultural and natural resources. Without efficient regional transport services, the agricultural activities in the region would begin to stagnate.This project finances infrastructure that improves competitiveness of exports. IFC''s strategy emphasizes transport and logistics projects in less developed areas (like the region adjacent to this river system) which help to realize the potential of investments in the region. Due to the recent financial and economic crisis in Argentina, the availability of financing for infrastructure projects in this region is very limited. In this context, IFC will provide financing at a tenor and interest rate which is essential for this project but not available from other sources. IFC will play a key role in creating an appropriate financial structure for the project. Barges and ships are particularly effective as carriers of bulk goods such as agricultural commodities and industrial raw materials, which constitute the majority of the cargo transported by UABL, and are needed to support the regional industry. Lowering transportation costs will make the regional industry more competitive in world markets, spur the economic growth of the region, and serve as a catalyst for creating additional employment in the region.