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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 11383 |
| Project name | UABL River Barges |
| Country | Latin America Region |
| Sector | Transportation And Warehousing |
| Department | Infrastructure |
| Company name | UABL Limited |
| Environmental category | B |
| Date SPI disclosed | April 26, 2002 |
| Projected board date | May 30, 2002 |
| Status | Completed |
| Previous Events | Invested: March 21, 2003
Signed: December 17, 2002
Approved: June 25, 2002 |
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| Project sponsor and major shareholders of project company |
Bahamas-based Ultrapetrol Limited (Ultrapetrol) holds 50% equity in the project company, UABL Limited. Ultrapetrol has the largest privately owned oceangoing tanker fleet in South America. It is owned in part by Inversiones Los Avellanos S.A. (Los Avellanos), a Chilean holding company. Los Avellanos is controlled by Sipsa, a Chilean publicly quoted company. Sipsa's majority shareholders have been involved in the maritime industry for over 120 years. Ultrapetrol's other shareholder is the AIG-GE Capital Latin American Infrastructure Fund (LAIF), the largest private equity fund operating exclusively in the Latin American region, with over US$1 billion of capital commitments from institutional investors.
US-based American Commercial Lines LLC (ACL) holds the other 50% equity in UABL Limited. ACL is the largest barge operator in the world with over 5,000 barges in operation. ACL's international operations are on the Orinoco River (with headquarters in Puerto Ordaz, Venezuela) and on the Parana River System and through UABL (with operational staff located in Buenos Aires, Argentina). |
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| Total project cost and proposed IFC investment |
| The total project cost is US$ 85.0 million. Proposed IFC financing of the project includes an A-Loan of US$15.0 million, a C-Loan of US$5.0 million, and equity of US$5.0 million. IFC's total commitment would be US$25.0 million. A B-Loan of US$21.0 millions and a co-financing of US$ 5.0 million are also being contemplated. |
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| Location of project and description of site |
| The project site is in the vacinity of the Parana and Paraguay River systems (the Hidrovia). The Hidrovia starts near Buenos Aires, between Argentina and Uruguay, and heads north to form over 3,000 kilometers of waterways. It connects Bolivia, Brazil, Paraguay, Argentina, and Uruguay. |
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| Description of company and purpose of project |
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. |
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
| Locations for the release of the ERS include: Buenos Aires, Parana, Corrientes, Encarnacion, Ciudad del Este, Asuncion, and Puerto Aguirre. A notice will be published in local papers, and the ERS will be made available at public libraries or other appropriate locations in areas where UABL has or will have operations (e.g. Puerto Wanda, C.A. Lopez, and Tres Fronteras). |
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| To contact the project company, please write to: |
Mr. Daniel Canales
Environmental Affairs - UABL project
Avenida L.N. Alem 986 - 11TH FLOOR
C1001-AAR - Buenos Aires
Argentina
Phone: 54-11-4875-0466
Fax: 54-11-4875-0499 |
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