Finnish forest-based company UPM has confirmed that it will place a bid for the concession of a terminal to be built at the port of Montevideo in Uruguay.

The bid has been issued by Uruguay’s National Ports Administration (ANP) in the form of a global public tender. The winner will build and operate a pulp terminal at the Montevideo port for a period of 50 years.

The tender covers the design, financing, engineering and maintenance of the terminal.

Once developed, the terminal will handle the storage and shipping of pulp, chemicals and other items associated with pulp production.

The terminal will have the capacity to handle around two million tonnes of pulp every year and is expected to provide a competitive gateway from South America to the export markets abroad.

UPM in a statement said: “If awarded a concession in the Montevideo port, UPM’s financial commitment in the form of a performance bond would be $20m at this stage.

“The preliminary UPM investment estimate for the port facilities would be approximately $260m.”

“At the time of the potential final investment decision on the pulp mill project, UPM would proceed with the port investment decision and start of the construction of the port facilities.

“The preliminary UPM investment estimate for the port facilities would be approximately $260m.”

UPM’s bid for the pulp terminal is in line with the company’s current study on the potential of establishing a new pulp mill in Uruguay.

In 2017, the company signed an investment agreement with the Government of Uruguay, which made a commitment to UPM for offering concession of a pulp terminal at the Montevideo port with rail access.