Transportation and logistics services 

The Uruguayan government has taken concrete steps to position the country as a regional gateway for commerce, forming institutions like the National Logistics Institute (INALOG) to align public and private sector efforts around infrastructure, trade facilitation, and regulatory coordination. 

At the heart of Uruguay’s logistics offering is its long-standing Free Trade Zone (FTZ) system.  First implemented over 100 years ago, and sustained across multiple administrations, the FTZ regime now includes twelve active zones contributing approximately 30 percent of the country’s exports and over 4 percent of its GDP.  These zones offer significant tax exemptions – no corporate income tax, no VAT, no import duties – creating a business environment that favors efficient, low-cost logistics operations.  U.S. companies with regional supply chain needs can benefit from Uruguay’s FTZs, especially those engaged in manufacturing, warehousing, and distribution. 

Uruguay’s strategic value is further enhanced by its proximity to key maritime and air transport channels.  The Port of Montevideo functions as a free port, allowing goods to be stored for up to five years without duties.  Carrasco International Airport operates under similar principles for air freight.  Both facilities aim to reduce transit times and simplify re-export procedures – key features for time-sensitive or high-value supply chain operations.  Bonded warehouse options add further flexibility by allowing up to 24 months of storage with deferred tax obligations. 

Uruguay also plays a critical role in inland logistics through its connection to the Hidrovía Paraguay-Paraná, one of the most vital river transport corridors in the region.  This waterway links landlocked Paraguay and parts of Brazil to the Atlantic Ocean, enabling the efficient movement of agricultural commodities, energy inputs, and bulk minerals. Uruguay acts as a gateway to global markets for these exports, especially key inputs like iron ore, grains, soy, and could play an important role in securing supply chains and supporting critical and emerging technologies.