Market Overview
Uruguay's rail network is operated by AFE (Administración de Ferrocarriles del Estado) for freight, primarily serving the forestry and agricultural sectors. The Ferrocarril Central project, a major investment by UPM and the Uruguayan government, has upgraded rail infrastructure to support a new pulp mill in the interior, with capacity to handle soy and other agricultural exports. Uruguay's rail sector has been revitalised by private investment tied to the forestry industry. Passenger rail is limited but there are ongoing discussions about restoring commuter rail services in Montevideo. Uruguay's small size and high-quality road network limit the economic case for extensive passenger rail. However, as an agricultural export powerhouse, freight rail remains strategically important for connecting the interior to Montevideo's port.