Ezeiza Main Terminal

After 30 long years, Ezeiza will finally have an on-site hotel; project to be completed in 2013.

As the hub for 85% of all international flights in and out of Argentina, Ezeiza International Airport is always in the news. And usually for the wrong reasons, like the latest strike-du-jour (Aerolineas pilots, LAN flight attendants, air traffic controllers) or the recent chaos that ensued during the one-month closing of Aeroparque Jorge Newberry for renovations.

And while Argentina’s 33 major airports have seen major renovations since the 1998 creation of publicly traded airport concessionaire, Aeropuertos Argentina 2000, one of the enduring problems at Ezeiza is the lingering utilization of the original terminal built 60 years ago during Per0n’s first term.

When that facility opened in 1949, it was one of the largest airports in the world and boasted amenities like an on-site hotel. The hotel, like most government goodies erected during that surplus-wasting wave of socialism, fell into serious disrepair and closed over thirty years ago after Per0n’s return from exile.

Now, after 40 years of being less-than-accommodating to international passengers and flight crews, Ezeiza will once again have its own hotel thanks to a joint venture between BA-based developer Fernandez Prieto & Asociados and relatively unknown hotelier, Land Hoteles. According to Clari­n, the new on-site Ezeiza hotel will break ground in 2011 and be completed in 2013.

The US$30 million hotel will feature 160 guest rooms, a fitness center and a pool among other amenities. But perhaps best of all, it will be erected on its own podium rather than merged into the crumbling carcass of the old terminal. The announcement should encourage other foreign developers to contemplate hotel construction in and around Ezeiza, as well as much needed off-site parking. (Full Story in Spanish)

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Bienvenidos Argentina

A record number of foreign visitors have spent over US$3 billion in Argentina so far this year.

5,000,000. That’s the number of foreign visitors Argentina’s Ministry of Tourism is forecasting for 2010. And judging by the numbers through the first ten months of the year, the country will easily reach that number and shatter the old record set in 2008. The numbers also paint a picture of the economic strength of Argentina’s neighbors and the lingering effects of the global financial crisis in the U.S. and Eurozone.

Before the crisis the bulk of foreign visitors to Argentina were from the E.U., the U.S. and Canada. In 2006, 22% of incoming visitors were from the E.U. and 17% were from the U.S. and Canada. Fast forward to 2010 and Brazil has emerged as the number one country of origin for Argentina tourists with 33% of the tourist pie. According to Cronista, the number of Brazilians arriving via Ezeiza and Aeroparque through the first nine months of the year more than doubled to 646,449.

As InvestBA has documented previously, Brazilian tourists are shopaholics who spend US$156 per day, the same as Chilean visitors and 40% more than the average tourist spends per day (US$113). Not surprisingly, Brazilian and Chilean visitors are more likely to travel to Argentina for “escapadas” (quick getaways) averaging 5 days per trip, while North Americans and Europeans spend an average of 13 and 20 days in Argentina, respectively. (Full Story in Spanish)

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Tranvía Retiro - La Boca

The Retiro-Boca Tranvi­a in Buenos Aires is just one of Argentina's ghost trains.

With Aeroparque Jorge Newberry closed for renovations until December 1, it is a chaotic weekend for those traveling in and out of Buenos Aires.

Flight delays, cancellations, union protests and frayed nerves abound at Ezeiza International, and the Transportation Secretary today acknowledged Ezeiza is not equipped to handle the extra passenger/aircraft load shifted from Aeroparque.

And while problems abound in the friendly skies, La Nacion shines the spotlight on the dirty undercarriage of Argentina’s rail system. In a well-researched analysis, Diego Cabot paints the picture of decaying rail infrastructure, powerful unions, no-bid contracts and a long history of broken political promises. The Lincoln-Realico line in La Pampa? Silent. The Bullet Train to Rosario? Postponed indefinitely. The Retiro-Boca Tranvi­a in BA? It runs sporadically around Puerto Madero.

Cabot makes no mention of the July announcement that China would back US$10 billion of Argentine rail projects, so that government-trumpeted joint venture may be pending derailment as well. Hopefully the situation will improve, but it’s an unfortunate state of affairs for vital infrastructure that has the potential to connect so many, transport so much and boost Argentina’s economy through job creation and expedited commodity shipments. (Full Story in Spanish)

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Lan Tam Airplanes

When Cueto Met Amaro: In the works for 7 years, the Latam merger will shake up the regional landscape.

When Chile’s LAN and Brazil’s TAM, two of Latin America’s most efficient and profitable carriers, announced plans to combine operations, the headlines trumpeted the superlatives: the region’s largest fleet, 115 destinations in 23 countries, $8.5 billion valuation, $400 million in annual cost savings, and the list goes on.

But the combined operations and creation of Latam Airlines Group (LAG) trumpeted in the global financial press has been downplayed here in Argentina, and Carlos Manzoni of La Nacion tells us why. “The merger will be a blow to Aerolíneas Argentinas (AR), because Aeroli­neas will have to compete with (Latam) in the two most important routes they have: Chile and Brazil. They are going to lose market share when they should be gaining ground.”

If Argentina decides to makes life more difficult for Latam, Manzoni says, the new carrier can retaliate in a few different ways. TAM could stifle the flow of Brazilian tourists to Bariloche during ski season by routing flights to Valle Nevado in Chile instead. Likewise, LAN could opt to shut down trans-Atlantic service from Ezeiza to Europe, and channel those flights in and out of Sao Paulo instead. Either way, it will be a new airline landscape where Latam dominates as the big continental carrier, while small regional airlines like Gol and Pluna continue to gain market share exploiting the low-cost niche.

In closing, Manzoni says the courtship between the Cueto (LAN) and Amaro (TAM) families has been ongoing since 2003. Now that the nuptials are pending, let’s see if old regional flames try to spoil the honeymoon. (Full article in Spanish)

The Belgrano Cargas rail line in Argentina

The Belgrano Cargas line connects BA with 13 of Argentina's richest commodity-producing provinces.

With close to 30,000 miles of functioning tracks, Argentina’s rail network was one of the world’s most extensive and profitable by the middle of the last century, but you wouldn’t know it by visiting the country today.

Sixty years of neglect have left the once robust freight and passenger railroads a rusting shell of their former selves. For example the train connecting Buenos Aires and Cordoba was suspended in 1993, reinstated in 2005, but today the tracks are so dilapidated the 385-mile trip can take as long as two days.

The most recent glimmer of hope for a rail renaissance was the 2008 announcement of a Bullet Train (Tren Bala) connecting Buenos Aires and Cordoba, but there has been no progress on that front for two years.

Now it seems an Argentina rail renaissance may actually begin with backing and financial support from the world’s largest importer of just about everything: China. No stranger to infrastructure development projects in Africa and the Americas to expedite the flow of commodities she craves, China has committed to work on Argentina rail projects valued at roughly $10 billion.

According to Bloomberg, the rail upgrades will take place on the The Belgrano Cargas line, a freight network connecting BA with 13 provinces, and the Ferrocarril Belgrano. Future Chinese-backed infrastructure enhancements in Argentina may also include a $1.8-billion subway system for Cordoba and a rail line extension connecting BA with Ezeiza International Airport.

 

Bariloche

Mendoza

Uruguay

© 2011 InvestBA.com