PROSPECTS IN URUGUAY AND PARAGUAY.
Page 57
If you've noticed an error in this article please click here to report it so we can fix it.
The Development of these Latin-American Republics Largely Depends on Road Motors. The Chances for British Products.
By a Special: Correspondent.
TRITGUAY may be considered,
generally speaking, as a favourable field for British enterprise, but, as in most of the Latin-American republics, :~evere competition will be met with and fairly, low prices must be quoted if any considerable volume of business is to result. The individual tastes and requirements of the market must be carefully studied, and, above all, it must not be regarded merely as an off-shoot of Argentina, to which it is adjacent_ Although the economic situation in Uruguay during the past few years has left much to be desired there is no deubt that a trade revival is taking place. Great Britain is still the principal exporting country to that republic, and the export figures most recently issued show a very satisfactory increase over those for the preceding year, Commercial Motor Increases in Uruguay.
The most striking development is undoubtedly the remarkable increase in the number of motor vehicles imported—commercial motor vehicles, in particular, being considerably more in evidence than at any previous period in the history of the country. Over 14,000 driving .licences have been taken out in Montevideo. The following figures, published in El Siglo, indicate the growth in the imports of motor 'vehicles of all kinds. Statistics for commercial vehicles alone are not available.
1910: Number of cars imported ... 155 1913: 559 1917: ,, „ ... 1,961
1923: „, , 2,422 1924 (six moDtbs): 1,950
The position of Great Britain in this market, although dot good, is distinctly more favourable than is the case in the other South American republics. Approximately 20 per cent. of the imports of cars are of British make and 50 per cent. of American make. As in the case of other Latin-American countries, the United States obtained a strong position in the market during the war, . when• supplies from Europe were not available.
The British Vice-Consul at Montevideo makes the following observations in a recent report :—
" The American car, which fits the tramlines (4 ft. 81 ins, gauge), and has a higher ground clearance than the average European car, is more suitable for local conditions and is sold at more moderate prices. A preference appears to be given to Fords for light lorries, whilst in heavy vehicles Renaults seem to have gained a firm footing in the market. Cars are very often sold on the instalment system."
At the present time there are considerably over 20,000 passenger cars and about 1,500 motor lorries registered in the country, and there are many good reasons for supposing that these figures will be greatly expanded during the next few years.
• Owing to the exceedingly flat nature of the country, the matter of road construction is very much simplified, There are no Mountains and only a few hills, such as Cerro—the so-called " mount " which overlooks Montevideo Harbour. The flatness of the vast plains permits of the use of motor vehicles,. even where there are no road's .worthy of the name. There are, however, many hundreds of miles of ratteadamized highway, and this mileage is being increased regularly every year.. In many towns the old-fashioned cobble stones have been replaced to a large extent by asphalt.
resolution passed by the Montevideo Departmental Council has prohibited the registration In Uruguay of vehicles with left-hand drive. All motor vehicles, commercial and otherwise, must be driven from the right-hand side.
Automobile and touring clubs in Uruguay are making every effort to persuade the Government of the necessity for increased road construction. There is no doubt that the future of transport in this topublic belongs to the motor vehicle. Where there are good roads and highways no other class of vehicle can be seen. At the present time the provision of roads of a total length of 1,250 miles in the south of the republic is under consideration.
Roads in Montevideo _(the ca.pi
tat) generally have a width of 60 ft., but the avenues and boulevards are from 115 ft. to 130 ft. wide, many of the latter being over four miles in length. The avenues and boulevards are practically straight, very beautiful, and for the greater part are of reinforced concrete with asphalt surfacing. It is planned to adopt this system for at least SO per cent, of the thoroughfares of the capital.
There is no doubt that, once the republic embarks upon a really comprehensive programme of road construction, the demand for commercial motor vehicles will increase with even greater rapidity than has occurred in the past. When that expansion takes place there is no rea, 'son why British makers should not obtain a reasonable share of the• business, so long as they adopt the methods of their principal foreign competitors.
Paraguay, as a market for commercial motor vehicles, is quite small at the present time, although signs are not wanting of increased activity in the near future. It is a market that should be studied by enterprising British makers desirous of securing a good part of the trade when the commercial development of the republic calls for more extensive road transport facilities.
The Political Influence on Corn-. inercial Prospects.
Provided that political tranquillity can he maintained, the republic should at an early date show a remarkable financial and commercial recovery. As it is, the general position is healthier than it has been for a period of at least ten years. An effort is being made to promote the cultivation of wheat on a large scale, and, should this succeed, there is certain to be a demand for motor' lorries for transport. A similar effort to promote the growth of cotton was made some years ago, and has already shown satisfactory results, as indicated by a slightly increased demand for road motors for transporting this produce.
The main obstacles in the way of Paraguay's development are the lack of a good road system and inadequate railway facilities. Once steps have been taken seriously to remedy these deficiencies, the commercial development of the country is likely to be extremely rapid. But the time to make a study of this potentially remunerative market is now, and not at. some remote future date when competing countries have already established a foothold.