Buquebus, Banco Santander, and IFC sign financing for the world's largest electric ferry on the Argentina-Uruguay route

Montevideo, July 26, 2024 — The International Finance Corporation (IFC), a member of the World Bank Group (WBG) announced the signing of a partial credit guarantee of USD 67 million to Buquebus (Los Cipreses S.A.) for the building of the world's largest electric ferry (e-ferry) China Zorrilla, which will connect Buenos Aires, Argentina, and Colonia del Sacramento, Uruguay, through a loan from Banco Santander Uruguay for USD 107 million. 

This financing allows Banco Santander and IFC to carry out the first "blue operation" in Uruguay and the first in the maritime and electric transport sector worldwide. The concept "blue loan" - a subset of green financing - is a concept used by IFC to refer to investments in water management, reduction of plastic pollution, restoration of marine ecosystems, sustainable maritime transport, ecological tourism, and marine renewable energy. 

"At Buquebus, we believe that the future is only possible if it is sustainable and efficient. Therefore, reducing energy consumption, incorporating innovation, and strengthening social action are part of our business strategy,” said Juan Carlos López Mena, president of Buquebus. “Our main environmental goal is to reduce greenhouse gas emissions through state-of-the-art technologies. We focus on continuous improvement, generating energy efficiencies, and ensuring social equity in everything we do. We are proud and grateful for our long-term partnership with Banco Santander and now with the International Finance Corporation (IFC) achieving the goal of Zero Emissions with this innovative vessel." 

Gustavo Trelles, Country Head of Santander Uruguay, stated that the bank's commitment to sustainability is strong and resolute: "We do not allow ourselves to stop at mere words; we focus on actions, as we have made public commitments to become a leading player in sustainable financing. All our financing tools are available to individuals and companies determined to pursue progress, investment, business growth, and driving the green transition. I want to highlight our relationship with Buquebus, a partnership that has lasted for over ten years and is marked by constant exploration to grow the business, thereby offering the best to our clients. This is one of our greatest commitments, and we will continue to carry out our activities in this direction." 

“This project is a remarkable innovation that will bring the world’s largest e-ferry to connect Argentina and Uruguay, marking the first e-ferry in emerging economies. It will inspire other companies in this and other regions,” said Alfonso Garcia Mora, Vice President for Europe, Latin America, and the Caribbean at IFC. “Investing in electric transportation is essential to reduce millions of tons of greenhouse gas (GHG) emissions each year, a sector that accounts for around 25% of these emissions globally.” 

By supporting the decarbonization of the largest passenger ferry operation between Argentina and Uruguay, which will bring a reduction equivalent to 37,545 tons of carbon dioxide (tCO2e) per year, the investment continues the World Bank Group’s programmatic and coordinated approach to making the transportation sector in Latin America and the Caribbean more sustainable. 

The financing adds to Banco Santander’s more than a decade-long relationship with Buquebus to support its sustainability goals, a path the maritime transport company has responsibly taken to address environmental challenges with a comprehensive approach. This commitment to sustainability began with the construction of the Francisco vessel over ten years ago, also financed by Santander, which operates on Liquefied Natural Gas (LNG), a cleaner fuel than diesel and fuel oil alternatives. With the introduction of the China Zorrilla, Buquebus is once again at the forefront of technological and environmental advancement. 

Additionally, Buquebus will invest another USD 14 million in two charging stations and transmission infrastructure to provide electricity to the e-ferry, which will have a capacity for 2,100 passengers and 225 vehicles. The e-ferry will also feature a duty-free shop, restaurants, and world-class facilities, including equipment for passengers with disabilities. The e-ferry is expected to be operational in October 2025. 

The construction of the e-ferry has been entrusted to Incat Tasmania Pty Ltd. (Incat), an Australian shipyard with 30 years of experience in high-speed light catamarans. Incat uses renewable energy in all its construction processes, as it is in Tasmania, an island that has maintained net-zero emissions since 2013. 

The introduction of the electric ferry is also aligned with Uruguay's Nationally Determined Contribution (NDC) under the Paris Agreement, which includes electric mobility and associated infrastructure as a central element of the country’s mitigation measures. The proposed investment is also aligned with Argentina's NDC, which identified the renewal of its river fleet with alternative energy as a key mitigation measure in the transportation sector. 

About Buquebus 

Buquebus is a leading river transport and tourism company in Argentina, Uruguay, and the Southern Cone. With 45 years of experience and quality service for passengers, its high-speed vessels navigate the Río de la Plata between Argentina and Uruguay, connecting Buenos Aires with Colonia del Sacramento and Montevideo, with daily connections to multiple destinations such as Carmelo, Punta del Este, Piriápolis, and La Paloma, among others. Through its specialized tourism business unit, Buquebus offers customized packages, including hotels, flights, excursions, and transfers to Argentina and Uruguay. Its main objective is to provide passengers with excellent service, ensuring total safety, greater speed, and maximum comfort for a unique travel experience. The company systematically commits to environmental care and social awareness, continuously promoting policies that contribute to a better world. Its purpose is "Connecting much more than two shores." 

About Banco Santander Uruguay 

Santander Uruguay began operations in 1982. Known for developing a universal banking model through all channels, the institution has established itself as the leading private bank in the country. Currently, it holds a market share of around 30% in private banking. It serves over 500,000 clients and plays a significant role in the card market, offering additional benefits with more than two hundred brands. The institution has more than 40 customer service centers across the country. The bank was recently recognized as the Best Bank in Uruguay by the prestigious financial publication Euromoney. 

About IFC