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ISSUE 011 · RESEARCH EXPLAINER

Why is Villeta an industrial hub?

Port access, energy, proximity to Asunción and investment that is changing Paraguay’s industrial map

Villeta’s advantage is not explained simply by the presence of factories. Its port on the Paraguay River, road access, electricity infrastructure, proximity to the metropolitan area and new investment across several sectors create a combination that can reduce difficulties between production and logistics.

The main conclusion

Villeta is one of Paraguay’s clearest candidates for an industrial hub. ANNP’s port terminal, access via PY01 and Acceso Sur, the Villeta and Buey Rodeo substations and proximity to Asunción provide a favorable base. But investment decisions remain site-specific: firm power, actual distance to the port, land, permits, labor and logistics costs must be checked for each project.

LOCATION SNAPSHOT

Five figures for understanding the location

28 kmFrom Asuncióndistance published by ANNP
13.5 haVilleta portterminal area
430 mQuayport frontage
120/60/60 MVABuey Rodeotransformer bank capacity
30 MVAVilleta substationtransformer added in the 2024 modernization
01 · LOCATION

Close to the metropolitan area and directly connected to the Paraguay River

ANNP locates the Villeta Port Terminal approximately 28 km from Asunción, at kilometer 353 of the Paraguay River. It publishes two main road access routes—PY01 and Acceso Sur—and handles both imports and exports.

For industry, this combination can bring metropolitan management, services and talent closer to river logistics. However, actual door-to-port travel time and trucking costs depend on the site, time of day, cargo type and specific operation.

02 · PORT INFRASTRUCTURE

Villeta port has operating infrastructure, not just a riverside location

ANNP reports a 13.5-hectare terminal, 430 meters of quay frontage and a 10-foot draft throughout all 365 days. It also lists cranes of up to 120 tonnes, container equipment and bulk cargo facilities.

ANNP itself describes the area as industrial and mentions a Bolivian free zone for goods in transit. This shows the proximity of industry and logistics, although it does not mean every company has the same contractual conditions or priority in using the port.

03 · ELECTRIC POWER

ANDE has strengthened electricity capacity to support industrial growth

In 2022, ANDE inaugurated the 220/66/23 kV Buey Rodeo Substation in Villeta, with a 120/60/60 MVA transformer bank and nine new medium-voltage feeders. ANDE explicitly linked the project to increased power availability and the possibility of establishing new industries.

In 2024, modernization of the Villeta Substation added a 30 MVA transformer and 66/23 kV equipment to increase power and reliability. Even so, regional capacity does not mean guaranteed firm capacity for every site; large consumers require a connection study.

04 · INDUSTRIAL DIVERSIFICATION

Growth already spans agricultural inputs, food, electrical conductors, biofuels and green fertilizers

In addition to Tecnomyl, Villeta hosts or attracts investment in food, electrical conductors, oils and biofuels, and green fertilizers. MIC has recently publicized Retail S.A.’s bakery plant, green fertilizer projects and industrial operations such as Cremer Óleo.

Diversity matters because Villeta’s investment case does not depend on a single industry cluster. Different sectors can benefit from similar combinations of energy, land, logistics and access to the metropolitan market.

05 · TECNOMYL CASE

For Tecnomyl, Villeta is a manufacturing base within a wider logistics network

Tecnomyl locates its plant in Parque Industrial Avay, Villeta, describing it as around 40 km from Asunción and close to Villeta port. Its corporate publication reports 20 hectares and approximately 50,000 m² of buildings, producing crop protection and biological products.

The model does not end in Villeta: the company is strengthening logistics in Ciudad del Este and serves markets such as Brazil and Bolivia. Villeta should therefore be understood as a manufacturing location connected to other distribution and export points.

06 · GREEN INDUSTRIALIZATION

The opportunity is to turn renewable energy into exportable industrial products

Villeta also attracts projects seeking to use renewable electricity to produce fertilizers with lower carbon intensity. MIC has linked Atome Energy’s project to the waterway’s logistics conditions and Paraguay’s renewable energy availability to serve domestic and export markets.

The advantage does not depend only on the electricity price. Power, transmission, port facilities, inputs, purchase contracts and logistics must be integrated to turn energy into a higher-value industrial product.

07 · SITE-SPECIFIC RISKS

Seven conditions to check before choosing a site

① Available firm power, ② substation connection conditions, ③ actual distance to the port, ④ congestion and truck access, ⑤ drainage, flood exposure and soil, ⑥ environmental permits and water/waste treatment, and ⑦ access to labor within a reasonable distance.

Port access, energy and proximity to Asunción can give Villeta a structural advantage, but do not automatically make every site a good investment. Evaluation must combine Land + Power + Logistics + Permits + Labor.

08 · INVESTOR FRAMEWORK

Five layers for assessing Villeta

PARAGUAY INSIGHT proposes assessing Villeta through five layers: PORT → POWER → ROAD / ASUNCIÓN ACCESS → INDUSTRIAL ECOSYSTEM → EXPORT MARKET.

When all five work together, Villeta can serve as a platform for manufacturing in Paraguay and supplying regional markets. If one layer becomes a bottleneck, another location may be better depending on the sector.

ISSUE 011 · PILLAR ARTICLE

Read about Villeta within Tecnomyl’s strategy

The Company Spotlight in Issue 011 connects manufacturing in Villeta with biological inputs, IFC capital, logistics in Ciudad del Este and expansion into Brazil and Bolivia.

Read the Tecnomyl Company Spotlight →

Read Biological inputs in Paraguay →
Read IFC × Tecnomyl →