Argentina’s southern naval base caught between US interest and a lack of funds

Javier Milei says a planned naval base in Tierra del Fuego will become a major logistics hub in the South Atlantic. The project, however, remains caught between the president's strategic ambitions, severe defense cuts and growing U.S. interest in Argentina's far south.

“This base will turn us into the most important logistics hub in the South Atlantic and will be fundamental to Argentina's geopolitical projection,” Milei said Thursday in a national address defending Argentina's sovereignty claim over the Falkland Islands. He also announced sanctions against companies exploiting natural resources in the archipelago.

The base project dates back to discussions in 1990, while its formal design began in 2010. The most significant progress came during Alberto Fernández's presidency from 2019 to 2023, when workers leveled the site and built a concrete foundation. That first stage received about 25 billion pesos, then valued at $16 million.

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This base will turn us into the most important logistics hub in the South Atlantic and will be fundamental to Argentina's geopolitical projection.

Construction stopped after Milei took office in December 2023 because of his broad budget adjustment. The project is intended to provide military and logistical infrastructure to replace Ushuaia's existing naval base, which does not have its own pier, and create a resupply and support center for vessels traveling between Tierra del Fuego and Antarctica.

Specialists estimate the full project would cost between $300 million and $500 million and take up to 10 years. Milei recently ordered changes to the Defense Ministry's budget, and Foreign Minister Pablo Quirno said the decree reallocates funds for the base. Experts point to a contradiction between that announcement and the reality of defense spending. Allocations were cut by nearly 60 million pesos, or about $39,000, in May, contributing to a salary crisis and reduced medical benefits at the Armed Forces and Security Forces' social insurance institute. “If you don't fix that first and give the sector health coverage, it is very difficult to talk about increasing the military presence in the South Atlantic,” said Fernando Morales of the Argentine Naval League. The article also highlights U.S. interest in the area because of its access to Antarctica.

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If you don't fix that first and give the sector health coverage, it is very difficult to talk about increasing the military presence in the South Atlantic.