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Monday, March 21, 2011

LAN Airlines S.A. NYSE: LFL is an airline based in Santiago, Chile. LAN is currently positioned amongst the largest airlines in Latin America, serving Latin America, United States, Canada, the Caribbean, Oceania, and Europe. It is a member of the oneworld airline alliance.

Its main hub is Comodoro Arturo Merino Benítez International Airport, Santiago, with hubs/focus cities at Ministro Pistarini International Airport in Buenos Aires, José Joaquín de Olmedo International Airport in Guayaquil, Jorge Chávez International Airport in Lima, Barajas International Airport in Madrid and at Miami International Airport.

The airline was founded by Chilean Air Services Commander Arturo Merino Benitez (for whom the Arturo Merino Benítez International Airport was named some years later), and began operations on March 5, 1929 as Línea Aeropostal Santiago-Arica. It took the name Línea Aérea Nacional de Chile (LAN Chile) in 1932.

In 1970 the airline had its headquarters at Los Cerillos Airport.

In September 1989, the Chilean government privatized the carrier, selling a majority stake in the company to Icarosan and Scandinavian Airlines.

The approval from the Chilean Anti-monopolies Board resulted in the acquisition of control of the country's second airline Ladeco on August 11, 1995. In October 1998 LanChile merged Fast Air with Ladeco. In March 2004 Lan Chile and its subsidiaries LAN Perú, LAN Ecuador, LAN Dominicana and LANExpress became unified under the single LAN brand, instead of prior Linea Aerea Nacional. On June 17, 2004 LAN Chile changed its formal name to LAN Airlines (which was said to mean Latin American Network Airlines, even though the airline says LAN is no longer an abbreviation now) as part of this re-branding process. In mid-2005 LAN opened its subsidiary LAN Argentina in Argentina and operates national and international flights from Buenos Aires, being the third largest local operator behind Aerolíneas Argentinas and Austral. This subsidiary is also under the single LAN brand.

LAN Airlines has the following subsidiaries and shareholdings: LAN Cargo (99.4%), LAN Express (99.4%), ABSA - Aerolinhas Brasileiras (73.3%), LAN Perú (70%), LAN Dominicana (49%), LAN Ecuador (45%), LAN Argentina (49%), MasAir (39.5%) and Florida West International Airways (25%). It also has 11,173 employees.

LAN codeshares with American Airlines and Alaska Airlines to U.S. destinations, British Airways and Iberia to European destinations, to Brazilian internal destinations with TAM Linhas Aéreas, to Asian destinations with Cathay Pacific and Korean Air, and some destinations in Australia and New Zealand with Qantas.

As of August 1, 2006, LAN Airlines merged first and business classes of service into a single class, named Premium Business.

In 2008 LAN was voted the best airline in South America.

On August 13, 2010, LAN signed a non-binding agreement with Brazilian airline TAM Airlines to merge to form LATAM Airlines Group.

On October 28, 2010, LAN has acquired 98% ot the shares of AIRES the second largest carrier in Colombia.

Tuesday, October 19, 2010

Chile twitter

Chile miner's warning 'was ignored'

Chilean investigators are looking into reports that operators ignored warnings from one of the miners before the collapse that trapped 33 men.

Deputy Carlos Vilches, a legislative commission member, said that miner Juan Llanes has alleged operators refused his request to leave the mine three hours before it collapsed on August 5.

Llanes reportedly had heard loud sounds that indicated a collapse was brewing.

Vilches is overseeing the opening of a public exhibit of the capsule used in last week's rescue of the miners after 69 days underground.

The exhibit in the plaza outside Chile's presidential palace in the capital Santiago, is drawing hundreds of people.

Tuesday, August 3, 2010

Chile market-oriented economy characterization

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports account for more than one-fourth of GDP, with commodities making up some three-quarters of total exports. Copper alone provides one-third of government revenue. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Growth in real GDP averaged 8% during 1991-97, but fell to half that level in 1998 because of tight monetary policies implemented to keep the current account deficit in check and because of lower export earnings----

Chile market-oriented economy characterization

Sunday, March 14, 2010

Chile will take years to recover from quake impact: president

Chilean President Sebastian Pinera has said the Feb 27 earthquake and the following tsunami had cost the nation tens of billions of dollars and left an impact that would be felt for years.

Pinera Friday said at a press conference that the 8.8-magnitude earthquake, the fifth largest ever recorded in the world, would also make Chileans spiritually stronger, Xinhua reported.

'The people of Chile have shown their courage. I believe we will be able to overcome this tragedy,' he said.

Nearly 500 people were killed and two million injured or displaced in the temblor and the resulting tsunami.

The president added that reconstruction work after the quake will last many years and will require an adjustment to the nation's budget plan for the current year.

'There will be austerity in public spending, moving money from lower priority projects to reconstruction projects,' said the president, already well known for being a billionaire before he won the Jan 17 presidential election runoff.

'We will also use part of savings...to boost reconstruction plans,' Pinera said. As the biggest copper exporter in the world, Chile has saved $11 billion during the years of high copper prices. The nation owns the National Copper Corporation of Chile (Codelco), the world's largest copper company.

This weekend, Pinera said he will leave on an inspection tour of some of the worst quake-hit cities and towns, including Concepcion, Talcahuano, Dichato, Pelluhue, Cauquenes, Talca, Iloca and Curico.

Source:sify.com/

Chile May Borrow Abroad, Tap Its Copper Savings to Rebuild

March 13 (Bloomberg) -- Chilean President Sebastian Pinera plans to tap copper savings funds and may borrow abroad to pay for the estimated $30 billion cost of repairing damage caused by the 8.8-magnitude earthquake that struck the country Feb. 27.
More than 500 Chileans died in the quake and the tsunami that followed it, Pinera said yesterday. That death toll will probably rise as more bodies are identified and because of the “many people” still missing, he said.
The country has been left poorer by the earthquake, he said, citing damage done to homes, schools, hospitals and infrastructure. Last month’s quake, the world’s fifth biggest in the past century, was a “calamity” for Chile, Pinera said.
“Chile is poorer than a few weeks ago,” Pinera told reporters in Santiago yesterday. “We’re poorer for the loss of life, we’re poorer for the loss of economic wealth.”
Pinera said he plans to rewrite the 2010 budget to free up resources for a reconstruction fund, adding the government will also tap its savings. Chile has $11.3 billion invested overseas in an economic stabilization fund that the government can use to finance a budget deficit. Using money from the fund could mean selling dollars to buy pesos, boosting the Chilean currency.
“We will study the possibility of contracting debts overseas,” Pinera said. “Chile has hardly any public sector debt.”
Chile, South America’s fifth-largest economy with gross domestic product of $169 billion, is a net creditor, with more in its offshore savings funds than it owes. The country has $1.75 billion of international bonds outstanding, all due before the end of 2013, according to data compiled by Bloomberg.
Loan Offers
Multilateral lenders such as the World Bank, the Inter- American Development Bank and Caracas-based Corporacion Andina de Fomento have offered to lend Chile money, Finance Minister Felipe Larrain said.
“The options are there, but before that we have to look at the numbers and see how much we’ll need in financing,” Larrain said. “We’re still working on the budget and analyzing the different items in the budget to see how to allocate resources to reconstruction.”
Chile’s government will spend $300 million on cash handouts to the poor, Larrain said. Pinera signed the bill authorizing the payments in his first legislative act as president, and it will be sent to Congress on March 15, Larrain said.
The government hopes to make the first payments this month, the finance minister said.
The high price of Chile’s main export, copper, may also help pay for reconstruction, the president said.
Years of Rebuilding
Rebuilding “won’t last weeks or months,” Pinera said. “It will last years, because the magnitude of the damage caused is on a scale never before seen in Chile,”
Chile’s new government will need to weigh the advantages of borrowing in dollars, which may push up the peso, and borrowing in pesos, which could push up the cost of selling bonds for Chilean companies.
“If they tap too much domestically, they’ll crowd out the private sector, which needs funds for reconstruction,” said Rafael de la Fuente, chief Latin American economist at BNP Paribas SA in New York. “If they go abroad, they put pressure on the currency. That’s the trade-off.”
The peso rose 3.1 percent in the five days following the quake, the most of any of the seven Latin American currencies tracked by Bloomberg, on speculation the government would need to sell dollars to pay for rebuilding. Since then it has depreciated 1.8 percent, the most of 26 emerging-market currencies, after central bank President Jose De Gregorio said it may have “overshot.”
Chile’s peso will begin weakening late this year as the earthquake, economic growth and record-low interest rates sap demand for fixed-income assets, said Guillermo Osses, who helps oversee $50 billion in emerging-market assets at Pacific Investment Management Co.
The peso may slide to 550 per dollar in a year and to as weak as 600 in an “extreme case,” Osses said.

Source:businessweek.com/

Flagstone estimates Chile quake claims at $50M

Flagstone Reinsurance Holdings Ltd. said Friday its estimated losses from claims related to the recent earthquake in Chile will be $50 million.

In addition, the Bermuda-based insurer and reinsurer estimates claims from Windstorm Xynthia, which hit Western Europe on Feb. 27, at $3 million to $6 million.

The estimates are preliminary, and net of reinstatement premiums and retrocession.

Flagstone said it could significantly revise the estimates as more information becomes available. In Chile, which has been hit by a series of aftershocks following the initial Feb. 27 earthquake, inspections of damaged buildings will take months, Flagstone said.

Shares of Flagstone fell 6 cents to $11.20 in midday trading.

Source:businessweek.com/

Goldcorp Projects in Chile, Quebec to Underpin Growth

March 12 (Bloomberg) -- Goldcorp Inc., the world’s second- largest gold producer by market value, said its El Morro project in Chile and Eleonore in Quebec will become the company’s biggest sources of growth by 2015.
Sales of copper from El Morro will more than pay for the costs of gold production at the project, Chief Executive Officer Chuck Jeannes said today in a telephone interview. Eleonore’s gold-production cost is estimated at $400 an ounce, lower than the company’s overall 2010 costs, not including byproducts, of $450 an ounce, he said.
Jeannes is looking to keep production rising beyond 2014, when Vancouver-based Goldcorp is aiming to produce 3.8 million ounces of the precious metal a year, from a forecast of 2.6 million ounces this year.
The company announced in January that it planned to acquire El Morro from Xstrata Plc. in a transaction with Xstrata partner New Gold Inc. Goldcorp advanced New Gold $463 million to allow New Gold to acquire the 70 percent of El Morro it didn’t own and then agreed to pay New Gold an additional $50 million to get full control of the project. The transaction blocked Barrick Gold Corp.’s earlier offer to acquire the mine for $465 million.
Barrick, the world’s biggest gold producer, claims Goldcorp’s deal with New Gold is illegal and asked a judge to halt the sale.
Goldcorp gained control of Eleonore as part of a $420 million equity transaction completed in 2006.
Goldcorp fell 78 cents, or 1.9 percent, to C$40.09 at 4:16 p.m. in Toronto Stock Exchange trading. The shares have declined 3 percent this year.

Sourc:ebusinessweek.com/

Chile quake, Finland strike behind pulp price increase

MONTREAL–Canadian pulp producers are expected to benefit from a sustained improvement in the forestry product's pricing caused by the Chilean earthquake and a strike in Finland, analysts say.

Chile accounts for about 8 per cent of the world supply of pulp. Reports suggest that six of the South American country's pulp mills have been shut since the Feb. 27 earthquake.

The mills produce an estimated 3.8 million tonnes of pulp annually. The quake has removed 300,000 tonnes of monthly supply, or 7 per cent of the world's pulp production.

In Finland, a strike by port workers that started March 4 has cut off most exports and forced newsprint and pulp mills to close. The Nordic country exports about 1.5 million tonnes of pulp annually.

As a result, pulp prices have risen in the United States, Europe, and China and more are expected because suppliers have limited ability to build inventories before normal spring maintenance downtime. But newsprint prices are down after recovering in recent months.

Sourc:ethestar.com/

Sunday, March 7, 2010

Symbolic building demolished in quake-hit Chile

CONCEPCION, Chile — Workers demolished a fallen 15-story apartment building that has come to symbolize Chile's earthquake after officials said there was no more hope for finding survivors inside.

The only known remaining victim not recovered from the Alto Rio building was 21-year-old Jose Luis Leon, whose father on Saturday shouted desperately into holes in the concrete cut by rescuers looking for trapped victims.

"Jose Luis! Jose Luis!" cried Jose Leon, who had been given permission by authorities for one last search through the rubble for his son.

There was no answer.

Shortly afterward, a yellow excavator began clawing into the concrete slabs and twisted metal to completely demolish the structure whose collapse during the Feb. 27 earthquake had moved Chileans. U.N. Secretary-General Ban Ki-moon visited the fallen apartment building in the quake-shattered city of Concepcion on Saturday.

"I am convinced that with your bravery and strong determination, you will rise back on your feet again to build a better future," Ban told Chileans.

Emergency workers said continuing aftershocks have made the rubble too unstable for firefighters to continue looking for Jose Luis Leon and there is no hope of finding more survivors in the Alto Rio building.

"The family understands that there is nothing else the firefighters can do," Cmdr. Juan Carlos Subercaseaux told Chile's Radio Cooperativa, suggesting that the son's body might be recoverable for burial once the demolition is done.

At least seven significant aftershocks shook Chile on Saturday, the largest with a preliminary magnitude of 5.1, according to the U.S. Geological Survey.

No additional damage or injuries were immediately reported, but aftershocks have dangerously weakened buildings all across the disaster zone, including a 22-story office tower whose now-exposed upper floors have partly pancacked and threaten to crash down onto downtown Concepcion. The city's mayor has announced at least five contracts for controlled demolitions of such buildings.

At least 500,000 homes were destroyed, but the figure could reach 1.5 million once surveys are complete, Housing Minister Patricia Poblete said.

At least the Leon family knows the body is somewhere inside the wreckage of the Alto Rio. A week after the 8.8-magnitude earthquake and tsunami, hundreds of people are still searching for relatives with the help of community radio station Bio-Bio, which broadcasts their appeals day and night. With power still out in vast stretches of the disaster area, phone lines downed and cell service spotty, communication was difficult or impossible for most survivors.

U.N. programs already have delivered many tons of relief supplies and other aid, including 79 metric tons of high-energy biscuits and other food, enough to feed 35,000 children for five days.

Chileans also are helping themselves: The military is leading a massive relief and recovery effort, with air force planes landing every half hour in Concepcion, and a 24-hour national telethon aimed at collecting $30 million Saturday.

That's just a tiny fraction of the up to $30 billion experts have estimated will be needed for the recovery effort — a huge amount for a country with an annual budget of $42 billion, even though Chile has saved more than $11 billion in copper profits from the state-owned Codelco mining company.

Police flying over the destroyed port in the neighboring city of Talcahuano located another man's body, and divers recovered a boy's body in the coastal town of Pelluhue. In Chile's remote Juan Fernandez islands, where five were killed and 11 swept away in the tsunami, a burial service was held for 14-year-old Maite Arredondo.

With the tsunami wiping away entire communities and stranding wreckage miles inland in mainland Chile, the death toll has been difficult to determine. After first reporting higher figures, the Chilean Interior Department said it would release only the number of identified dead: 452 as of the latest announcement, on Friday.

Source:AFP

Wednesday, March 3, 2010

For Chile's Bachelet, decision to call on army was weighty

Reporting from Mexico City - Given the family history of Chilean President Michelle Bachelet, it is with some irony that she has been forced in the final days of her government to call on the army to rescue her earthquake-ravaged nation.

As a young woman, Bachelet was jailed and tortured by the military dictatorship of Gen. Augusto Pinochet. Her father, an air force general who opposed the 1973 military coup, died in jail.

But now, faced with large-scale looting and food shortages, Bachelet, who heads the fourth consecutive center-left government since Pinochet's 1990 ouster, has sent in the troops.

And so far, the move has been met with wide public approval -- testament to the depth of the emergency, the high level of popular support for Bachelet, and a modern military.

It is not a decision she made lightly; she arrived at it only after intense debate within the government, say experts and people who know her.

"She has the credibility and the political capital to take a step like this," said Peter DeShazo, director of the Americas Program at the Center for Strategic and International Studies and a former U.S. State Department official in charge of Latin America.

Given her history, Bachelet, a Socialist, will be trusted by many Chileans to act to preserve law and order without allowing human rights to be violated, DeShazo added.

If anything, Bachelet, 58, has been criticized in some quarters for not sending in the army more quickly after the magnitude 8.8 quake struck early Saturday, with some Chileans questioning whether her leftist politics slowed her hand. President-elect Sebastian Pinera, who takes office March 11, subtly took a stab at Bachelet saying, after she announced the army deployment Sunday, that he was glad she had finally taken his suggestion.

Chile remains a fundamentally conservative country, socially, politically and economically. Preserving order is of primordial importance to large segments of society, and some Chileans are willing to risk a return to authoritarianism amid the threat of a much-feared "social explosion."

Long before her election four years ago, Bachelet worked to build a good relationship with Chile's democracy-era military. Under the presidency of mentor Ricardo Lagos, she served as defense minister, the first woman to hold that post in South America. Her work in cultivating mutual trust was instrumental in her victory in the 2006 election.

Bachelet's father, Alberto, was sympathetic to the democratically elected, leftist government of Salvador Allende. When Allende was overthrown by Pinochet, Bachelet's father was imprisoned and tortured. He died of a heart attack while in custody in 1974.

The next year, Bachelet and her mother were also imprisoned and tortured. They were allowed to go into exile, eventually settling in East Germany. Bachelet returned to Chile in 1979, finishing her medical studies and practicing as a pediatrician.

Before the quake, Bachelet was enjoying approval ratings around an extraordinary 80%, in large part because she is credited with shielding Chile from the global economic crisis of the last couple of years.

The Chilean Constitution barred her from seeking a consecutive term, and, unlike many of her counterparts in Latin America, she was bowing out gracefully, even when Pinera, a right-wing billionaire from the opposition, defeated her party in elections in January.

Speaking Tuesday, Bachelet reiterated the need for the military, saying that nearly 14,000 troops had been dispatched to restore order but also to assist in distribution of aid.

"Help will arrive," she said. "You can always feel that things could have been done better, but the truth is it will always be insufficient."

Source:latimes.com/

Tuesday, March 2, 2010

Elliott Yamin in need of diabetes supplies in Chile

Former American Idol contestant Elliott Yamin told Fox that he’s fearing for his health, as he’s running out of medical supplies to treat his Type 1 diabetes while he’s stuck in the earthquake-ravaged Chile. “I only packed enough insulin supplies for my pump to last a couple more days, so I’m starting to worry,” he told Fox. “I don’t know how long we’re going to be here. This country isn’t very keen on insulin pumps; supplies for my pump are running low. Hospitals here are very crowded, and as you can imagine, they are dealing with bigger things.” Yamin was in Chile to perform at a musical festival 90 miles outside Santiago. (It’s since been relocated to Santiago.)

He might be worried for his health, but Yamin seems to be more optimistic on his Twitter account. Though he had tweeted a disconcerting message a few hours ago — “i think im starting to have post traumatic stress, as i reflect on where ive been over the last 2 weeks, and what ive been thru..altho im safe, alive,and well,still experiencing aftershox,and will b restless until i touch down on american soil” — his tweets have since brightened: “Wow, this is actually a very beautiful city!”

Source:news-briefs.ew.com/

Chile earthquake may have shortened length of Earth's days

The Chilean earthquake has shortened the length of the day by making the Earth rotate faster, according to NASA scientists.
But you might not have noticed, as it was only by about one-millionth of a second.
Richard Gross has revealed the disaster shortened the length of a day by about 1.26 microseconds (a microsecond is one millionth of a second).

The Chilean disaster has shortened the length of the day by 1.26 microseconds
The 8.8-magnitude disaster struck the South American country on Saturday, killing at least 795 people and injuring hundreds more.
The quake would have moved the axis of the planet by about 8cm.
Mr Gross, of NASA's Jet Propulsion Laboratory in Pasadena, California, said the 9.1-magnitude Sumatran earthquake in 2004 has also shortened the length of day by 6.8 microseconds.
He claimed the calculated changes in the length of a day are permanent.
However, Mr Gross added: ‘These changes are very, very small.’
The length of a day is the time it takes for the planet to complete one rotation - 86,400 seconds or 24 hours.
An earthquake can make Earth rotate faster by nudging some of its mass closer to the planet's axis, just as ice skaters can speed up their spins by pulling in their arms.
Conversely, a quake can slow the rotation and lengthen the day if it redistributes mass away from that axis, Mr Gross added.

Source:dailymail.co.uk/

Chile Looting Eases as Aftershocks Persist

Aftershocks continue to rattle Chile, days after the devastating 8.8 earthquake.

In the first 72 hours after Saturday's quake, there were 131 aftershocks of magnitude 5 or greater.

Complete Coverage: Earthquake in Chile
How to Help: Aid Organizations, Mobile Giving

And officials continue to count the dead. Chile's National Disaster Office says almost 800 are now known to have died.

One town is using a church as a morgue. In another, people are burying the dead quickly because the funeral home has no electricity.

Most of the deaths came in communities along Chile's south-central Pacific coast, near the quake's epicenter, where tsunami waves swept the shore.

Among the victims were 40 retirees enjoying summer vacation at a seaside campground. The tsunami hit them in three waves, surging 200 meters into the resort town of and dragging away the bus they'd piled into, hoping to get to high ground.

Aid is starting to arrive in Chile, including 25 satellite phones from the United States dropped off today by Secretary of State Hillary Rodham Clinton.

More coverage of the earthquake in Chile

Chile Quake May Have Shortened Earth's Day
Tsunami Swept Bus with Retirees into Ocean
Small Plane Carrying Aid Crashes in Chile
Chileans Cope, Awaiting Aid
Chile: Aid Trickles Out but Looters Remain

Argentina has flown in a field hospital, while Brazil and Peru are sending cargo planes with supplies, hospitals and doctors.

Chilean troops have been dispatched to the earthquake zone to discourage looting, and officials have begun handing out food and water.

When supplies arrived in the central Chilean city of Constitucion, people didn't cheer. They jeered, furious with Chile's president that it took so long, reports CBS News Correspondent Mark Strassmann.

"She should come here," one man said, referring to Chile President Michelle Bachelet. "We need help. We don't have anything here."

Relief workers have their own frustration, Strassmann reports. With so many collapsed and closed roads and bridges, many areas desperate for help are cut off, and works have to hear yet again "You can't get there from here."

Looting Eases in Concepcion

CONCEPCION - Looting has eased in Chile's second-largest city after 1,500 troops arrived to enforce a curfew.

Nearly every store in Concepcion has been looted following the weekend earthquake that left much of the city in ruins. Some stores were set on fire.

Chile's president, Michelle Bachelet, says 14,000 soldiers and marines have been deployed for security across the earthquake zone, and hundreds of tons of food, water and other basics are being flown in.

The magnitude 8.9 quake early Saturday has killed at least 723 people. Most of the deaths have been in communities along Chile's south-central Pacific coast, closest to the epicenter.

The quake set off a tsunami that sent waves 200 yards into one resort town, destroying about 300 homes and dragging away a bus carrying 40 vacationing retirees.

Clinton Promises More Aid

SANTIAGO - The secretary of state has delivered satellite phones - and Clinton is promising more aid to earthquake-ravaged Chile as it recovers from the deadly disaster.

At a news conference today with Chile's president in Santiago, Clinton said the U.S. would also send water purification systems and a mobile field hospital with surgical capability that is "ready to go."

Clinton said the U.S. is "ready to help in any way" that Chile requests.

Chile's president said her country also needs temporary bridges and cash donations to buy food and medicine, as well as generators.

Search of Toppled Apartment Building Resumes

CONCEPCION - The search for survivors has resumed at a toppled apartment building in the Chilean city of Concepcion.

Firefighters have already pulled 25 survivors and nine bodies from the structure, heavily damaged in Saturday's quake.

Security in the city is still a concern. A curfew that was in effect overnight has been extended until noon today, in an effort to crack down on looting.

Most markets in the city have been ransacked by looters, and by people desperate for food, water, toilet paper and other essentials. Troops were sent in, and dozens of arrests have been made.

All along the coast, in areas affected by the quake, food is scarce and destruction is widespread. In one community, the local church is serving as a morgue. In another, people quickly buried their dead because the funeral home has no electricity.

Chile's president says authorities are flying hundreds of tons of food, water and other basics into the region.

© MMX, CBS Interactive Inc.. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

Source:cbsnews.com/

Chile steps up aid to desperate quake victims

CONSTITUCION, Chile - Chile's government used helicopters and boats to speed up the delivery of food to hungry survivors on Tuesday as the death toll rose to nearly 800 three days after a devastating earthquake and tsunami.

Chileans desperate for food and water swarmed soldiers as an army helicopter touched down in the ruined coastal town of Constitucion, which was hit by three giant waves set off by Saturday's 8.8-magnitude earthquake.

The government dispatched more troops to restore order in Concepcion, Chile's second-largest city, which was placed under curfew for 18 hours a day after looters raided stores and burned a supermarket.

There were no reports of major outbreaks of looting on Tuesday and President Michelle Bachelet said order had been restored in the city, which bore the brunt of the quake along with coastal towns that were also devastated by tsunamis.

Constitucion, with a population of nearly 40,000, accounts for nearly half of the official death toll, which Bachelet said had risen to 795. Surrounded by three hills, the city was turned into a ruin of flattened homes and toppled buildings. Wooden homes perched atop the hillsides were among the only buildings left standing.

Dozens of bodies were lined up on the floor of a makeshift morgue in a high school gymnasium, where people cringed at the pungent smell of death as they scoured a list of victims.

Officials estimated that between 100 and 500 people in the city are still missing.

Many Chileans complained that scores of deaths could have been avoided had the government responded faster to the earthquake, which set off a roaring tsunami a few hours later that killed many who had survived the quake.

"Nobody showed up around here to warn us," said Alejandra Jara, a 28-year-old resident of La Pesca, a small fishing village just north of Constitucion.

"We fled on our own because we know that when there's a big earthquake, you have to leave everything and take off."

Manuel Parra, who also ran for higher ground, was one of many residents whose seafront homes were washed off foundations. "Those who went inland up the hill survived. Those who didn't are no longer here," said the 64 year-old.

The government has acknowledged that rescue efforts have been slow, in part because of mangled roads and power cuts. But officials also misjudged the extent of the damage, initially declining offers for international aid.

TENSIONS HIGH

The looting and violence that followed the quake prompted some people in Concepcion to band together to protect their homes, armed with sticks and shotguns.

With tensions high in Concepcion, soldiers were delivering food and other basic supplies house to house.

Food, blankets and medical equipment were being sent to some of the estimated two million people affected by the quake, but residents complained of skyrocketing prices for everyday staples like bread and milk.

Making a stop on a tour of Latin America, U.S. Secretary of State Hillary Clinton delivered 20 satellite phones to help in relief efforts. Bachelet, who is in her last days in office, said Chile was now asking other countries to help supply desalination plants and power generators.

Most of Concepcion remained without water and electricity as rescue teams used shovels and drills to find possible survivors in the rubble of a collapsed 14-story apartment block.

The looting and a growing perception that government relief efforts have been slow have tainted the country's hard-earned image as Latin America's beacon of order and stability.

But both the human and economic cost could have been a lot worse given the size of the quake, one of the world's biggest in the past century. Chile's rigid building codes left it much more prepared for a quake than Haiti, where more than 200,000 were killed in January in a 7.0-magnitude quake.

ECONOMIC DAMAGE

Chile has the most stable economy in Latin America but the huge quake and tsunamis have hit its efforts to climb out of a recession triggered by the global economic downturn.

Some analysts estimate the damage could cost Chile up to $30 billion, or about 15 per cent of its gross domestic product. But Bachelet said it was too early to tell.

Asked what it would cost to rebuild, Bachelet replied: "I can only say it will be a lot."

The disaster also hands billionaire businessman Sebastian Pinera a mammoth challenge days before he is sworn in as Chile's new president.

Pinera ran for office pledging to boost economic growth to an average of 6 per cent a year and create a million new jobs. On Tuesday, he said the quake had not altered his economic goals.

"Those figures remain," he said, adding that the reconstruction phase could accelerate growth and job creation.

The government has forecast the economy will grow between 4.5 per cent and 5.5 per cent this year.

Chile is the world's leading copper producer and supply concerns at first pushed global copper prices sharply higher but the country's main mines have resumed work and prices fell sharply on Tuesday.

The Chilean peso gained more than 1 per cent on Tuesday on bets that the government and pension funds will repatriate offshore funds to pay for the reconstruction effort.

The central bank has said it would keep interest rates at record lows to help stimulate the economy.

Source:montrealgazette.com/