Since 1977, Punta Arenas has been one of only two free ports in Chile, the other being Iquique in the country's far north. Located on the Brunswick Peninsula north of the Strait of Magellan, Punta Arenas was originally established by the Chilean government in 1848 as a small penal colony to assert sovereignty over the Strait. During the remainder of the 19th century, Punta Arenas grew in size and importance due to increasing maritime traffic to the west coasts of South and North America. The city's growth was also due to waves of European immigrants, mainly from Croatia and Russia, attracted by a gold rush, and sheep farming boom in the 1880s and early 20th century. The largest sheep company, which controlled 10,000 square kilometres in Chile and Argentina, was based in Punta Arenas, and its owners lived there. More information...
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