Punta Arenas is the capital city of Chile's southernmost region, Magallanes and Antarctica Chilena. It is the largest coastal city south of the 46th parallel south and one of the most southerly ports in the world, serving as an Antarctic gateway city. It is also one of only two free ports in Chile, the other being Iquique in the country's far north.
Punta Arenas was founded in 1848 as a penal colony by the Chilean government, and grew rapidly due to waves of European immigrants during the gold rush and sheep farming boom of the late 19th century. It is now a major port for maritime traffic and trade travelling between South and North America. Its geopolitical importance is still relevant in the 21st century, as it serves as a logistical base for access to the Antarctic Peninsula. The city also has its own time zone, UTC−3, and gets its water from San Juan River.

History

Two early Spanish settlements, Nombre de Jesús and Ciudad del Rey don Felipe (later known as Puerto del Hambre), were attempted along the Straits of Magellan in an attempt to protect Spanish shipping and prevent piracy. The first failed due to harsh weather and difficulty in obtaining food and water, while the second was eventually abandoned after English pirate captain Thomas Cavendish rescued the last surviving member in 1587.
In 1843, the Chilean government sent an expedition to build a fort and establish a permanent settlement on the Strait of Magellan. The settlement was moved to its current location, along the Las Minas River, and renamed Punta Arenas in 1848. In the mid-19th century, Punta Arenas was used as a penal colony and disciplinary posting for military personnel with problematic behavior. The settlement also received immigrants from Europe and other parts of the world. During this period, two mutinies occurred in Punta Arenas - one in 1851 and the other in 1877 - leading to violence and destruction. Despite these events, the settlement continued to grow as sheep farming, gold mining and trade via sailing ships became increasingly popular.
By 1890, the Magallanes region had become an important sheep-raising region, with one company controlling over 11,000 square kilometres. The harbour of Punta Arenas, although exposed to storms, was considered one of the most important in Chile before the construction of the Panama Canal and was used by ships transiting between the Atlantic and Pacific oceans. Today it is mostly used for tourism cruises and scientific expeditions.