By 2006 the economy of Punta Arenas and the region had diversified considerably, and the city is vibrant and modern. Chile's principal oil reserves, though small, are located here, along with some low-grade coal. A modern methanol plant is located a short distance from the city. Agricultural production, including sheep and cattle, continues to play a significant role, while tourism has contributed to its popularity and steady growth. Fisheries and silvi culture are also significant here. A regular ferry service connects Punta Arenas with the main island ofTierra del Fuego and a less frequent ferry runs to the Chilean town of Puerto Williams. A modern airport serves international connections and is often a stopping point for aircraft going to or coming from Antarctica. Paved highways connect Punta Arenas with Argentina.
Since the Falklands War, when transport ties were severed between the Falkland Islands and continental Argentina, Punta Arenas has become a major outside link to the archipelago.
Some cruise ships to Antarctica depart from Punta Arenas's port, which also serves as a hub for many cruise lines that travel along the channels and fjords of the region. The city is served by Presidente Carlos Ib��ez del Campo International Airport, which has flights operated by LAN Airlines, Aerov�as DAP and Sky Airline; most flights are to other destinations within Chile, although Ushuaia (Argentina) and Mount Pleasant (Falkland Islands) are also served
