Punta Arenas is a major city in Chile. It is situated along the Strait of Magellan between the Pacific and Atlantic oceans in the far south of the country and has a population of approximately 150,000. The city is the service centre of a large sheep-raising area, it processes and exports hides, wool, and frozen mutton. Its port facilities also handle local lumber and petroleum products. It also services the nearby Tierra del Fuego oil fields and the  naval, air force, and army garrisons situated there. Punta Arenas is also a  free port.