MercoPress. South Atlantic News Agency

Paraguay and Argentina reach understanding on Waterway tolls

A mechanism was also established for the reimbursements of fees paid in excess since February last year, it was explained

The governments of Paraguay and Argentina have reached an understanding regarding the collection of tolls on the latter's part for the use of the Paraguay-Paraná Waterway, it was announced.

Argentina's General Ports Administration (AGP) and The Center of River and Maritime Shipowners of Paraguay (Centro de Armadores Fluviales y Marítimos del Paraguay - Cafym) agreed on a provisional toll of US$ 1.20 per tonne to be applied for six months starting in September 2024 until February 28, 2025. In addition, a compensation and credit mechanism was established for shipowners having paid the previous rate of US$ 1.47 per ton.

”The understanding consists of the application by the General Administration of Ports of Argentina of a bonus and compensation that adjusts the toll rate to 0.80 US dollars per Net Register Ton (TRN) to be executed retroactively from February 2023, when the measure became effective, until August 2024,″ a press release from Asunción's Foreign Ministry further explained.

“The understanding was reached based on a thorough analysis and exchange of information regarding the evolution of the level of investment in the section, the review of the scope of services required and provided, [and] the frequency of traffic of registered vessels, among other components reviewed,” the document went on.

Despite this solution, Paraguay's river transport system faces serious setbacks given the unprecedented low water levels and the weather forecasts heralding no rain shortly, due to which barges will need to adjust their cargo capacity if they are to keep sailing through these shallow courses.

Paraguay's National Administration of Navigation and Ports (ANNP) President Julio Vera said the Paraguay River had reached all-time lows. “We have exceeded historical limits, we have to be aware that the issue is worrisome. There are no rains or rain predictions,” he said. The lack of rainfall and the continuation of this trend could further aggravate the situation in the coming months, he also pointed out.

This situation is expected to affect the South American country's economy.