Paraguay's Foreign Ministry and private sector associations regarding fuel bunkering operations at kilometer 171 of the Paraguay-Paraná waterway started a round of discussions Thursday in Asunción after Argentina's customs authority announced a potential suspension of these operations.
Add your comment!Major business users of the Paraná-Paraguay Waterway (agro-exporters, industrialists, and port operators) have issued a joint statement supporting the Argentine government's bidding process for a private operator of the Trunk Waterway. They urge all stakeholders to channel their proposals, including those related to tariffs and environmental impact, through the established technical dialogue tables to avoid hindering consensus.
The Argentine Government of President Javier Milei Wednesday declared the tender for the Paraná-Paraguay Waterway - which handles 80% of the country's exports and is also vital for Paraguay - concession void and launched an investigation into the only bidders: Dredging Environmental and Marine Engineering (DEME) for allegedly pressuring other potential bidders not to participate. The National Commission for the Defense of Competition will look into possible anti-competitive practices or an illicit association, it was explained.
Argentina's Administrative Investigations Prosecutor’s Office (PIA) has identified “serious irregularities” in the bidding process for the concession of the Paraná-Paraguay waterway, a crucial trade corridor for the region. The waterway is essential for exporting agricultural products from Argentina, Brazil, Bolivia, Paraguay, and Uruguay to the Atlantic.
The Paraguay-Paraná Waterway channeling myriads of tons of cargo every year is one of the leading passages of cocaine shipments bound for Hamburg and Antwerp, among other destinations, the Washington Post reported. It runs for more than 3,300 kilometers, connecting at least 150 ports in five countries. It is arguably the most important river trade route on the continent.
With the Parana crucial waterway again beginning to suffer the consequences of lack of a sufficient water level, making the loading of cereals and oil seeds at the main Argentine exporting port of Rosario, it is estimated that in the remaining months of the year, Bahía Blanca directly on the Atlantic will be receiving probably half a million tons of additional grains to dispatch.
Trade sailing through the Paraná Waterway collapsed for 12 hours Saturday between San Nicolás and Ramallo when the Croatian-flagged bulk carrier AP Revelin ran aground, thus hindering traffic both ways as low water levels keep affecting business. In this scenario, several barges were advised not to set sail.
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.
The Argentine administration of President Javier Milei decreed a 63% hike in the tolls collected from barges sailing through the Paraguay-Paraná Waterway effective this month. The adjustment set a new price of US$ 4.98 (from the previous US$ 3.06) per Net Register Ton (NRT). The figure is projected to reach US$ 6.04 per TRN in 2027.
Water levels below average at the Paraná-Paraguay river waterway have traders concerned over the future of their business. However, there seems to be consensus on the need to develop a master plan to tackle the grim situation stemming from discouraging precipitation forecasts despite abundant rainfall in recent weeks.