Argentina has eased safety regulations for shipments along the crucial Parana-Paraguay waterway, a decision expected to increase cargo capacity by up to 7%, according to Security Minister Patricia Bullrich.
Key Highlights:
Regulatory Changes:
The new regulations allow ships to carry more cargo, enhancing efficiency and reducing costs for shipping companies without compromising safety.
Bullrich stated, “With clear rules, predictability, and firm decisions, we guarantee a more competitive waterway.”
Impact on Agricultural Exports:
Argentina is a leading global exporter, being the top exporter of soybean oil and flour, the third-largest exporter of corn, and a significant supplier of wheat.
Over 80% of the nation’s agricultural exports are transported via the Parana River, making this change crucial for the economy.
Industry Response:
The Rosario Grains Exchange hailed the regulatory adjustment as “important progress” toward enhancing export efficiency.
The nation’s ports chamber and grains export chamber have not yet commented on the changes.
Focus on Waterway Management:
The government has shifted its attention to the waterway following a scandal that led to the cancellation of an auction for maintenance contracts on the Parana River.
A new tender will be announced after an investigation into potential sabotage of the auction concludes.
Auction Controversy:
Only one company, DEME Group, participated in the initial bidding process, raising questions about the lack of competition.
DEME expressed uncertainty regarding the absence of other bidders, while the government is investigating possible “pressure” tactics employed by DEME against competitors.
There are allegations that the tender process favored Jan de Nul, the current concession holder.