Argentina has loosened safety regulations for shipments on the Parana-Paraguay waterway, potentially increasing cargo capacity by 7%. This change aims to improve shipping efficiency for the country’s agricultural exports, with over 80% relying on the river. Recent bidding issues have prompted government scrutiny and a commitment to fair competition in future contracts.
Argentina has eased safety regulations for shipments on a vital grains transport river, potentially increasing cargo capacity by 7%, according to Security Minister Patricia Bullrich. The revised rules will allow vessels on the Parana-Paraguay waterway to transport heavier loads, enhancing efficiency and reducing costs while maintaining safety standards.
As the leading exporter of soybean oil and flour, and a significant exporter of corn and wheat, over 80% of Argentina’s agricultural exports are transported via this river. Recently, the government has intensified its focus on improving the waterway, following a failed auction process for maintenance contracts due to a lack of competition.
Minister Bullrich stressed that with “clear rules, predictability and firm decisions,” the government aims to create a more competitive logistics environment on the waterway. The Rosario Grains Exchange described the regulatory changes as a significant step towards increasing operational efficiency for agricultural shipments.
“This decision by the prefecture and the security ministry is very welcome,” stated Gustavo Idigoras, head of Argentina’s CIARA-CEC grains export chamber, highlighting the tangible benefits it would bring to loading and navigation. He also emphasized the urgency of progressing with the waterway’s auction process to maximize these improvements.
A new round of tenders for maintenance contracts will follow the conclusion of the investigation into the previous auction, which faced allegations of sabotage. DEME Group was the sole bidder in the initial tender, with concerns arising regarding the lack of competition and possible misconduct aimed at discouraging other bidders.
The relaxation of regulations along the Parana-Paraguay waterway could significantly enhance cargo transport efficiency, crucial for Argentina’s agricultural exports. With over 80% of its exports relying on this channel, the government’s initiative aims to bolster competitiveness while ensuring safety. Investigations into previous bidding processes will shape future contracts, as authorities work to ensure fair competition and improved maintenance.
Original Source: www.tradingview.com
