Argentina is renovating the archaic routes that lead to the largest agricultural export port in the country, but for shipments from one of the world's powers to continue growing, there is still a key chapter missing: deepen and widen one of the most important rivers in the world.
Rosario port region
The port region of Rosario rests on the Paraná, the second longest river in South America after the Amazon, through which 80% of Argentina's agricultural products are exported, a leading global food supplier.
In an effort to improve export infrastructure, the government announced last month offers from companies to build and improve routes through public-private partnerships (PPP), a plan that includes key stretches for transporting grains to Rosario.
However, the current 34 feet of depth of the Paraná River between Rosario and the sea - dredged in the 1990s - makes access difficult for modern models of cargo ships and causes problems for ship traffic, which has grown along with the expansion of agricultural production in the country.
"The work on the Paraná River is very important, as important as the arrival of grains to the ports."Pablo Jukic, secretary of transportation for the province of Santa Fe, where the city of Rosario is located, told Reuters.
That is why Jukic pointed out that, together with the national government, the province is carrying out studies to make modifications to the 450 kilometers of river that separate the north of Rosario from the ocean, which could begin when the current concession for the maintenance of the Paraná waterway expires in 2021 and a new contract is put out to tender.
On pending dredging
After taking office at the end of 2015, President Mauricio Macri eliminated taxes and limits on grain shipments, with the aim of increase your salesHowever, analysts argue that Argentina's old transport matrix is the structural obstacle that limits the sector.
According to the Rosario Stock Exchange (BCR), increasing the depth of the Paraná to 38 feet would reduce by about 8 percent the number of ships needed - to about 1.750 vessels per year - to move Argentine agricultural and agro-industrial exports.
Last year, 63 million tons of grains and their derived oils and flours were shipped in the Rosario region, according to official data.
"The depth would allow freight to be reduced and vessels to be used more. Various other works must also be carried out to accompany this deepening, such as widening of channels, searching for new waiting and manoeuvring areas.", explained Alfredo Sesé, technical secretary of the BCR's Transport and Infrastructure Commission.
Various sources in the agricultural export sector also pointed out - on condition of anonymity - the need to renew the Paraná waterway to speed up sales in the country, which is the world's leading exporter of soybean oil and meal, and the third largest exporter of unprocessed soybean.
A relevant point highlighted by Sesé is that the financing of the project would impact the Paraná toll rates paid by exporting companies, which is expected to generate lengthy negotiations.
"Since the 90s, several new port terminals have appeared, and grain shipments have increased. We need to adapt and expand," said Sesé.
Source: Reuters
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
