The Sociedad Rural Argentina (SRA), a civil association of the agricultural sector, pointed to the challenges that remain pending to strengthen the activity of the Main Navigable Waterway. The organization’s statement was framed within the award, by the country’s Government, of the new concession of the water route to the union of companies formed by Jan De Nul and Servimagnus for a period of 25 years.
According to the SRA, “the concession contemplates the gradual deepening of the channel from the current 34 feet to 38 feet, with the possibility of later advancing towards 40 navigable feet, along with dredging works, maintenance and modernization of the signaling and buoying system.”
“These improvements will allow increasing the load per ship, improving navigation safety, reducing operating times and optimizing export logistics. According to private estimates, the greater depth would allow reducing between 189 and 230 annual vessels to transport the same exported volume and generate logistical savings of between USD 375 and USD 456 million per year,” stated the Society.
“The award constitutes a positive signal after more than a decade without structural improvements in navigation infrastructure, a period during which the system’s operability was maintained, but without advancing the works demanded by the export sectors,” affirmed the SRA.
“Nevertheless, the deepening of the Waterway represents only one part of the pending logistical agenda. Various specialists and user entities highlight the need to modernize the cabotage regime, strengthen regional ports and promote greater integration between truck, rail and waterway transport. Also pending are regulatory and tax adjustments and the implementation of the governance and control mechanisms foreseen for the new concession,” stated the organization.
“Finally, the award represents a significant advance for Argentine export competitiveness. The challenge going forward will be to carry out the committed works and complement them with a comprehensive logistical agenda that allows reducing transaction costs and fully harnessing the potential of the Argentine river system,” emphasized the Sociedad Rural Argentina.
