Breaking: Historic Agreement Reached on Waterway Toll Rates Between Paraguay and Argentina!

Navigating the Troubled Waters: Paraguay and Argentina Strike Deal on Waterway Tolls

The governments of Paraguay and Argentina have finally come to a mutual understanding regarding toll collection for the use of the Paraguay-Paraná Waterway, bringing an end to a prolonged dispute. This agreement marks a significant milestone in fostering cooperation between the two nations.

Key Points of the Understanding:

1. Toll Reduction: Argentina’s General Ports Administration (AGP) and The Center of River and Maritime Shipowners of Paraguay (Cafym) have agreed on a reduced toll rate of US$ 1.20 per tonne, effective for six months starting in September 2024. This reduction aims to alleviate the financial burden on shipowners who have been paying the previous rate of US$ 1.47 per ton.

2. Compensation Mechanism: A compensation and credit mechanism has been established to reimburse shipowners who had paid excess fees since February of the previous year. This move demonstrates a commitment to fairness and transparency in toll collection practices.

3. Retroactive Adjustment: The toll rate will be adjusted retroactively to 0.80 US dollars per Net Register Ton (TRN) from February 2023 onwards. This retrospective adjustment highlights a proactive approach to addressing past discrepancies and ensuring equitable treatment for all stakeholders.

This resolution reflects a collaborative effort to address the evolving needs and challenges of the Paraguay-Paraná Waterway. By engaging in a comprehensive analysis of investment levels, service requirements, and traffic patterns, both parties have demonstrated a commitment to finding sustainable solutions for the future.

However, despite this promising development, Paraguay’s river transport system still faces significant challenges due to unprecedented low water levels and unfavorable weather conditions. With no immediate prospects of rainfall, barges will need to adjust their cargo capacity to navigate through shallow waters effectively.

Julio Vera, President of Paraguay’s National Administration of Navigation and Ports (ANNP), expressed concerns over the dire situation, emphasizing the urgent need for proactive measures to mitigate the impact of the water scarcity. The looming threat of prolonged drought could have severe repercussions on the country’s economy in the months ahead.

In conclusion, the recent agreement between Paraguay and Argentina marks a positive step towards resolving longstanding issues and fostering a spirit of cooperation in the region. By prioritizing dialogue and collaboration, both nations have shown a willingness to address complex challenges and work towards a more sustainable future for the Paraguay-Paraná Waterway. It is crucial to maintain this momentum and continue exploring innovative solutions to ensure the long-term viability of this vital transportation artery.