Navigating Troubled Waters: A New Understanding Between Paraguay and Argentina
In a bid to tackle the issue surrounding the collection of tolls on the Paraguay-Paraná Waterway, the governments of Paraguay and Argentina have come to a mutual understanding. This agreement marks a significant step in addressing the challenges faced by shippers and shipowners utilizing this vital waterway.
Key Points of the Understanding:
- Provisional Toll Agreement:
- Argentina’s General Ports Administration and The Center of River and Maritime Shipowners of Paraguay have agreed on a provisional toll of US$ 1.20 per tonne. This rate will be in effect for six months, starting from September 2024 until February 28, 2025.
- Reimbursement Mechanism:
- A compensation and credit mechanism has been introduced for shipowners who have already paid the previous rate of US$ 1.47 per ton. This adjustment seeks to alleviate the financial burden faced by these stakeholders.
- Retroactive Adjustment:
- To rectify past discrepancies, the toll rate will be adjusted to 0.80 US dollars per Net Register Ton (TRN) retroactively from February 2023. This adjustment reflects a commitment to fairness and transparency in toll collection.
In an official statement, Asunción’s Foreign Ministry highlighted that the understanding was reached through a comprehensive analysis and information exchange on various factors. These factors include the level of investment in the waterway section, the review of service requirements, and the frequency of vessel traffic, among others.
Challenges Ahead:
Despite this positive development, Paraguay’s river transport system faces significant challenges due to unprecedented low water levels. The lack of rainfall and unfavorable weather forecasts pose a threat to navigation along these shallow waterways. Ship operators will need to adjust their cargo capacity to navigate through these difficult conditions.
President Julio Vera of Paraguay’s National Administration of Navigation and Ports expressed concern over the situation, emphasizing the critical need for rainfall. The current water levels have surpassed historical lows, calling for immediate attention to avoid further economic repercussions. The lack of rain projections further exacerbates the predicament, posing a threat to the country’s economy in the upcoming months.
In conclusion, the recent understanding between Paraguay and Argentina represents a positive step towards addressing challenges in toll collection and ensuring fair practices along the waterway. However, the looming threat of low water levels underscores the need for proactive measures to safeguard the region’s vital transportation infrastructure. Collaboration and strategic planning will be key in overcoming these challenges and ensuring the continued viability of the waterway for trade and commerce.
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