Navigating the waters of change: Argentina raises Paraná-Paraguay Waterway tolls
In a bold move by the Argentine administration of President Javier Milei, a 63% increase in tolls for barges sailing through the Paraguay-Paraná Waterway has been decreed, effective this month. This adjustment has set a new price of US$ 4.98 per Net Register Ton (NRT), up from the previous US$ 3.06, with projections to reach US$ 6.04 per TRN by 2027.
The decision has stirred controversy, particularly among Paraguayan shipowners who have raised objections. Despite negotiations with the Santiago Peña administration reaching an impasse, the Argentine government proceeded with the toll hike. Paraguayan shipowners have adamantly pushed for the toll to be eliminated entirely, citing the lack of navigational services to warrant the charge.
The Argentine government justified the new fare by considering the rise in the Consumer Price Index over the last 22 years. However, the Paraguayan shipowners’ guild fears that this adjustment will compound the volatile costs of imports, exacerbated by freight price fluctuations due to droughts, in addition to tariffs imposed by Asunción’s Ministry of Industry and Commerce and the National Directorate of Tax Revenue (DNIT).
Meanwhile, the Paraguayan Government has recently inked an agreement with Transbarge Navegación SA to commence dredging works at 13 identified “critical points” to enhance the passage of Bolivian and Brazilian iron convoys. This initiative, expected to span eight months, aims to triple the capacity of the waterway, from 15 million to 40 million tons in the coming years. Industry Minister Javier Giménez highlighted that this expansion will necessitate the production of approximately 3,000,000 barges to meet market demands and will have a significant regional impact.
Offering a glimmer of hope amidst the contentious toll hike, the dredging project signifies a collaborative effort to bolster the efficiency and capacity of the Paraguay-Paraná Waterway, paving the way for increased trade and economic growth in the region. As countries navigate these turbulent waters, strategic investments and partnerships are essential to ensure the smooth sailing of commerce and prosperity for all stakeholders involved.
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