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Luis ZubizarretaDialogue with the President of the Private Commercial Ports Chamber of Commerce Modo Fontevecchiago through online TV, Introduction to Radio (AM 1190) Radio Amadeus (FM 91.1), reflects on what he defines as “enhancement and participation Intergovernmental Commission for the Paraguayan-Paraná Waterway (CIH), composed of Argentina, Bolivia, Brazil, Paraguay and Uruguay.”
“this waterway It is the Paraná River, which originates from the Rio de la Plata and flows northwards, changing its name to the Paraguay River, deep into the heart of South America, in the Brazilian state of Mato Grosso. This is fundamentally important because Goods can be shipped much more economically via this route than by truck or rail.. It’s inland river freight, the section from the north of Mato Grosso to Rosario, and from there, as the river gets deeper, ocean-going vessels come in with cheaper freight rates, connecting us to the world,” he said.
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“70% to 80% of Argentina’s imports and exports pass through this river.“, he pointed out.
How the waterway was created
“In 1993, the then Minister of Economy, Domingo Cavallohe realized Having deeper rivers is crucial. At the time, the natural depth of the river was close to 26 feet, and the task of dredging was the responsibility of the state administration, and since the state had no resources, the dredging was poor, that is, very basic,” he explained.
“That’s why a concessionhiring private companies for a certain period to do the work, deepening the river and marking it, that is, placing buoys on it. With this work, larger ships are able to enter. For its part, the concessionaire must charge tolls to cover the costs of the works and all the works, as if it were a concession route, “he added.
“This plan is very benign because Allows widening of the river and increasing its depth from 26 feet to 34 feetThe current draft is deeper and the width is increased, allowing larger ships to enter, thus reducing the cost of shipping. This brings Argentina closer to the world and closer to its buying and selling destinations, which is very important because We are a country that is far away from both the export destination and the import origin.the logistics costs are high,” he stressed, which is a good thing about the job.
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Wide range of benefits
“With the entry of larger ships, ocean freight rates will decrease. This will make us more Close to the world, we are more competitive“Because our competitors, especially exporting countries, are closer to the main consumption destinations,” he stressed the huge benefits of the system.
Likewise, Zubizarreta delved into his explanation: “The river system gives Argentina a greater advantage because Arrival country production centerIn the following areas Rosario500 km around, Argentina’s largest agricultural and industrial production takes place, and thanks to the river, the output is closer to port This will have huge benefits.”
“On the waterway, they move about 100 tons of goodsA little over 20 million of these come from the north, transported by barges, coming down the rivers from Paraguay, Brazil, Bolivia. Some of these goods are transshipped in Argentine ports, some in Uruguayan ports, and the rest are products produced in Argentina and exported through these rivers. In addition, there are all the imports, all the vehicles and containers that are imported and exported, the regional economy, that is, All of this flow enters or leaves an outlet through a waterway.”, he said in a conversation with Modo Fontevrilla.
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Transparent bidding and concessions
“The 93-year concession expired, and then former President Cristina Kirchner After the extension period and the new extension period expires, Management period of Alberto Fernandez. Since then and before, private, all users have requested New Concessions There is a very ambitious goal and work program behind it, which includes deepening the river further so that larger ships can enter. This will generate more freight traffic and gain competitiveness as a country, Will benefit producers by encouraging them to produce at higher levels at more favourable prices”, he pointed out.
“This way, more wealth can grow and circulate in the country, which is very important, and this is why New transparent bidding, with business people bearing the risk, without state fundingthe state does not need to invest a penny. This will allow you to save on shipping costs. According to a study conducted by a private entity, after an environmental impact study was carried out, it was proved that in more than 20 years of the concession of the waterway, there have never been any environmental problems or major complaints. “
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“After this environmental impact study, it was determined that the waterway could be widened and deepened to 40 feet, which is expected to save approximately USD 10 per ton of transportationtransportation costs are significantly reduced and benefits are brought to producers,” he details the huge benefits.
“since The current government takes overWe held some meetings to explain how important it is for the competitiveness of the country to have a waterway under a concession by a private company that does a good job. It is not in the hands of the state, and when it is in charge, it has no resources and does not function as it should,” he stressed. He added that the deepening must be done as soon as possible, because every year of delay costs a lot of money and a loss of competitiveness. “That is why we believe The tender process must be accelerated. We understand the government is working on this, but it will take time.“ Zubizarreta is closed.
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Main conference hall for delegates Ports, exporters, steel companies and the Rosario Stock ExchangeIn a letter, they asked the deputy minister of national ports and navigable waterways to speed up the tender process. The group entities are exerting pressure due to concerns that the concession of the existing Belgian company of dredgers will be extended. Jan de Noorin an effort to pay off the $80 million debt the state owes for not canceling payments for services already provided.
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Regarding the state debt for the dredging of the navigable channel (VNT) of Jan De Nul, they refused to transfer the debt to Basic unit price Tolls for this service Dredging and beacons, they ask to be managed in the same way as other services, they ask for progress in deepening VNT, No “overlap between debt repayment and short-term deepening”which will reduce the competitiveness of the country’s foreign trade, rejecting that “a possible temporary increase in tolls has become a certainty” and denying that “tolls are not installed and threaten the potential costs of deepening and subsequent maintenance”, and they demanded the generation of bidding competition in a price-forced manner.
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