Paraná articulates expanding Paraguay’s foreign trade through the port of Paranaguá

The state of Paraná and private actors such as the Container Terminal of Paranaguá (TCP) are contemplating increasing the participation of the Porto of Paranaguá in Paraguay’s foreign trade. Governor Carlos Massa Ratinho Junior reinforced on Tuesday (29), during a TCP event, that modernization projects underway in the state will allow greater logistical integration with the neighboring country.

Historically used as the main access route for Paraguay’s foreign trade operations, the port lost prominence in 2003 when the state’s ban on transgenic products led the country to develop a waterway system on the Paraguay and Paraná rivers, taking most products to ports in Argentina and Uruguay.

With the implementation of projects such as Nova Ferroeste, the new highway concessions program, the Brazil-Paraguay Integration Bridge, and investments in the Port of Paranguá, the state may become the main gateway from Paraguay to the ocean once again.

“We are willing to build projects collaboratively with Paraguay to serve the country’s logistical needs,” said the governor. “Paraná made a serious ideological mistake in the past, which harmed both locations. We are on a mission to make it up and rescue this partnership, which was very important for years. We are fully capable of expanding this integration even further,” says Ratinho Junior.

“We’ve had a strong partnership with the Port of Paranaguá, dating back to the 1980s. Unfortunately, political decisions forced Paraguayan cargo operators to seek alternative routes. We’d see more operations run through the Port of Paranaguá, saving us time and money,” opined Juan Carlos Munhoz, general director of Paraguay’s National Administration of Navigation and Ports.

According to Munhoz, Paraguay handled 165,000 TEUs last year. The participation of the Port of Paranaguá in this sum increased compared to the year before. “It is critical to strengthen regional integration and investigate Paranaguá’s logistical advantages as it represents a market with significant potential. Paraguay is interested in this route because of the lower logistical costs it represents,” he stated.

TCP’s Commercial and Institutional Director, Thomas Lima, explained that the company focused its efforts on regaining the Paraguayan market since using the Port of Paranaguá as an outflow path reduces transit time for Paraguayan products 25 days. Furthermore, it is one of the few ports in Brazil with a Paraguayan Bonded Warehouse, which is necessary for bringing imported cargo into the country.

“Our logistics axis could be used much more than it is now, resulting in increased competitiveness for Paraguayan businesses as well as benefits for Paraná,” said Lima. “That is why we want to show Paraguayan authorities that competition management is a necessity and so are improving the rates in Paranaguá to increase cargo handling, which is already much faster than other countries.”

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