Argentina’s grain exporters press government to finalize waterway concession

Argentina’s oilseed industry chamber and grain exporters’ center, CIARA-CEC, have formally asked Economy Minister Luis Caputo to speed up the final award of the Hidrovía concession, the country’s main export corridor.

The request was made in a letter also sent to the National Ports and Navigation Agency, ANPYN, as the concession process reaches the final stage before award.

For Argentina’s agro-export complex, the decision is urgent. The Trunk Waterway, known as the VNT, is the country’s most important logistics infrastructure for export competitiveness. About 80% of Argentina’s agro-industrial shipments move through the system, making it critical for foreign currency inflows and the broader economy.

In the letter, signed by CIARA-CEC President Gustavo Idígoras, the entities asked the government to take the necessary steps to conclude the bidding process as a “priority and definitive” matter. The concession will determine who will be responsible for dredging, maintenance and buoyage on the waterway for the next 25 years.

The private sector argues that the current transitional arrangement creates regulatory uncertainty, makes investment planning more difficult and could affect the efficiency of infrastructure considered strategic for Argentine foreign trade and river logistics across the Southern Cone.

Exporters also noted that current regulations already call for a definitive concession. They cited Decree 949/2020, which maintained the concession model and ordered the corresponding bidding process, and Decree 556/2021, which established state administration as a temporary solution until the final award.

According to CIARA-CEC, leaving the current arrangement in place indefinitely would go against the spirit of those rules and undermine the predictability required for infrastructure that is critical to economic development.

The request goes beyond the concession award itself. The entities also called for an immediate decision on another issue they consider central to the future contract: the non-application of VAT to dredging and buoyage services provided by the future concessionaire.

According to the business group, the exemption is essential to avoid additional costs that would ripple through the export chain. The argument is that these services are a key input for export operations and were not historically subject to the tax under the previous concession.

CIARA-CEC said existing legislation and administrative precedents allow the government to issue a clarifying rule confirming that tax treatment. The group also argued that the executive branch has sufficient authority to issue a resolution or decree removing any uncertainty over the issue.

The sector’s concern is tied directly to the economic impact that further delays could have. Exporters say a stable concession framework and clear tax rules would help reduce logistics costs, improve international competitiveness and provide greater certainty for investment.

They also warn that a quick resolution would help ensure the operational continuity of a waterway that carries a large share of Argentina’s agro-industrial production, especially soybean, corn, wheat and industrial byproduct shipments.

The debate has gained further relevance as Argentina seeks to increase exports, bring in more U.S. dollars and recover competitiveness against regional players such as Brazil and Paraguay.

For CIARA-CEC, a decision on the Hidrovía is not merely an administrative matter, but a strategic choice for the future of Argentina’s foreign trade. In the view of agro-export companies, finalizing the award and settling the tax issue would help establish a stable regulatory framework aligned with international standards and essential to sustaining export growth.

Source: AgroLatam

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