Argentina toll fee diverts demand to Port of Paranagua

The Argentine waterway toll levied on vessels crossing Santa Fe-Confluencia and Paso Queso on the Paraguay-Paraná Waterway became effective in January 2023. Argentina’s Ministry of Transport approved a charge of US$1.47 per ton transported on the 1,180-kilometer stretch of the waterway in Resolution No. 1023/2022. The fee is supposed to help fund dredging and signaling projects.

The measure is not seen with good eyes by Paraguayan importers and exporters. The Federation of Production, Industry, and Commerce of Paraguay (Feprinco) filed a review request. While the measure remains in force, importers are looking for alternative options, mainly the port of Paranaguá, which has gained room in the Paraguayan market.

The commercial coordinator for Paraguay at TCP (Paranaguá Container Terminal), André Frigotto, explains that “the company is the main Brazilian alternative for foreign trade in the neighboring country. One of the advantages of the overland route is the travel time: 25 to 30 days faster than by barge. Another advantage of TCP is the existence of a special Paraguayan bonded storage, a mandatory requirement for the international transport of imported cargo bound for the country.”

Another advantage for importers who choose to use the Port of Paranaguá is land transport. The construction of the International Integration Bridge, the second in Paraná to connect the two countries, will be one more aspect to stimulate the regional market. According to Frigotto, the work will revolutionize Brazil-Paraguay trade, allowing for a more agile and efficient transit of goods.

According to the State News Agency of the Government of Paraná, the structure of the Integration Bridge is completed. What is left to do is conclude the final touches, which are in progress, such as installing internal and external guardrails. According to the Government of the State of Paraná’s Secretariat for Infrastructure and Logistics, the perimeter work is expected to be completed in December 2023; the deadline will be revised in the coming months based on the progress of the services.

Feprinco statement

The Federation of Production, Industry, and Commerce of Paraguay asked the national government “to adopt the necessary measures for the immediate rectification of this situation. This imposition represents a violation of bilateral rules between Argentina and Paraguay, affecting the entire logistical coast of our country.” So far, the waterway toll remains unchanged.

Source: Mirian Gasparin

To read the original reporting, please access: https://miriangasparin.com.br/2023/02/com-taxacao-argentina-em-hidrovias-aumenta-procura-pelo-porto-de-paranagua/

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