Paraguay River: Brazil Launches First Public Consultation for Waterway Concession

The first public consultation for the Paraguay River Waterway concession project was launched on Thursday (19) at the Ministry of Ports and Airports (MPor), marking a historic initiative in Brazil. This effort aims to promote transparency and public participation in shaping the project, considered a milestone for the nation’s waterway infrastructure.

The period for submitting contributions, subsidies, and suggestions regarding the project’s design and concession documents will run from December 26, 2024, to February 23, 2025.

“This is a milestone in the history of Brazilian waterway infrastructure. We are talking about the largest infrastructure project for regional development in South America, the Paraguay River Waterway. It combines sustainable development with logistical efficiency, offering significant benefits to the region’s production chain and the growth of navigation companies,” stated Eduardo Nery, Director-General of ANTAQ.

ANTAQ delivered a technical presentation on the project during the event. The session, led by Director Albert Vasconcelos, the project’s rapporteur, and Bruno Pinheiro, Superintendent of Studies and Waterways, outlined the initiative’s strategic and logistical aspects. The project aims to boost waterway transport and integrate Brazil’s agribusiness into the national infrastructure framework.

About the Concession

The Paraguay River Waterway covers the stretch between Corumbá (MS) and the mouth of the Apa River in Porto Murtinho (MS), including the Tamengo Channel in Corumbá. The total project spans 600 kilometers.

During the first five years of the concession, significant improvements will be implemented, including Dredging, rock removal, marking, and signaling; Construction of an industrial warehouse and acquisition of dredging equipment; Hydrological monitoring and hydrographic surveys; Enhancements to crossings and convoy separation points; Deployment of advanced traffic management systems, such as Vessel Traffic Service (VTS) and River Information Service (RIS); Introduction of river intelligence services.

These upgrades aim to enhance navigation safety and reliability. The direct investment for the initial phase is estimated at R$ 63.8 million. The concession contract spans 15 years, with an option for renewal for an equal period.

Tariffs and Accessibility

According to the project’s model, tariffs for cargo handling will only be charged after the concessionaire delivers the services outlined in the contract’s first phase. Passenger transportation and small cargo services will remain tariff-free.

Pre-auction tariff estimates indicate a maximum rate of R$1.27 per ton of cargo, which may be reduced based on the bidding criteria. Adjustments to the auction criteria may also be considered during the public consultation phase.

Projected Cargo Volume

Post-concession, the Paraguay River cargo transport volume is expected to reach 25–30 million tons annually by 2030, marking a significant increase compared to current figures. Last year, the waterway handled 7.95 million tons, a 72.57% rise from 2022.

In 2023, Brazil’s waterways transported over 157 million tons of cargo, accounting for nearly 10% of the nation’s waterborne transport. With private investment, this segment holds great potential for further development, contributing to improved national logistics efficiency.

Navigability and Risk Management

Following the concession, the waterway will maintain a draft of 3 meters during high water levels and 2 meters during dry periods, ensuring year-round navigability for vessels.

The contract includes risk-sharing measures for the concessionaire to address the challenges posed by extreme droughts in recent years. These measures involve the establishment of a Contractual Hydrological Reference Zone, which uses statistical analyses of the Paraguay River’s hydrological behavior to manage risk distribution effectively.

Source: ANTAQ

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