Paraguayan cargo movement grows tenfold at Paranaguá Container Terminal
Apr, 26, 2022 Posted by Gabriel MalheirosWeek 202218
Paraguayan cargo movement grew almost ten times at the Container Terminal of Paranaguá (TCP) in 2021 compared to 2020. The terminal saw 600 containers in 2020, while this number rose to 5,500 last year. Most of the containers (91%) were loaded with cargo imported by Paraguay, and only 9% with Paraguayan products destined for export.
Among the products imported by Paraguay via Paranaguá, electronics, tires, and pesticides stand out. The main product that leaves the neighboring country for the foreign market is frozen beef.
“Paraguay has been more interested in our port because of the logistical solutions we provide,” says TCP institutional director Thomas Lima. Paraguayan importers and exporters gain roughly 30 days of cargo handling time by using the port of Paraná, he claims. Moreover, according to TCP’s director, following tenfold growth in 2021, the target for 2022 is to double the movement from the previous year.
The port of Paranaguá and, in particular, its Container Terminal, grew in relevance for Paraguay following the water crisis that occurred in 2021, which lowered river levels and slowed the passage of barges, the principal mode of transport for Paraguayan goods.
Convenience and speed make a difference
Agrotec is one of Paraguay’s leading agricultural input importers. With 33 years of expertise, it began operating through TCP in Paranaguá in 2020 to transport its goods, most of which were imported from China, Israel, and Russia.
“Convenience and speed made us consider the port of Paraguaná,” says Ruben Peña, Agrotec’s foreign trade coordinator. As he pointed out, one cannot waste time in agriculture. “There is a right moment to play defensively; therefore, we must have the product on the market at the appropriate time; we cannot wait,” explains him.
Peña says that, in 2020, Agrotec imported 40 containers. In 2021, the number grew to 120. They arrived in Paraguay from the ports of Montevideo and Paranaguá. For 2022, we have already contracted 300 containers, of which 200 will come via TCP, from Paranaguá.”
Paraná hopes to equalize rates with Argentina and Uruguay
“Paraguay has four entries to the international market that are accessible by sea: Santos, Paranaguá, Montevideo, and Buenos Aires,” says the TCP’s director. He claims that the port of Paraná has been highly sought after for its operational agility but that the port’s competitiveness in comparison to Argentina and Uruguay’s ports still has to be improved.
“We have an extra cost of $300 for each container that enters the nation compared to goods arriving in Paraguay from Argentina and Uruguay due to the import tax from Paraguay,” explained TCP’s director. He refers to the National Administration of Navigation and Ports (ANNP) rate, which varies for each country. “We are expanding despite this disadvantage, but we are working to improve our position to be a little more competitive,” adds Thomas Lima.
Together with terminal users, the TCP board met with Governor Carlos Massa Ratinho Junior (PSD) at the end of March, requesting intervention with the Paraguayan government to equalize the charge.
The government of Paraná stated in a note that it “has been working with the government of Paraguay to ensure that fees/tariffs levied to exporting enterprises in Paraguay, both those bound for Brazil and those going for Uruguay/Argentina, are equalized. However, as the process is still under negotiation, the details are reserved for the involved parties,” he adds.
Source: Gazeta do Povo
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