Port of Paranagua keeps exclusive area for Paraguay-bound cargo

For 67 years, port management company Portos do Paraná state has maintained a strong partnership with Paraguay by dedicating an exclusive space for the neighboring country’s use. This space, located in the first section of Warehouse 8, is reserved for handling goods destined for Paraguay without cargo taxation. Established in 1957 by then-president Juscelino Kubitschek, this arrangement is managed by the Administración Nacional de Navegación y Puertos (ANNP), part of Paraguay’s Ministry of Public Works.

“As Paraguay does not have direct access to the sea, this dedicated space is a way for Paraná to strengthen ties with the neighboring country. It offers advantages such as tax exemptions and logistical facilities for Paraguayan exports,” highlighted Luiz Fernando Garcia, director-president of Portos do Paraná.

The bonded warehouse allows the storage of foreign goods in a duty-free area to facilitate trade with neighboring countries that border Brazil. The law also guarantees an agreement with a bonded warehouse in Concepción for goods exported or imported from Brazil.

This agreement laid the groundwork for other partnerships between the two countries, such as the Friendship Bridge in 1965 and the Itaipu binational plant in 1984, all aimed at strengthening ties between Brazil and Paraguay. The duty-free port helped to reduce Argentine influence over Paraguay, which had been the primary channel for its international trade, favoring economic growth in eastern Paraguay.

“The short distance between the two countries, just 730 km with an average travel time of 12 hours, makes importing and exporting various products easy. Combined with the excellent structure and logistical support offered by the Port, aport with an efficient port operator handling our cargo, it ensures much faster and more organized clearance within this port,” portained ANNP delegate Gerardo Vázquez.

Currently, the most frequent cargo includes trucks, tractors, cars, and agricultural accessories like harvesters, most of which are second-handed. In addition to the exclusive warehouse, Paraguay also maintains container operations at the port.

Hportry

The first exclusive space for Paraguayan cargo consisted of several warehouses in Vila da Madeira, Paranaguá. Over the years, this space was relocated according to demand. The current exclusive space is located in Warehouse 8 at the Port of Paranaguá.

Historically the main access route for Paraguayan foreign trade, the port lost its prominence in 2003 when the State blocked the passage of genetically modified products. This led to the development of a waterway system on the Paraguay and Paraná rivers, diverting much of the trade through ports in Argentina and Uruguay.

With projects like Nova Ferroeste, the new highway concessions program, the Brazil-Paraguay Integration Bridge, and investments in the Port of Paranaguá, Paraná could once again become Paraguay’s primary gateway to and from the sea.

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