Public Hearing on the First Concession of the Paraguay River Waterway to Be Held on February 6

The Brazilian National Waterway Transportation Agency (ANTAQ) will hold a public hearing on February 6 to refine the documents and proposed model for the concession of the Paraguay River Waterway.

This will be Brazil’s first waterway concession and mark a sector milestone. The bidding process promises increased logistical efficiency and aims to reduce greenhouse gas emissions.

The public session will be streamed live on ANTAQ’s YouTube channel starting at 9:00 AM. Those interested in speaking during the hearing must register via WhatsApp at (61) 2029-6940 from 9:00 AM to 3:00 PM on February 5, 2025.

Contributions

This link provides access to the complete documentation, including legal drafts for Public Hearing No. 18/2024.

Contributions may be submitted until 11:59 PM on February 23, 2025, exclusively via the electronic form available on ANTAQ’s website. Submissions through other means will not be accepted.

Digital images such as maps, diagrams, and photos can be attached via email at [email protected]. Contributors must identify themselves, and submissions must meet the deadline specified in this notice. However, sending attachments via email does not exempt contributors from submitting their written input through the electronic form.

For those without the necessary resources to use the electronic form, contributions can be made via computers at ANTAQ’s General Secretariat (SGE) in Brasília/DF or its Regional Units, whose addresses are listed on ANTAQ’s website.

About the Concession

The Paraguay River Waterway spans 600 km between Corumbá (MS) and the mouth of the Apa River in Porto Murtinho (MS). It includes the Tamengo Channel within the municipality of Corumbá.

During the first five years of the concession, planned improvements include dredging, rock removal, beaconing and signaling, construction of an industrial warehouse, acquisition of a dredger, hydrological monitoring, hydrographic surveys, upgrades to crossings and convoy disbanding points, and implementation of waterway traffic management systems, such as Vessel Traffic Service (VTS) and River Information Service (RIS), along with other river intelligence services.

These enhancements aim to ensure safe and reliable navigation. The estimated direct investment for the initial years is R$ 63.8 million. The concession contract term is 15 years, with the possibility of extension for an equal period.

Low and Free Tariffs

According to the proposed model, tariffs for cargo movement will only be charged once the concessionaire delivers the services outlined in the contract’s first phase. Passenger transportation and small cargo movements will not incur tariffs.

The pre-auction tariff estimate is up to R$1.27 per ton of cargo. However, since the bidding criterion could be the lowest tariff, this amount may be reduced. Changes to the bidding criteria may also be possible during the public consultation process.

Cargo Movement

After the concession, cargo movement on the Paraguay River is expected to reach between 25 and 30 million tons by 2030, representing a significant increase compared to current levels. Last year, the waterway transported 7.95 million tons of cargo, a 72.57% increase compared to 2022.

In 2023, Brazil’s waterways transported over 157 million tons of cargo, accounting for nearly 10% of all waterway transport during the period. This volume demonstrates significant potential for further development, aligning with the goal of greater national logistical efficiency through private investment.

Navigability

With the concession, the waterway will maintain a draft of 3 meters during high-water periods and 2 meters during dry seasons, ensuring vessel navigability year-round, or at least most of it.

Considering the extreme droughts in recent years, the contract also includes provisions to distribute risks adequately by creating a Contractual Hydrological Reference Zone. This zone involves a statistical assessment of the Paraguay River’s hydrological behavior.

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