Ports and Terminals

TCP reports increase in throughput of Paraguayan cargo

Dec, 06, 2024 Posted by Denise Vilera

Week 202446

Paraguay plays a strategic role in international trade, exporting products like beef, wood, and peanuts while importing essential goods for its economy, such as machinery, fertilizers, agricultural chemicals, automotive parts, tires, consumer goods, and textiles. A significant portion of these goods passes through Brazil, which serves as a gateway to global markets for the neighboring country.

In this context, TCP, the Paranaguá Container Terminal company, has emerged as an essential partner, offering agile and reliable logistical solutions. Between January and October 2024, the terminal recorded a 129% increase in cargo volumes originating from or destined for Paraguay, compared to the same period last year, reaching 7,673 TEUs.

However, much of Paraguay’s foreign trade (80%) still relies on river transport along the Paraguay-Paraná Waterway, which carries cargo to the Río de la Plata and then to the ports of Montevideo and Buenos Aires. This heavy dependence presents significant challenges for Paraguay’s market, including logistical disruptions during periods of drought and low water levels, typically occurring between winter and spring, and the recent 40.49% toll hike on the waterway imposed by the Argentine government, increasing the rate per registered ton (NRT).

On the other hand, road transport between Paraguay and Paranaguá offers a faster and more predictable alternative, leveraging geographic proximity. “The significant growth in cargo volumes this year highlights how TCP has contributed to making logistics operations more efficient and competitive for Paraguayan companies. Diversifying export routes ensures more opportunities and security and avoids overreliance on a single channel,” said Giovanni Guidolim, TCP’s commercial, logistics, and customer service manager.

Supporting Paraguayan Beef Exports

TCP has also established itself as a strategic partner for Paraguay’s beef sector. Between January and October 2024, the terminal registered an impressive 567% increase in refrigerated cargo (reefer) exports from Paraguay, totaling 3,216 TEUs. Paraguay exports beef to approximately 40 destinations, with major markets including Chile, Taiwan, and Brazil. More recently, the country has expanded into Canada and the United States, primarily exporting lean beef for hamburger production.

To meet the growing demand for refrigerated cargo, TCP boasts the largest container yard in South America, equipped with 5,268 plugs, cementing its leadership in the meat and frozen goods sector. “This infrastructure was specifically developed to support the most prominent market within the terminal’s operations. Ensuring quality and safety in exports is crucial, especially given the high sensitivity and stringent requirements of international markets,” added Guidolim.

Services Boosting Paraguayan Exports

TCP offers specialized services to meet the needs of Paraguayan companies in various sectors, particularly agribusiness, which benefits from transit times up to 25 days faster on imports compared to flows through ports in the Río de la Plata. In recent years, increased productivity in Paraguayan agriculture has driven demand for machinery, fertilizers, and agricultural chemicals, particularly for key crops like soybeans, corn, and rice.

Industries such as automotive and textile manufacturing also find great opportunities to import supplies from global markets, relying on the services of the Depósito Franco Paraguayo (Paraguayan Free Warehouse) located in Paranaguá; this is one of the few facilities in Brazil that facilitates the authorization and transportation of imported goods to Paraguay and streamlines the trade flow between the two countries.

The Paranaguá Container Terminal also stands out as Brazil’s largest hub for maritime services and one of the largest in South America. This advantage offers more commercial opportunities and security for businesses seeking new markets. Carolina Merkle Brown, TCP’s commercial manager for shipping lines, explains, “The terminal features 25 regular weekly calls in its portfolio. With a robust frequency of ship arrivals, customers operating through Paranaguá have access to a broader range of routes and stronger negotiating power to expand their product reach worldwide.”

Strengthening Paraguayan Competitiveness

TCP’s infrastructure and services significantly enhance the global competitiveness of Paraguayan businesses. “With comprehensive infrastructure and tailored solutions for Paraguayan clients, TCP offers specialized services at competitive rates, reduces lead times, and optimizes operations. This approach drives Paraguay’s position on the global stage. This combination of factors makes us an indispensable partner for the country’s growth and logistical efficiency,” concluded Giovanni Guidolim.

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