By Maximilian Heath
BUENOS AIRES, June 29 (Reuters) – Argentina will provide a one-year contract to take care of the dredging of the Parana River, the nation’s key grains export superhighway, whereas the federal government prepares an extended concession, Transport Minister Alexis Guerrera stated on Tuesday.
The nation’s most essential logistics system has been managed for 25 years by Belgian dredger Jan de Nul. The corporate is dredging the river beneath a 90-day contract it was awarded in April, and is predicted to bid for the upcoming concessions.
Argentina is the world’s No. three corn exporter and high provider of soymeal livestock feed, used to fatten hogs and poultry from Europe to Southeast Asia. About 80% of the nation’s grains exports movement down the Parana from the Pampas farm belt to the delivery lanes of the Atlantic.
There’s a decree awaiting the signature of President Alberto Fernandez that “will permit us to launch a young for 12 months and be headed by the Common Port Administration,” Guerrera instructed radio station El Destape.
The target of the one-year tender is “to offer us sufficient time to organize the lengthy tender,” stated Guerrera. Underneath the one-year concession, it is going to be the state, relatively than the dredging firm itself, that may cost the charges that cargo ships pay to make use of the waterway. Till now the corporate has charged the charge.
The Parana River has made the South American grains powerhouse one of many world’s best meals exporters. Enormous cargo ships could be loaded straight at Rosario and keep away from the inefficient barges and trucking that lavatory down delivery in rival exporters Brazil and america.
The river at Rosario is at the moment dredged to about 34 ft deep. Trade leaders need the subsequent contract to supply for a deeper and wider delivery channel to enhance navigability.
(Reporting by Maximilian Heath and Hugh Bronstein; Enhancing by Stephen Coates)
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