A controversial government tender to dredge Argentina's Parana River, a major grains shipping lane, fell apart on Wednesday with only one bidder taking part, leading authorities to launch an investigation into potential sabotage of the process.
The South American country, the world's top exporter of soy oil and meal, and the number three for corn, will hold a new tender after Belgium's DEME Group was the only firm to bid. The process had been mired in allegations of rigging.
The head of the nation's state ports agency said the new process would be carried out after the investigations for possible sabotage conclude.
DEME said in a statement it did not know why other competitors, including the current contractor, did not apply and that it hoped the new process would have the highest international standards of transparency.
"We are going to go out to investigate and chase this down with all our might," said presidential spokesperson Manuel Adorni, adding the government had asked the competition watchdog to investigate, "possible pressure from the sole bidder."
Iñaki Miguel Arreseygor, executive director of the National Ports and Navigation Agency, in a press conference added: "The full weight of the law will be imposed on those involved in this attempt to sabotage the bidding process."
"Once this process is closed, we at the agency will start working on the new specifications immediately," he added.
DEME had last month alleged that the tender was set up in a way to favor the firm that currently dredges the Paraná River, Belgian rival firm Jan de Nul. That company has been involved in dredging the key grains thoroughfare for decades.
In a surprise twist, DEME ended up the sole firm to bid for the contract to dredge the river, part of a route from inland areas of Paraguay, Bolivia and southern Brazil out to sea. Argentina ships 80 per cent of its farm exports along the waterway.
Adorni said the government had previously committed to cancelling to tender if there was only one bidder.
Argentine prosecutors earlier this week had also reported evidence of "serious and evident irregularities" in the wording of the latest tender.
Jan de Nul and Argentina's economy ministry, which led the tender, did not immediately respond to a request for comment.
(Reporting by Maximilian Heath; Writing by Kylie Madry and Sarah Morland; Editing by Daina Beth Solomon and Sandra Maler)