Rio de la Plata basin map
Rio de la Plata basin mapKmusser/Wikimedia

Argentina relaxes transit regulations along key grains transport river

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Argentina loosened safety regulations on shipments traveling on a river that is a key grains transport corridor, a move which could boost cargo moved through the waterway by up to seven per cent, the nation's security minister said on Monday.

Ships traveling along the Parana-Paraguay waterway will now be able to carry more cargo, Security Minister Patricia Bullrich said on social media, adding it would make firms more efficient and reduce costs without affecting safety.

Argentina is the world's top exporter of soybean oil and flour, the third-largest exporter of corn and a top wheat supplier. More than 80 per cent of the nation's agricultural exports are shipped along the river.

The government has renewed its focus on the waterway in recent weeks after an auction process for maintenance contracts of the Parana River was embroiled in scandal and scrapped, after only one firm entered the bidding.

"With clear rules, predictability and firm decisions, we guarantee a more competitive waterway," Bullrich said.

The Rosario Grains Exchange called the tweak in regulations "important progress" toward improving efficiency for agricultural exports.

"This decision by the prefecture and the security ministry is very welcome," said Gustavo Idigoras, the head of Argentina's CIARA-CEC grains export chamber, adding the measure would have "concrete impacts" on loading and navigation.

"It is now even more of a priority to move forward with the waterway auction process in order to take advantage of this change," he added.

The nation's ports chamber did not immediately respond to Reuters' request for comment.

A fresh tender for the maintenance contract will be launched after a probe into the auction's possible sabotage is wrapped up.

Belgian dredger DEME Group had been the only firm to bid in the initial round. DEME said it did not know why others did not compete, though the government is looking into potential "pressure" by DEME onto its competitors.

DEME, however, said that the tender had been biased in favor of Jan de Nul, the current concession holder.

(Reporting by Maximilian Heath; Writing by Kylie Madry; Editing by Natalia Siniawski, Lincoln Feast and Christian Schmollinger)

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