Argentina formalizes Hidrovía Control Council for new concession

Argentina's government has established the Control Council for the Trunk Navigable Waterway (VNT), a significant step to monitor and guide the management of the country's primary foreign trade route. This new body will oversee the technical aspects, evaluation, and advisory functions for the waterway's operation, which has been entrusted to Vías Navegables Argentina S.A.

The consortium Vías Navegables Argentina S.A., formed by Belgium's Jan De Nul and Argentina's Servimagnus, won the bid for maintenance, dredging, and buoyage works. The concession contract was signed on July 7, marking a new phase for the VNT after years of complex negotiations. A key change will be a reduction in the tariff from US$4.30 to US$3.80 per net registered ton (TRN) or transportable ton in September. Following environmental studies, deepening works on the channel will commence.

This initiative is designed to support the new private management model, which operates at the companies' own risk without state guarantees. The Hidrovía is crucial, handling over 80% of Argentina's foreign trade, including major agricultural exports like grains and agro-industrial byproducts. The government anticipates that the revised management structure will bring greater predictability to channel deepening projects, facilitate the adoption of new technologies, and ultimately lower logistics costs for the nation's industries.

The Control Council's structure includes a plenary session held every two months and specialized commissions focusing on traffic, economic regimes, environmental management, navigation safety, technology, infrastructure, maintenance, and regional logistics. While the commissions' conclusions will not be binding, they will inform the plenary discussions on the waterway's functioning and development. Meeting minutes, approved recommendations, and resolutions will be publicly accessible via the council's official website, with exceptions for commercially sensitive or national security information.