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Waterway Tolls: Private Sector Warns Costs Could Exceed Agricultural Margins
🇵🇾 Paraguay /Economy & Trade

Waterway Tolls: Private Sector Warns Costs Could Exceed Agricultural Margins

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Paraguayan private sector representatives warned the government that the cost of tolls on the Paraguay-Paraná waterway may exceed agricultural profit margins.
  • The president of the Paraguayan Chamber of Oilseed and Cereal Processors (Cappro), Raúl Valdez, stated that the current toll of US$1.30 per net registered ton is unsatisfactory and has not led to service improvements.
  • Approximately 80% of Paraguay's foreign trade uses the waterway, and concerns are rising about its competitiveness and the governance of its management.

Paraguayan private sector leaders have voiced strong concerns to the government regarding the tolls imposed on the Paraguay-Paraná waterway. Raúl Valdez, president of the Paraguayan Chamber of Oilseed and Cereal Processors (Cappro), warned that these costs could potentially surpass the profit margins for agricultural products exported via this crucial trade route.

the cost may exceed the marketing margins of agricultural products exported via that route.

— Raúl ValdezPresident of the Paraguayan Chamber of Oilseed and Cereal Processors (Cappro), warning about the impact of waterway tolls.

During a recent Logistics Council meeting, the private sector presented its grievances, emphasizing the need for stronger governance and a clearer strategy for the toll system in the Argentine section of the waterway. Valdez highlighted that the current toll of US$1.30 per net registered ton, initially considered "transitional," has not been accompanied by the promised technical review to assess its amount and the quality of service provided. He expressed dissatisfaction, noting that despite the recent concession of the Argentine section to the Belgian company Jan De Nul, the toll has not been revised, nor has the service improved.

It is a rate that was agreed upon in such a way as to form a technical committee precisely to address the problems related to the lack or the level of service received for that amount, and effectively our expectation has not been met.

— Raúl ValdezExplaining dissatisfaction with the current toll structure and lack of service improvement.

Valdez explained that the impact of the toll extends beyond the direct payment. In some instances, the cost can be higher than the profit margin for certain agricultural products. This situation is particularly concerning as an estimated 80% of Paraguay's foreign trade relies on the waterway. The private sector's demands focus on improving efficiency and institutional oversight of the waterway's management, aiming to ensure its continued competitiveness as a strategic corridor for Paraguayan commerce.

the amount paid for the toll fee is even higher than in some cases on the margins of agricultural products or of the

— Raúl ValdezDetailing the financial impact of the tolls on agricultural exports.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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