Feb 16 • 03:14 UTC 🇦🇷 Argentina La Nacion (ES)

The cost of logistics: the Hidrovía and a critical bidding process for our future

Argentina's commodity producers are grappling with the international pricing of their products and the logistical challenges that diminish their competitiveness.

In Argentina, commodity producers, particularly those dealing with cereals and oilseeds, face an unavoidable reality where they are at the mercy of international prices. The global market dictates their earnings, which are further diminished by domestic production costs, heavy taxation — notably export duties — and logistical expenses. Issues such as poor road conditions, outdated trucks, a failing railway system, port transshipment inefficiencies, and high maritime freight costs directly impact their income and competitiveness.

Amid these challenges, the Hidrovía emerges as a critical infrastructure project. This fully fluvial system is essential for efficient transport routes but faces ongoing challenges from natural sediment deposits contributed by the Bermejo and Paraguay rivers. These sediment build-ups pose obstacles for smooth navigation and transport, thereby complicating the logistics further and increasing costs for producers. Addressing these challenges through effective management and investment could significantly enhance the efficiency of this vital transportation corridor, which is crucial for the agricultural sector's sustainability.

The current bidding process regarding the management and maintenance of the Hidrovía is of paramount importance for the future of Argentina's agricultural exports. Stakeholders are emphasizing the need for a reliable and well-maintained waterway to optimize logistics. Thus, the outcome of this bidding is not merely about transport; it is fundamental to the competitiveness of the Argentine agricultural economy in the face of global market pressures. The producers stress that without improvements in logistical infrastructure, their capacity to compete in international markets will continue to be hampered by rising costs and inefficiencies in the supply chain.

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