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Argentina Procurement News Notice - 60857


Procurement News Notice

PNN 60857
Work Detail Added to a state of alert due to a new worrying downspout is the lack of dredging and general maintenance of the navigable waterway, today in the hands of the State. Once again a downspout in the Waterway sets off the alarms. And with them, the concern of the users of the Trunk Waterway (VNT), as it is called in its Argentine section. There are more complications. On the one hand, dredging is scarce and navigation is difficult, say pilots (among other experts), who are key actors in the entry and exit of ships from ports. On the other hand, time is of the essence, because the high season for exporting the thick harvest is approaching. About 4,500 ships move through here a year, 75% of those that operate in the country. The future of the river highway through which 80% of its exports leave the country has not yet been defined, although the Government, with little information available, told LA NACION that “they are working on the best project to launch a tender.” ”, and that there is still no estimated date for the announcement. Alfredo Sesé is Technical Secretary of the Transportation and Infrastructure Commission of the Rosario Stock Exchange, and a reference in issues related to the Waterway. He explains that, indeed, there is a decrease in the water level of the Paraná and Paraguay rivers. This mainly affects the ports of Rosario, which will soon have to send part of the coarse harvest abroad. “There is a significant decrease in the water level with the particularity that it was rapid and pronounced. This always brings complications in logistics.” He assures that, in part, the downspout is due to the lack of rain in Paraguay and believes that “in some areas in particular, maintenance dredging should be speeded up, although this does not completely solve the problem generated by the downspout.” Disagreement In an open letter, the Practical Civil Association of the Argentine Republic asked the authorities for “their prompt intervention regarding the dredging of critical passages.” It is worth remembering that the person who will be in charge of the project has not yet been named. the Undersecretariat of Ports, Navigable Waterways and Merchant Marine. “We have received complaints from associated pilots about the presence of low funds, which is generating adverse situations that endanger navigation safety,” said the professionals who advise on the route and maneuver of the captains of foreign ships and nationals where pilotage and piloting is mandatory. Added to the lack of depth is the lack of light buoys “which further complicates the safe navigation of the trunk road,” they say. “One of our statutory functions is to fight for the safety of navigation and the current situation violates it,” Javier Torres and Claudio Venturini, president and secretary of the entity, explain to LA NACION. According to professionals, there are underground areas in several passes (such as km. 405, km. 390 and km. 337, they detail), “with the imminent danger that this entails. Vessels that had set sail with the dispatch draft of the day had, in those places, loss of speed and also loss of steering. Unfortunately, a ship dispatched with the draft of the day, sailing in the center of the channel and at km. 337 of the Paraná River, he was stranded. The situation worsened because the tide dropped more than usual and the channel was blocked, leaving loaded ships waiting for the right tide,” they add. “The falling tide was already predicted by the Water Institute. Our claim to the national authorities, via note, is for the correct dredging and updating of the bathymetries.” Both experts say that the main channel of the Paraná River has reduced its depth, “being today in a situation similar to that of the extraordinary downspout. Today there are 1.70 meters more tide than at that time. The river did its natural work and the dredging was not done as it was being done. This situation leads to ships sailing downstream with a lower draft and therefore with less cargo. We understand that this situation affects logistics and competitiveness,” they conclude. When consulted by LA NACION, government sources said that the navigable waterway has adequate maintenance in terms of dredging, beacons and hydrometric registration, and “the necessary tasks are permanently carried out to guarantee the safety of navigation.” They answer that “the accidents that occurred were due to machines that broke down or human errors, and not channel problems. “With respect to the ship “En May”, in Zárate, the pilot in charge declared that he lost control of the ship. While the studies were carried out to free up traffic, navigation could continue along an alternative route that had been conditioned recently (the Paraná Guazú).” Regarding the ship “Clara Insignia” (with problems at kilometer 338 of the Paraná River), “it was found that maintenance dredging had been carried out the previous week, so the place was in perfect condition. During navigation, the side of the canal was rubbed, which caused the ship to be crossed over the river and resting on the outside of the canal; That made the tasks for her release difficult,” the Government defends itself. “The navigation maintenance tasks are carried out without interruption, as has been happening, so there is no risk to the transfer of the harvest, which is scheduled to begin in April,” they conclude. We will have to see how the counterpoint continues. Juan Carlos Schmid, head of the Onboard Dredging and Buoyancy Personnel Union, says that “the system is working. There may be some inconveniences in some sections, but the exportable balances are coming out normally.” Regarding the climatic issues that affect the navigable waterway, he says that “the regime of downflows and floods in the system of the Plata basin has changed a lot. There is a steep downhill at this time. We deepen the river channel, among other tasks, but we do not manufacture water.” Regarding dredging, he says that “if the water flow is the same, no matter how much I move millions of cubic meters, we will not be able to reach the depth.” On the other hand, Schmid wanted to “fix some positions.” He expressed that “throughout all governments there is an absence of public policies. The problem is not only the construction of the canals but for whom we build the canal. We do not have a national warehouse in inland navigation. In addition to drafts and channels, we must promote the creation of a fleet with a national warehouse where Argentina participates in the mobilization of its foreign trade,” he believes. From private to the State Gustavo Anschütz, director of the advanced certification in Port Management and Navigable Waterways at ITBA and international consultant on ports and navigable waterways, tells where we come from with the Waterway issue. “We are talking about the route through which ships navigate from Timbúes to the ocean. It is a system that allows the river, which has natural downspouts and floods, to have its depth assured through dredging and signaling, day and night. It is like transforming a dirt road into a highway because navigable depth is guaranteed.” Remember that in 1995 Argentina made the decision to grant a long-term concession to the VNT for dredging and beaconing. “The company that was willing to charge the least toll won. It was a concession entirely at the businesss risk, with the collection of the toll from the users (foreign vessels). This system was copied for other countries, including Brazil, Colombia and Peru. This caused a huge economic and social impact. In the first years the Miter canal was deepened from 23 to 32 feet and later it was reached 34 feet. There was strict government control so that the contract and service were fulfilled.” He adds that there were no problems or complaints with this private and self-financed system. “Before there was a maximum export of 30 million tons and it went to more than 100 million,” he says. The field maximized the harvest, yields and sales, and the VNT was prepared to transport it, although now, with larger vessels, it needs to deepen the draft. During the previous government, the management of the VNT could at least be called sloppy. Making a summary of the course of his administration since the bidding ended, in 2021, until now, is not only cumbersome but incredible. The management of the river highway went through marches and countermarches. On April 30, 2021, the concession ended in the hands of Hidrovía SA, a partnership between the Belgian dredging company Jan De Nul and the Argentine consortium Emepa. They were there for 26 years. It seemed that a new international tender was going to be launched, with more contenders, but this ultimately did not happen. Those who were left behind (and wanted the business, adjusting the numbers and proposals) wondered what happened, why the tender was frustrated. Among them, there was another Belgian company, in addition to Jan De Nul, a Dutch one, a Danish one and a Chinese one, some in partnership with Argentine companies. As a result, the General Administration of Ports (AGP) was in charge of managing the Waterway in its Argentine section for the State, and decided to extend Jan De Nuls contracts for dredging (with the new name of Compañía Sudamericana de Dragado) and Emepa, for beacon tasks, now separately after the dissolution of the company. The AGP reported in October 2023, the latest data available, income of US$17,000,000 and expenses of US$17,872,000 in the same month. LA NACION contacted Jan De Nul to find out the details of the dredging problems mentioned above, but the company declared that AGP is the entity in charge of managing the work, and that therefore it will not make statements. Tender The users of the Waterway had a good opinion about the maintenance work during private management, which is why different entities promote an international and transparent tender. Yes, there are requests for the rate to be lowered. Julio Delfino, head of the Navigation Center, says that “the Waterway tender is the cornerstone and the first necessary step to advance the Argentine logistics infrastructure. Bulk and containers need that tender to happen.” For Anschütz, “unfortunately in 2021 the long-term concession is canceled and it is moved to a system administered by the State. that began to collect the toll and then pay the contracted company. This system is reaching failure due to the delays in payments that are occurring. Then the dredging company can say “when they pay me, I dredge.” What is the advantage of having the State collect the toll as an intermediary to pay the contractor?” Anschüt asks. Payment problems could drag on from the last half of 2023, according to sector sources. Furthermore, two or three of Jan De Nuls largest dredges are no longer in Argentina. They currently work with three. How many people work in dredging? “In the corridor there are around 400 colleagues plus those who are in the workshops and in the rest of the country there are 100 more,” says Schmid. “If there is a delay in settlements and this implies non-payment of salaries, they will have problems with us. Until now we dont have that problem,” he adds. “Clearly we have to go for a long-term, business-risk bidding scheme and seek to cover all services,” says Anschütz. The idea is that, with the lowest possible rate, there is a commitment to further deepen the channels, and that the work includes multiple improvements in the quality of service. “If the canals are improved and deepened to at least 38 feet, export income could be doubled,” says the ITBA expert. There is a report from the Rosario Stock Exchange called “Analysis of Alternatives for the Trunk Waterway”, from 2022. There is reference to a project carried out by Latinoconsult, which aimed at the Waterway being able to receive larger ships (carrying it from 34 feet maximum, to 42 feet). 80% of the large vessels that enter to look for export products exceed the current draft. And it also suggests that the toll collection continue. This way the State would not have to contribute a single peso. First of all, Alfredo Sesé warns, “the river belongs to the Argentine State and cannot be privatized.” The clarification is worth it. Although the future scheme is not closed, it could be different from that of the 90s, and it may not be the State that defines what work or what service is needed, but rather there are proposals from the private sector, although the framework must be analyzed. regulatory. Regarding the possibility of calling for a tender, Sesé says that there has still been no news on the matter. “There are some clues included in the omnibus law that was withdrawn from Congress. We are waiting for definitions, although we understand that there would be a tender,” he adds. For Sesé, “the severity of the downspout, added to the problems in dredging, means that we have to get to work not today, but yesterday. That is, with utmost urgency.” Thus, the future management of the VNT becomes as essential as other urgent issues in Argentina. The decisions made today will impact the short, medium and long term.
Country Argentina , South America
Industry Construction
Entry Date 05 Mar 2024
Source https://www.construar.com.ar/2024/03/hidrovia-contrapuntos-desafios-y-una-larga-espera-para-una-postergada-licitacion/

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