Opinion Sur
Conclusions
- The realization of the Magdalena Canal project includes a strategic work, with the capacity to transform the national economic geography and reaffirm sovereignty over waterways.
- In geostrategic terms, it provides a direct exit to the sea and improves fluvio-maritime connectivity, which contributes to the integration into the world, as well as enables the consolidation of Bicontinental Argentina and the connection of continental, insular, and Antarctic maritime national spaces.
- Currently, Punta Indio Canal is the only way to enter (and exit) the ports of the Río de la Plata, Paraná River, and Uruguay River, both for overseas ships from Europe, Asia, or other parts of the world, as for ships that come from the south of our country. This implies that ships departing from an Argentine port to another Argentine port must pass through waters of common use and request authorization from a foreign maritime authority for transit.
- As a counterpart, the Magdalena Canal, allows an autonomy for the foreign trade of our country, by enabling a fluvial route without external conditions until the exit to the sea. At the same time, it will allow cabotage vessels to make a complete tour of national administration waters in their route between Argentine ports.
- The economic and navigational benefits of the Magdalena Channel can be summarized in some key points:
- Of the set of delays that currently occur in the Trunk Waterway, 65% is generated in the Punta Indio Channel.
- The improvement in absolute navigation times may be increased between 4 and 10% (depending on the final trace) for northern traffic and 80% for southern traffic.
- This reduction in navigation times has as a direct correlate that the use of the Magdalena Channel would generate the national navigation system between USD 85 million and USD 89 million of annual savings.
- In turn, as a more efficient navigation channel, better safety conditions are generated for river transport, which will also result in lower cabotage costs.
- The new navigation route will strengthen local economies and promote the entry of foreign currency into the country, as a result of the provision of services to the ships that are currently provided from Uruguay.
- In addition to the savings for navigation costs and waiting times, the execution of the work implies lower maintenance costs due to the characteristics of its sedimentation and that it is a shorter channel.
- Finally, the economic benefit of a potential transfer of services for ships using the Magdalena Canal is estimated at USD 154 million in the most optimistic scenario and USD 60 million, per year, in the most moderate case.
- Therefore, if a linear calculation is made that takes into account the savings generated by the improvement in navigation and the income in dollars linked to the eventual capture of services to ships, the Magdalena Canal has the potential to generate profits of between USD 145 million and USD 243 million per year.
- The technical conditions to move forward with the construction of the Magdalena Canal are already in place: the preparation of the tender specifications was complied with, the instances of citizen participation that marks the regulations and consultations at the international level required by the agreements signed by the Argentine State.
- While the trunk system has worked correctly over the past two decades and the navigation and predictability conditions of our waterway have been improved, it is possible to identify shortcomings and aspects to improve. Throughout this report, difficulties have been pointed out that express the need for an improvement of the system, both to strengthen sovereignty, as well as the fluvial infrastructure and achieve a reduction of logistics costs.
- The execution of the Magdalena Canal presents a logistical solution to these difficulties. Based on the above, it is possible to conclude that, in the short term, it is feasible and necessary to move forward with this work, which would imply a fundamental transformation for the fluvio-maritime infrastructure, the efficiency in navigation and above all, a radical change in the national economic and political geography.
You can also download the report at this link (PDF format).
CEPA (Centro de Economía Política Argentina Center for Argentine Political Economy)
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