New alternatives for financing a river dredging project (Argentina)

Raul S. Escalante – Sebastián García – Martín D. Civeira

HIDROVIA SA

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The world

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Argentina

General location

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Argentine

Waterways

3.000 km

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Hidrovía S.A. is a bi-national Company formed by:

• Jan de Nul NV (from Belgium)

• Emepa S.A. (from Argentina) With the object of doing:

• Capital and maintenance dredging Jan De Nul • Aids to Navigation system Emepa

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Waterway in charge of Hidrovía

Santa Fe – Confluencia 640 Km

Santa Fe – Ocean 1000 Km

• Owner: Argentine Government

• Concession Expiring: 2021

• Risk Contract

• Incomes:

Santa Fe- Ocean: Toll Santa Fe- Confluencia: Argentine Government Financing

Dredging and AtoN services in Argentina

25 ft navigable depth

34 ft navigable depth

Year 2011

Santa Fe – Ocean Waterway

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10 ft navigable depth

Year 2011/ 2012

Santa Fe - Confluencia

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Santa Fe – Confluencia 640 Km

Santa Fe – Ocean 1000 Km

Vessels

• Capital and maintenance dredging

• Bathymetric surveys for depth control

• Aids to Navigation: deployment and maintenance

• Tide, waves and wind measurements

• Environmental Management Plan

• Projects and Studies Department

• Traffic Control

Tasks performed

Total goods movement (international and domestic) in the waterway (SFO) – Year 2010

Total: 111 million tons

Total goods movement (international and domestic) in the waterway (SFN) – Year 2010 (metric tons)

Total: 16 million tons

Toll and Subsidy 1995 – 2010 Santa Fe – Ocean

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1,2 $ / Ton

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Toll 2010 Santa Fe – Ocean

Toll Formula

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T = TD + TAtoN

TD: Dredging toll TAtoN: Aids to Navigation toll

Toll Formula - AtoN

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TAtoN = tb x NRT NRT: net register tonnage tb: AtoN coefficient ($/ton)

Toll Formula - Dredging

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TD = td x CF x NRT td: Dredging coefficient ($/ ton) CF: Correction Factor NRT: net register tonnage

Toll Formula - Dredging

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Commodities (soybean) price evolution

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Port and River Costs

• River Pilotage • Variable Port costs: berth, different vessel

and passenger taxes, tug… • Fixed Port costs: customs, maritime agency…

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Costs Compared

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• Pilotage (round trip Recalada-Rosario) 2,35 • HV Toll 1,20 • Tugboat 0,79 • Port taxes 0,30 • Maritime Agent 0,29 • Berth and port facilities (per day) 0,10 • Commodities (soybeam Chicago) + 515,00

Other Practices Short Dredging Contract

• Bidding process • Time consuming • Administrative aspects • Siltation after end of contract • Possible delays in payment

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Other Practices Public Dredging

• Governments can sometimes be quite efficient, but... • Delays • Objectives not accomplished • More “relaxed” controls

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Dredging is an Aid to Navigation

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Conclusions • Public financing is difficult to maintain through the years • Dredging and AtoN works in charge of the Government

sometimes are not as efficient as they should • Our financing depends only on vessels using the waterway,

which reasonable toll fees

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Thanks for your attention