River transport options

Normative and regulatory level

Despite the Transport Agreement for the HPP, in force since April 1992, the provision of river transport services takes place in a diverse regulatory environment. There seems to be an almost discretional application of national provisions on Paraguay and Paraná Rivers, which hinders the effective and efficient provision of transport services. To reduce this regulatory divergence, the regulatory and normative framework needs to be strengthened, the IWT needs to be promoted at regional level, and the role of institutions such as the CIH needs to be supported.

In this context, as part of the effective management of river transport services, the following public policies supporting regulatory frameworks should be considered. This includes to conduct a review of all laws related to the national merchant navy and the law of the General Naval Prefecture, in particular those listed below in chronological order:

• Commercial code, book three “of the rights and obligations resulting from navigation”, approved by law of 5 October 1903; entered into force on 1 January 1904;

• Captaincy regulation, approved by law No. 928 of 7 September 1927;

• Law No. 429 of 15 July 1957, “creation of the Directorate General of the Merchant Navy - attributions”;

• Law No. 476, of 15 October 1957, “code of fluvial and maritime navigation”.

Conduct a review the following agreements and national decrees:

• The Fluvial Transport Agreement for the Hidrovía Paraguay Paraná, (1992) in all its scope of transit, from the Port of Cáceres in Brazil, to the Port of Nueva Palmira in Uruguay, to ensure its uniform application in the navigation facilitation criteria, documentary requirements, and free transit of merchant vessels for all signatories;

• The Free Navigation Treaty signed between the governments of Paraguay and Argentina, which recognizes titles and qualification of merchant personnel;

• Decrees No. 1994/2014 and 2115/2014, with the goal of avoiding duplication of inspections and certification by the Directorate General of the Merchant Navy and the General Naval Prefecture, including the issuance of certificates;

• Decree No. 1994/2014, (including articles 15 and 16 and subsection e) and its relation to the provisions of law 1295/1998 and article 14 of the Transportation Agreement for the Hidrovía Paraguay-Paraná, relating to the leasing system as a financial instrument for the renewal of vessels;

• Decree No. 14490/1952 as related to pilotage areas to the North and South of Asuncion;

• Decree of the Executive Power No. 11075/2007 which brought about the creation of the Navy Nautical School institution. Specific issues to be addressed include: the budget; the implementation of a management system of training and qualification of Merchant Navy personnel in accordance with the international standards; the use of the School Ship for the training of deck personnel and machines, with practical navigation exercises on board, by the Navy and the private sector;

• The Free Trade Area agreement between MERCOSUR and the European Union in relation to any cabotage arrangements.

Infrastructure level Consider the following options:

• Undertake a study of port services for container traffic, general cargo, bulk cargo, and the handling of liquid cargoes as well as fuels and their derivatives and vegetable oils. A comparison of vessel loading and unloading times at different ports will help identify areas for improvement;

• Conduct an assessment of access roads to and from ports located on the banks of the Paraguay and Alto Paraná Rivers, ensuring the flow of export cargoes and the receipt of imports goods. Ensuring that there is year-round access and no impediments, will greatly facilitate the movement of goods between transport modes;

• Implement an electronic vessel monitoring system based upon AIS for the PGN to better control vessel traffic;

• Conduct a comprehensive dredging plan on the Rio Apa - Rio Pilcomayo stretch including the 536 km that are in Paraguayan sovereignty and where the vast majority of difficult navigation steps are found;

• Conduct a comprehensive dredging plan on the Rio Pilcomayo-Confluencia with the Paraná River section, including the 390 km of shared sovereignty between Paraguay and Argentina, under the Regulatory Framework of the Bilateral Dredging and Maintenance Agreement the Navigable Way, November 1969;

• Conduct a comprehensive dredging review of the section Yacyreta Dam-Confluence with the Paraguay River of 223 km, a shared stretch between Paraguay and Argentina;

• Conduct a review of the signage and marking of the entire waterway of the Paraguay River from Puerto Caballo-Apa River (shared section of Paraguay with Brazil); Rio Apa-Rio Pilcomayo of sovereignty of Paraguay; and the Rio Pilcomayo section-Confluence with the Paraná River (section shared by Paraguay with Argentina);

• Conduct a review of the signage and beaconing of the Alto Paraná River, from Presidente Franco Port, to the Yacyreta Dam and from the Yacyreta Dam (under lock) to the Confluence with the Paraguay River (shared stretch between Paraguay and Argentina).

Operational level

Consider the following options:

• Conduct a review to implement a computer system in the Naval Prefecture to expedite the procedures for the issuance of roles, presentation of manifests, permits for repairs and maintenance, registration of personnel on board, authorization to load fuels and supplies, management of vessel certificates, registration and certification of merchant personnel, and all aspects related to the role of the Prefectural Control Entities as Maritime Authority;

• Conduct a review of continuous service operation (24 hours a day, 365 days a year) of the PGN;

• Investigate the occurrence of vessels without proper registration and with irregular navigating personnel, who could carry out illegal acts in the river, such as theft of fuels and merchandise from vessels, as well as the unrestricted control of possible contaminations of dangerous substances (e.g. drugs);

• Implement the opening of public offices 24  hours a day, 365  days a year including the Customs and Port Administration, Naval Prefecture, Migrations, Ministry of Health, Ministry of Environment, and National Anti-drug Secretariat, etc., as detailed in the Transportation Agreement for the Paraguay-Paraná Waterway.

The definition and implementation of these options should take into account several criteria such as costs, time for implementation, and the potential impact in strengthening river transport services.

For instance, investments in intermodal infrastructure (for example, roads to and from ports) may have a very important potential impact in the sector and it may require significant investment and time to implement. The digitalization of support systems (for example, the computer system for the Naval Prefecture) may have a lower potential impact and it may require less investment and time to implement. Figure 33 provides an illustration, while the assessment of the actual determinants requires specific analyses.

Figure 33. Illustrative mapping of initiatives to strengthen river transport services in Paraguay

Growing implementation cost Growing impact

5

6 1

4 3

2

Growing implementation time

Note: 1 – review of laws and agreements; 2 – intermodal investments; 3 – dredging; 4 – other investments (e.g. signage);

5 – digitalization of support systems; 6 – continuous operation models. The determination of the actual relative impacts, costs and implementation times requires specific analyses. This figure is presented as an illustration of a possible outcome and does not replace the need to conduct such analyses.

C. Options on professional services associated with the