New alternatives for financing a river dredging project (Argentina) Raul S. Escalante – Sebastián...

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 – Confluencia640 Km

Santa Fe – Ocean1000 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 – Confluencia640 Km

Santa Fe – Ocean1000 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 – 2010Santa Fe – Ocean

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1,2 $ / Ton

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Toll 2010Santa 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 tonnagetb: AtoN coefficient ($/ton)

Toll Formula - Dredging

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TD = td x CF x NRT

td: Dredging coefficient ($/ ton)

CF: Correction FactorNRT: 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 PracticesShort Dredging Contract

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

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Other PracticesPublic 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