Hidrovía: Challenges and Future Scenarios for Competitiveness – Trade News | 22/12/25

The competitiveness of the Paraguay–Paraná Waterway faces several key challenges ahead of and beyond its upcoming concession: the primary hurdle is the effective execution of over US$ 420 million in initial investment in a country with a track record of failed tenders; tariff escalation could be significant due to external cost pressures like inflation and fuel; governance will require the national authority (ANPYN) to have the technical and political capacity to oversee a complex contract; and geopolitical tensions surround the participation of international bidders. If the tender is successfully awarded and works are carried out, deepening the channel to 42 feet and modernising navigation and connectivity could reduce logistics costs and restore competitiveness; however, a failed tender might extend outdated contracts without investment. The most likely outcome is an intermediate scenario with transparent awarding, moderate delays and gradual infrastructure improvements that help regain competitiveness over time. Link to Article