The Subsecretariat of Ports and Navigable Waterways (Sspyvn) of Argentina has mandated the requirement of holding an OSRO (Oil Spill Response Organization) coverage certificate for the prevention and control of hydrocarbon spills for all ships and/or barge convoys “of any type and cargo” navigating through the Main Navigable Waterway (VNT) of the Paraguay-Paraná Waterway (HPP).

Additionally, the regulation states that the certificate must be issued by an Argentine national company, authorized by the Naval Prefecture of that country.

The same Article 1 of the regulation holds shipowners and maritime agents representing the vessels jointly responsible to the General Port Administration for any non-compliance with the provisions outlined.

In this regard, Article 2 instructs the General Port Administration (AGP), through its Risk Prevention and Safety Management department—responsible for the enforcement of the Emergency Plan for Companies in Charge of Handling Hydrocarbons, Other Harmful, Hazardous, Potentially Dangerous, and Harmful Substances—and the Planning and Control Management department, to monitor potential violations.

Following the publication of the regulation, some foreign trade stakeholders and users of the VNT commented that while the insurance requirement is appropriate, they disagree with the restriction that it must be through an Argentine insurer. In some cases, it was even mentioned that a specific company name has already been suggested.

They further explained that, as it stands, it would be impossible to secure a competitive price, as the insurer could set an arbitrary rate.