The national Government is working on a bill that could profoundly modify the freight transport system in Argentina. The initiative aims to reform the cabotage regime to increase competition among operators and promote greater use of fluvial and maritime navigation as an alternative to land transport.

The proposal is part of the deregulation package being prepared by the Ministry of Economy and the Ministry of Deregulation and State Transformation. According to the official view, the country underutilizes its port and fluvial infrastructure to move goods between national ports, while a large part of production continues to rely heavily on truck transport.

With the reform, the Executive branch seeks to encourage greater participation of water transport to reduce logistical costs and expand the options available to companies. In this sense, it considers that the Paraná-Paraguay Hidrovía represents an asset with greater potential for internal cargo movement.

One of the central changes in the project involves flexibilizing the cabotage regime, allowing foreign-flagged vessels, along with their crews, to provide cargo transport services between Argentine ports, both in maritime and fluvial navigation.

The Government maintains that increased competition among operators could lead to lower transport costs, in a strategy similar to the opening applied years ago in the commercial aviation market. The official expectation is that this competition will help improve the country’s logistical efficiency.

The initiative also includes modifications to the regime of maritime pilots (prácticos), the professionals who assist captains during entry and exit maneuvers at Argentine ports. The objective is to introduce changes to a system considered strategic for port operations.

Another of the most sensitive aspects of the project involves the national merchant marine. The proposal establishes that foreign vessels would operate under the legislation of their country of registry, which implies differences in labor, tax, and registration matters compared to the current regime governing Argentine-flagged vessels.

This point anticipates a debate with national shipping companies, maritime unions, and other sectors linked to the activity, which have historically defended the priority of the national flag for cargo transport between ports in the country.

The reform could also modify the distribution of cargo transport. If the use of fluvial and maritime routes increases, part of the routes currently served by trucks could shift to ships, altering the existing logistical structure.

The project has not yet been introduced in Congress, but it is among the main initiatives of the Government’s deregulation program. In addition to the cabotage reform, the package includes changes to the Superintendency of Insurance of the Nation, aimed at focusing controls on the financial solvency of companies and reducing administrative regulations on the sector.