Key points

• The bill allows vessels of any flag to operate between Argentine ports.
• Tax changes were agreed with northern governors to reduce logistics costs.
• The goal is to cut the current cost of water transport by three to five times.
• The measure aims to reactivate northern ports and improve the competitiveness of regional economies.
• The bill will be sent to Congress this week after the negotiations.

The national government is moving forward this week with the submission to Congress of a bill that resumes the deregulation of maritime and river cabotage, after reaching key agreements with governors from the north of the country.

The proposal, driven by Federico Sturzenegger, seeks to reduce the logistics costs that currently weigh on regional production and to facilitate the transport of goods between Argentine ports. According to the text that will be debated, the operation of vessels of any flag will be authorized, without nationality restrictions, provided they comply with existing safety and environmental regulations.

In figures, the cost of water transport in Argentina is between three and five times more expensive than in neighboring countries. For a merchant or producer in the north, this translates directly into higher prices for inputs that reach the interior and tighter margins when exporting.

The agreement with the northern provinces was key to unlocking the initiative. The governors requested and obtained tax modifications to offset possible competition from foreign vessels. Among the changes is a review of customs duties and port fees that currently make the service more expensive.

What does this mean for your pocket and for the provinces?

For regional economies, lowering logistics costs can mean greater competitiveness. If a sugar producer from Tucumán or a soybean producer from Chaco can move their cargo by water at a lower price, that impacts the final price of products that reach a supermarket in Buenos Aires or the port for export.

The project also aims to reactivate northern ports that currently operate well below capacity. In recent years, Argentine cabotage has lost share to truck transport, which is much more expensive but more flexible given the lack of efficient river alternatives.

The productive sector welcomes the move, although it asks that the rules be clear and stable. A local shipowner consulted noted that the arrival of foreign vessels can lower rates, but warned that without investment in port infrastructure the positive impact could be diluted.

The government hopes the regulation will boost productive activity in the north and the littoral region, areas that have historically demanded lower transport costs in order to compete. If approved, it would be one of the first concrete advances in logistics deregulation after months of negotiation with the provinces.

To put it in context: today, moving a ton of grain from a Paraná River port to Buenos Aires costs significantly more than in Uruguay or Paraguay. With this reform, the objective is to bring those numbers closer and ensure the savings ultimately reach the producer and the final consumer.

The definitive text will be presented in the coming hours in Congress. Its consideration will depend on the priorities of the legislative agenda, but the prior agreement with the northern governors gives it important political support to advance in the committees.