Broad Consensus to Add Technology to Improve the Waterway, but Cost of New Security System Remains Unresolved


The national government received strong business support for the new waterway bidding process during a meeting held on Tuesday at the Rosario Stock Exchange, attended by over fifty representatives from the sector. Unlike the initial, failed attempt to tender a new private operator—marked by suspicions among dredging companies of rigged deals and user criticism over bidding terms that increased toll costs—this time, representatives from ports, shipping companies, pilotage, production, industry, and technical experts expressed support for the new process.

The two main topics discussed at this second technical dialogue meeting organized by the government were the channel design and the incorporation of new technologies, with broad consensus among business leaders. They left the meeting convinced that the officials, who took notes and avoided definitive statements, were open to listening and incorporating their suggestions.

Iñaki Arreseygor, head of the National Ports and Navigation Agency, chaired the meeting at the Stock Exchange. Despite a protest by river unions, which gathered around 150 people outside the venue to oppose cabotage deregulation, the 70 attendees managed to navigate the situation. They also agreed to support the decision to liberalize traffic between Argentine ports, previously restricted to a small number of Argentine-flagged vessels.

Santa Fe’s Minister of Productive Development, Gustavo Puccini, endorsed the measure, stating it would facilitate operations for smaller ports. He also took the opportunity to discuss with Tecplata’s CFO, Facundo Pennacchioni, the possibility of reactivating the river connection between the provincial capitals of Santa Fe and Buenos Aires, which had been halted, partly due to the high cost of regulated cabotage.

The meeting included representatives from the Rosario Stock Exchange, the Chamber of Private Ports, the Oilseed Industry Chamber, the Argentine Industrial Union, the Chamber of Port Activities, the Navigation Center, the Argentine Rural Society, CRA, the Cereal Exporters Chamber, the Pilots Chamber, the Plata Basin Transport Committee, experts from the National University of Rosario, the National University of the Litoral, private research centers like the Regional Development Institute, the Rosario stevedores’ union, and representatives of public and private ports.

Technology Package
A key conclusion from the meeting was the need for the new concession to not only increase the depth of the main channel and include complementary works (such as anchorages, maneuvering areas, and wider channels) but also incorporate a “technology package” to improve navigability. The waterway urgently requires technological modernization, including both software and hardware solutions, to enhance navigation efficiency and reduce transport costs and times.

The meeting reviewed a range of new technologies to be incorporated, with users expressing willingness to pay for these new services (included in the toll fee). These include optimized bathymetric surveys, transitioning to high-resolution and frequent survey models, integrating geospatial sensors and systems, automating and systematizing data with public access, incorporating unmanned platforms and complementary sensors, adopting AIS-AtoN technology for digital navigation aids, and new hydrometric systems. These innovations aim to enable more efficient waterway management.

Private sectors pushing for the latest navigation technology even showed willingness to finance (via tolls) the winning dredging company to equip public authorities with hardware and software. This is significant, as public authorities have often been wary of technological advancements reducing their roles. For instance, it was proposed that the Naval Hydrography Service receive a control center to access real-time river data for publishing digital nautical charts.

Public Security
However, a point of contention arose regarding the incorporation of cutting-edge surveillance technology, which remains unresolved. The previous bidding process included (and the government wishes to reinstate) the installation of a P25 (Project 25) communication system, a digital trunked radio architecture designed for emergency services and critical operational environments. Originally developed in the U.S., P25 is a globally adopted standard ensuring reliability, robustness, and continuity in tactical communication, even in high-congestion scenarios, partial system failures, or operational disasters.

The proposed P25 system would include:

  • A Master Site in Buenos Aires with redundant management and dispatch consoles.
  • 32 to 34 strategically distributed repeater sites along the waterway with UHF-R1 coverage, uninterrupted power, and redundant links.
  • Mobile and portable terminals for dredging crews, river patrols, monitoring centers, and technical staff.

The national government is pushing for a Motorola advanced monitoring system, including long-range facial recognition and cargo control systems, with costs ranging from $60 million to $150 million, to be included in the toll fee. However, businesses (ports, exporters, shipping companies) agree on the need for this technology, especially given rising drug trafficking, but argued that its funding should come from other sources, as it pertains to public security. They urged Arreseygor to remove this cost from the toll components to avoid increasing fees and explore alternative funding, such as multilateral loans or U.S. government support, given the technology’s origin. These alternatives have not yet gained traction.

Other companies, like Siemens, offer similar systems at lower costs, but the government seems intent on acquiring U.S. technology. The funding for security technologies remains unresolved, with users seeking alternative proposals. River and maritime transport expert Captain Sergio Borrelli downplayed concerns, noting that technology prices tend to decrease over time, making currently expensive systems more affordable in the near future.

Other topics were discussed, such as Puccini’s emphasis on the need for investment in port access infrastructure. The Santa Fe port, in particular, acknowledged that its terminal, used for barge traffic, does not require non-natural dredging but requested improvements in buoyage, while keeping the option open for deeper drafts if larger vessels are needed in the future.

Contentious issues like toll prices, tariff formulas, dredging depth (the Stock Exchange pushed for 44 feet), the environmental impact of new works, and the concession’s duration were only briefly touched upon, revealing differing opinions among users. However, the supportive atmosphere suggested there would not be the same level of criticism as in the first failed bidding attempt.

The government’s announcement that the United Nations Conference on Trade and Development will advise on drafting the bidding terms and conduct a comprehensive audit of the process to ensure competition, further reassured attendees of a transparent process.