New alternatives for financing a river dredging project (Argentina) Raul S. Escalante – Sebastián García – Martín D. Civeira HIDROVIA SA

The world Argentina

General location

Argentine Waterways 3.000 km

Hidrovía S.A. is a bi-national Company formed by: Jan de Nul NV (from Belgium) Emepa S.A. (from Argentina) With the object of doing: Capital and maintenance dredging Jan De Nul Aids to Navigation system Emepa

Waterway in charge of Hidrovía Santa Fe – Confluencia 640 Km Santa Fe – Ocean 1000 Km

Dredging and AtoN services in Argentina Owner: Argentine Government Concession Expiring: 2021 Risk Contract Incomes: Santa Fe- Ocean: Toll Santa Fe- Confluencia: Argentine Government Financing

Santa Fe – Ocean Waterway 25 ft navigable depth 34 ft navigable depth Year 2011

Santa Fe - Confluencia 10 ft navigable depth Year 2011/ 2012

Vessels Santa Fe – Confluencia 640 Km Santa Fe – Ocean 1000 Km

Tasks performed Capital and maintenance dredging Bathymetric surveys for depth control Aids to Navigation: deployment and maintenance Tide, waves and wind measurements Environmental Management Plan Projects and Studies Department Traffic Control

Total goods movement (international and domestic) in the waterway (SFO) – Year 2010 Total: 111 million tons

Total goods movement (international and domestic) in the waterway (SFN) – Year 2010 (metric tons) Total: 16 million tons

Toll and Subsidy 1995 – 2010 Santa Fe – Ocean

Toll 2010 Santa Fe – Ocean 1,2 $ / Ton

Toll Formula T = TD + TAtoN TD: Dredging toll TAtoN: Aids to Navigation toll

Toll Formula - AtoN TAtoN = tb x NRT NRT: net register tonnage tb: AtoN coefficient ($/ton)

Toll Formula - Dredging TD = td x CF x NRT td: Dredging coefficient ($/ ton) CF: Correction Factor NRT: net register tonnage

Toll Formula - Dredging

Commodities (soybean) price evolution

Port and River Costs River Pilotage Variable Port costs: berth, different vessel and passenger taxes, tug… Fixed Port costs: customs, maritime agency…

Costs Compared Pilotage (round trip Recalada-Rosario) 2,35 HV Toll 1,20 Tugboat 0,79 Port taxes 0,30 Maritime Agent 0,29 Berth and port facilities (per day) 0,10 Commodities (soybeam Chicago) + 515,00

Other Practices Short Dredging Contract Bidding process Time consuming Administrative aspects Siltation after end of contract Possible delays in payment

Other Practices Public Dredging Governments can sometimes be quite efficient, but... Delays Objectives not accomplished More “relaxed” controls

Dredging is an Aid to Navigation

Conclusions Public financing is difficult to maintain through the years Dredging and AtoN works in charge of the Government sometimes are not as efficient as they should Our financing depends only on vessels using the waterway, which reasonable toll fees

Thanks for your attention