1. PILOTAGE IN ARGENTINA

2. Rio de la Plata (Pilotage zone)

3. Argentina Emerging economy Competition since 1991
Particular Pilotage System
Consequences

4. Actors
Pilot
Government
Owner /Agent

5. 1991- Context Neoliberal Government Privatization by decree
Strong Lobbies
Business = Pilotage ??????
Government
Pilots

6. The decree……. TARGETS: Reducing the argentine cost
Greater administrative and operating agility
Free supply and demand
Reducing the argentine cost
The service fee is agreed between customers and pilots.
A maximun rate is fixed
Registration open (unlimited number of pilots)

7. Government mistakes 2 Errors Pilotage =Business
Pilots & agents /PARTNERS

8. Explosive Mixture Pilot Owner (entrepreneur) + Explosive mixture
Intermediary

9. Context 1994
Pilots confronted
Intermediaries

10. Pilot Owner - Entrepreneur
Takes over 70% of the market
Strong support of young pilots, who receive only 30% of their service.
Intermediaries = Improve their income

11. Imminent Conflict 70% pilots Working under IMPA CONCEPT 30% Pilots
Working for its owner
30%market
4 services
X pilot x month
70% market
20 services
x pilot x month

12. First Stage: Impact The government: failure Businessmen: big profits
Pilots: economic inequalities
Intermediaries: excellent business

13. Second Stage News divisions (more companies) IMPA (pilots threats )
Reaction of Intermediaries
Pilots agreement

14. INCREASED COSTS
40% of argentine exports are made by San Lorenzo -Ocean route.
A vessel must sail 330 NM to reach San Lorenzo from the Ocean.
Requires 10 pilotages services (4 Rio de la Plata, 4 Rio Parana y 2 harbour pilots) inbound/outbound

15. Total cost of the Panamax
2003: U$s
2009: U$s
2011: U$s
2013: U$s

16. Impact of the Pilotage Year 2003: 35,6% Year 2009: 41,7%

17. Results 47 % 35 % Year 2003 Year 2013 Cost of Pilotage

18. Results Increase in pilotage from 2003 -2013 2003: U$s 33.035 195 %

19. Third Stage: Final Impact
The government: Total failure
Rates: Great increase
Pilots: improving their incomes
Pilots employed: worsening
Intermediaries: maintain their incomes
kickbacks

20. If we do this, vessels are not going to come anymore
Paradigm….
If we do this, vessels are not going to come anymore
Who says ????

21. Thanks……