are still undefined, and it is unknown whether exports will move through Puerto Bush (Bolivia) or through Ladário (Brazil). Uruguay Under the HPP framework, Uruguay maintains a dispute with Argentina, Paraguay and Brazil because its vessels are not allowed to navigate in the HPP without pilots from each country. Under both the multilateral and bilateral frameworks, this matter is part of the CIH agenda. Although Uruguay only participates in a limited portion of the HPP (the segment below the Uruguay River that allows convoy passage to Nueva Palmira), it has an active policy regarding the HPP because it aims to attract transshipment freight. Significant transfer infrastructure projects planned in the Nueva Palmira vicinity have been delayed, due in part to the global economic crisis as well as to administrative authorization delays. For the moment, the new transfer terminal project of Rio Tinto in La Agraciada has been discontinued. The ADM grain transfer terminal in Barranca de los Loros (also in the Nueva Palmira vicinity) has been temporarily suspended as well. On the other hand, the elimination of VAT exemptions implemented by Argentina for temporary soy imports coming from north of the HPP will likely lead to the recovery of two million tons in the existing terminals in Nueva Palmira, which had been diverted to the port of Rosario. Brazil Brazil has implemented an ongoing development policy for waterway navigation and cabotage at national level. Over the past few years, the country has maintained a favorable position on the HPP’s development. The recent National Transport and Logistics Plan favors waterway transport; with regard to the HPP, the plan previously appeared to favor road transport toward the Atlantic ports. In the exclusively Brazilian section of the HPP, the existing signaling is more functional than in the rest of the countries, although it does have two difficult passages. Although grain and oil exports from Brazil through the HPP are relatively limited, mineral exports have been extremely important but are currently uncertain due to the global crisis. Mineral export figures totaled four million tons annually, but are falling significantly because only one of the four mines in the Corumbá area is functioning. In fact, after the announcement of the sale of the Rio Tinto mines and the fleet from Rio Tinto to Vale do Rio Doce, there has been strong uncertainty in the market concerning the continuation of the Rio Tinto expansion plans. This situation is creating major uncertainty for the HPP system’s demand forecasts.
are still undefined, and it is unknown whether exports will move through Puerto Bush (Bolivia) or through Ladário (Brazil). Uruguay Under the HPP framework, Uruguay maintains a dispute with Argentina, Paraguay and Brazil because its vessels are not allowed to navigate in the HPP without pilots from each country. Under both the multilateral and bilateral frameworks, this matter is part of the CIH agenda. Although Uruguay only participates in a limited portion of the HPP (the segment below the Uruguay River that allows convoy passage to Nueva Palmira), it has an active policy regarding the HPP because it aims to attract transshipment freight. Significant transfer infrastructure projects planned in the Nueva Palmira vicinity have been delayed, due in part to the global economic crisis as well as to administrative authorization delays. For the moment, the new transfer terminal project of Rio Tinto in La Agraciada has been discontinued. The ADM grain transfer terminal in Barranca de los Loros (also in the Nueva Palmira vicinity) has been temporarily suspended as well. On the other hand, the elimination of VAT exemptions implemented by Argentina for temporary soy imports coming from north of the HPP will likely lead to the recovery of two million tons in the existing terminals in Nueva Palmira, which had been diverted to the port of Rosario. Brazil Brazil has implemented an ongoing development policy for waterway navigation and cabotage at national level. Over the past few years, the country has maintained a favorable position on the HPP’s development. The recent National Transport and Logistics Plan favors waterway transport; with regard to the HPP, the plan previously appeared to favor road transport toward the Atlantic ports. In the exclusively Brazilian section of the HPP, the existing signaling is more functional than in the rest of the countries, although it does have two difficult passages. Although grain and oil exports from Brazil through the HPP are relatively limited, mineral exports have been extremely important but are currently uncertain due to the global crisis. Mineral export figures totaled four million tons annually, but are falling significantly because only one of the four mines in the Corumbá area is functioning. In fact, after the announcement of the sale of the Rio Tinto mines and the fleet from Rio Tinto to Vale do Rio Doce, there has been strong uncertainty in the market concerning the continuation of the Rio Tinto expansion plans. This situation is creating major uncertainty for the HPP system’s demand forecasts.
549000ESW0WHIT1a0Report010NewFinal.docx