{"id":50043520,"date":"2021-05-31T18:52:53","date_gmt":"2021-05-31T17:52:53","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=43520"},"modified":"2023-01-12T19:42:33","modified_gmt":"2023-01-12T19:42:33","slug":"43520-parana-rivers-historic-low-levels-test-argentinas-soy-trade","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/water\/43520-parana-rivers-historic-low-levels-test-argentinas-soy-trade\/","title":{"rendered":"Paran\u00e1\u2019s historic low levels test Argentina\u2019s agriculture trade"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Almost 5,000 kilometres long, the Paran\u00e1 is one of the longest lowland rivers in the world. Yet it has less and less water, prompting uncertainty among experts as to the causes of a phenomenon that hampers many of the river&#8217;s biological and commercial functions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lower rainfall in the region has impacted the river&#8217;s flow, which has dropped to less than half of <\/span><a href=\"https:\/\/www.eby.org.ar\/informe-hidrologico\/\"><span style=\"font-weight: 400;\">historical averages<\/span><\/a><span style=\"font-weight: 400;\">. This affects its navigability and concerns agribusiness since a large part of grain crop harvests from Argentina, southern Brazil and Paraguay are exported via the ports of Santa Fe, in northeast Argentina.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The low water level, considered the most severe <\/span><a href=\"https:\/\/www.unl.edu.ar\/noticias\/news\/view\/el_paran%C3%A1_presenta_su_bajante_m%C3%A1s_importante_en_50_a%C3%B1os#.YJrm97VKjIU\"><span style=\"font-weight: 400;\">in 50 years<\/span><\/a><span style=\"font-weight: 400;\">, cost exporters <\/span><a href=\"https:\/\/www.bcr.com.ar\/es\/mercados\/investigacion-y-desarrollo\/informativo-semanal\/noticias-informativo-semanal\/la-bajante-mas\"><span style=\"font-weight: 400;\">US$244 million<\/span><\/a><span style=\"font-weight: 400;\"> in 2020 as vessels were unable to operate or load normally, according to the Rosario Stock Exchange. This has meant Argentine exporters are failing to capitalise on high global prices for agricultural commodities.\u00a0<\/span><\/p>\n<div class='cdo-shortcode--image'><iframe style=\"width: 100%; height: 550px;\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/6145420\/embed\" frameborder=\"0\" scrolling=\"no\" sandbox=\"allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation\"><\/iframe><\/p>\n<div style=\"width: 100%!; margin-top: 4px!important; text-align: right!important;\"><\/div>\n<p><\/div>\n<p><span style=\"font-weight: 400;\">There is no certainty as to whether this water scarcity is temporary or marks the beginning of a new cycle of low water, as was witnessed last century. Nor is there unanimity about the causes, although experts have variously pointed to deforestation, damming in southern Brazil and climate change.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To complicate the situation further, the reduced river flow coincides with <\/span><a href=\"http:\/\/stage.dialogochino.net\/es\/infraestructura-es\/37072\/\"><span style=\"font-weight: 400;\">the end of a concession<\/span><\/a><span style=\"font-weight: 400;\"> for dredging and signalling, processes necessary for its navigability. Belgian company Jan de Nul had the concession for 25 years and will now compete to retain it.\u00a0<\/span><\/p>\n<h2>Paran\u00e1: New river or historical cycle?<\/h2>\n<p><span style=\"font-weight: 400;\">The Paran\u00e1 is much more than its main channel. It is a river system with a vast network of secondary channels, valleys and floodplains that are modified by the pulses of floods and low flows typical of this ecosystem.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;It is a giant whose extensive basin covers 2.6 million square kilometres, as much as the surface area of continental Argentina,&#8221; said Carlos Ramonell, a geologist specialising in the evolution of the fluvial landscape at the Universidad Nacional del Litoral.\u00a0<\/span><\/p>\n<div class='block--pullout-stat block--pullout-stat--float cd-shortcode--factbox'>\n                <p class='block--pullout-stat__title'>17,000<\/p>\n                <div class='block--pullout-stat__content'>\n                    <br \/>\ncubic metres of water usually flow down the upper reaches of the Paran\u00e1 every second<br \/>\n\n                <\/div>\n            <\/div>\n<p><span style=\"font-weight: 400;\">Its characteristic brown colour is due to the sediment it carries from the rivers of northwestern Argentina, such as the Bermejo. In addition to transporting these solids, an impressive <\/span><a href=\"https:\/\/www.unl.edu.ar\/recorriendosantafe\/content\/uploads\/2009\/11\/ficha_25.pdf\"><span style=\"font-weight: 400;\">17,000 cubic metres<\/span><\/a><span style=\"font-weight: 400;\"> of water flow per second, mainly via the upper reaches of the basin located in Brazil, and also the Paraguay River.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It was this flow of rainwater from the upper Paran\u00e1 and the Paraguay that ceased in the southern hemisphere\u2019s spring of 2019 due to unusually low rainfall, Ramonell explained.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, Ramonell said that records for the 20th century show significant variation. While between 1930 and 1970 there was a period of &#8220;markedly&#8221; lower flow, from 1970 to 2000 they remained high.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Climate change, Ramonell says, &#8220;generates more doubt than certainty&#8221; about the reasons for the reduced levels.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;It is an exaggeration to link this drop to anthropogenic climate change. I think that this could displace other issues that do have a superlative impact on the river system, such as deforestation, canalisation and dams,&#8221; he added.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, Juan Borus, a researcher at the National Water Institute, says that the causes &#8220;are of a clearly climatic order&#8221;. The rainfall pattern began to alter in mid-2019 and periods of scarce precipitation have become more frequent ever since, he said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;The end of the drought and low water is not yet in sight. It is likely that the <\/span><i><span style=\"font-weight: 400;\">La Ni\u00f1a<\/span><\/i><span style=\"font-weight: 400;\"> [climate pattern] will return later and we know that this does not favour the production of near-normal rainfall in our region, let alone that the rainfall will be significant enough to produce a noticeable recovery,&#8221; Borus says.<\/span><\/p>\n<h2>Low water and trade in the Paran\u00e1<\/h2>\n<p><span style=\"font-weight: 400;\">The lower flow of water in the Paran\u00e1 affects navigation, makes port manoeuvres more difficult and reduces the loading capacity of large ships, translating into higher costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Gustavo Id\u00edgoras, president of the Argentine Oilseed Industry Chamber (Ciara), said he was &#8220;very concerned&#8221; about the low water level, adding; &#8220;it has negative effects on navigability, which causes delays, ships get stuck and there are stoppages&#8221;.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Id\u00edgoras said some 4,500 large ships enter and leave the Paran\u00e1 every year, &#8220;taking out&#8221; most of Argentina&#8217;s agricultural production. The low flow &#8220;puts the flow of exports at risk&#8221;, he said.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The energy and other sectors are also affected. 70% of the compressed natural gas imported by Argentina comes through the waterway. The automotive and steel industries also rely on it.\u00a0<\/span><\/p>\n<div class='block--pullout-stat block--pullout-stat--float cd-shortcode--factbox'>\n                <p class='block--pullout-stat__title'>70%<\/p>\n                <div class='block--pullout-stat__content'>\n                    <br \/>\nof the natural gas Argentina imports travels down the waterway<br \/>\n\n                <\/div>\n            <\/div>\n<p><span style=\"font-weight: 400;\">Ciara is aware that a new climate scenario could affect how it does business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;We see that there are cycles of drought returning with great force in South America. This is going to affect the region and works have to meet these needs while protecting environmental aspects&#8230; we stress the need for more in-depth and detailed studies,&#8221; Id\u00edgoras said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alfredo Ses\u00e9, an analyst at the Rosario Stock Exchange, said that the low flows &#8220;make it necessary to be more careful when loading, generating logistical cost overruns that are difficult to quantify&#8221;. The low flows also affect land-locked South American countries Paraguay and Bolivia, for whom the Paran\u00e1 is the main channel for commercial river transit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Commercial navigation is at its most intense during the harvest peak\u2019s of the southern hemisphere\u2019s autumn. Ships and barges require the greatest possible depths, as well as a generous channel width for safe navigation.<\/span><\/p>\n<h2>An export fluvial highway<\/h2>\n<p><span style=\"font-weight: 400;\">Amid these challenges, Argentina is discussing a new concession for the management of the waterway, the commercial name given to the Paran\u00e1. <\/span><span style=\"font-weight: 400;\">Of its total length from the source in Brazil to its mouth in the Rio de la Plata, 3,500km of the <\/span><span style=\"font-weight: 400;\">Paran\u00e1\u2019s<\/span><span style=\"font-weight: 400;\"> river are managed waterways. The concession covers a 1,300 km stretch<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-37079\" src=\"https:\/\/dialogue.earth\/content\/uploads\/2020\/08\/Paraguay-Parana_Waterway_EN.png\" alt=\"map showing the route of the Paran\u00e1-Paraguay waterway\" width=\"401\" height=\"399\" \/><\/p>\n<p><span style=\"font-weight: 400;\">This part consists of a port hub made up of some <\/span><a href=\"https:\/\/www.bcr.com.ar\/es\/mercados\/investigacion-y-desarrollo\/informativo-semanal\/noticias-informativo-semanal\/el-gran-0\"><span style=\"font-weight: 400;\">25 terminals<\/span><\/a><span style=\"font-weight: 400;\"> owned by large multinationals that moved some 82 million tonnes of grain crops, flour and oils in 2019, making it &#8220;the most important agro-exporting port node in the world&#8221;, according to estimates by the Rosario Stock Exchange (BCR).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Ses\u00e9, the waterway &#8220;plays a fundamental role in Argentina&#8217;s grain trade&#8221;, since 80% of grain crops, by-products and oil shipments travel along the waters of the Paran\u00e1. Paraguay and Bolivia also &#8220;bring their production down&#8221; to the major ports on barges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The concession for the dredging and maintenance of the waterway interests five large groups, among them China\u2019s Shanghai Dredging Company. Aside from current concessionaire Jan de Nul, the others are Belgium\u2019s Dredging International and the Dutch Boskalis and Van Oord.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Covid-19, the <a href=\"https:\/\/www.reuters.com\/world\/americas\/argentine-transport-minister-dies-traffic-accident-2021-04-24\/\">death<\/a> of Argentina&#8217;s transport minister and political disagreements over whether the waterway should be operated by a public or private company have led to Argentina extending the current concession until the end of July. However, there is no certainty over when and how the new tender will be launched. According to Id\u00edgoras, it won\u2019t happen until April next year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">New investments should ensure the deepening of some sections to allow larger vessels to enter and leave with full loads. &#8220;The depth with normal water is 34 feet and the depth in critical passages is 36 feet. It is projected to reach 42 feet deep in specific areas,&#8221; Ses\u00e9 said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Idigoras, having a &#8220;deeper waterway, with greater safety, depth, more roads and better signalling&#8221; will allow them to face the current climatic challenges that he believes &#8220;are here to stay&#8221;.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At less than half its historical average, the Paran\u00e1\u2019s low flow impedes exports as a concession to manage the waterway comes up for renewal<\/p>\n","protected":false},"author":50000004,"featured_media":50043522,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[50039903],"tags":[519,50040317,587,600,607],"hashtags":[],"country":[50000020],"class_list":["post-50043520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-water","tag-climate-impacts","tag-farming","tag-rivers","tag-trade","tag-water-scarcity","country-argentina"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Paran\u00e1\u2019s historic low levels test Argentina\u2019s agriculture trade | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"At less than half its historical average, the Paran\u00e1\u2019s low flow impedes exports as a concession to manage the waterway comes up 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