Five advantages for Uruguay if its strengthens its waterways, according to Astori
During the presentation of a study developed by CAF, Development Bank of Latin America, regarding waterways as transportations means, Enrique García, President of the Institution, stated that "beyond fluvial integration, waterways are a future model of productive transformation for Latin America"
CAF, Development Bank of Latin America, presented the Regional Program for the Development of the South American Waterways in a conference which included the participation of national and sub-national authorities of the countries in the region. The study states that waterways are an important factor for the economic and social development of the countries in the region, which face the challenge of using that potential. In this respect, the adaptation of public policies, improvement of navigability, construction of ports, and development of infrastructure and logistics were some of the subjects presented in the Conference.
Enrique García, Executive President of the Institution, stated, "During the past 15 years, we have become the main source if infrastructure financing in Latin America, and we have directly contributed to 65 physical integration projects that join the countries in different ways, addressing areas such as energy, transportation, and logistics. With respect to waterways, we estimate that the advances have not been enough and that is why we came up with a more active program, to make our dreams of a Latin American integration a reality"
In addition, García highlighted that "beyond fluvial integration, waterways are a model for the future for productive transformation, through which South America must change from a traditional to a dynamic model of comparative advantages to insert itself competitively in the global production and trade chains".
Danilo Astori, Minister of Economy and Finances, highlighted the need to use the natural advantages offered by the region for the development of waterways, thus promoting integration. Referring to the deficit in navigability and a lack of port infrastructure in terms of quality and quantity, he pointed out that "seventy percent of the region's territory is covered by navigable hydrographic basins, but they have infrastructure problems".
Astori added, "For this reason, there is much work to do to take advantage of renewable natural resources and transform them into competitive advantages. In the case of Uruguay, I see five great advantages in working in this area. In first place, the opportunity of opening multinational entrepreneurships regarding this subject. In second place, a significant improvement in competitiveness if we think, for example, about transportation costs. In third place, working on waterways gives us the possibility of promoting specific development poles in places where the waterways are located. In fourth place, I detect opportunities for the naval industry and, finally, improvements in the investment and development conditions of our societies conceived as a whole".
Víctor Rossi, Minister of Transportation and Public Works, said that the presentation of CAF's program came at "a very good time", He indicated that after many difficulties, "the values of the strategy to develop waterways in the region have been recognized".
At the same time, Rossi stated that there have been important advances in the waterways that make up the Uruguay and Paraná-Paraguay rivers, while at the same time, he indicated that the reality in this area is "full of development potential".
Enrique Iglesias, President of the Astur Foundation, was also present in the meeting. He expressed that "there is no economic development if there is no capacity to mobilize the resources in all types of infrastructure. We must invest 6 percent of GDP in infrastructure to be in tune with the challenges of the productive system and social mobility, but we are not reaching even 3 percent".
With respect to waterways, the economist stated that "it is enough to look at Europe and South East Asia to understand the importance of this gifts of nature, which can really boost economic growth and most specially, integration".
The objective of the program is to contribute to promote the development of South American waterways with a comprehensive vision and under the principles of cooperation between the public and private sectors, integration, complementarity, and care for the environment. The pillars that support the program are: navigability and ports, transportation and logistics, institutional framework and norms, and management models. In these areas, different subjects were addressed, which go from the construction and improvement of ports, access, and logistics, to institutional subjects dealing with entrepreneurial development, training, and management, all supported on environmental, social, and financial sustainability. The first stage of the plan includes the waterways of Paraguay/Paraná, Magdalena, Uruguay/Brazil and Uruguay River, while the second stage focuses on the waterways of the Amazon. Meta/Orinoco, and Napo (Manta/Manaos).