RIO DE JANEIRO, BRAZIL – The Federal University of Rio Grande do Sul, in the city of Porto Alegre, hosted the celebration of the 60th anniversary of the relaunch of navigation on the Merín Lagoon waterway. “It is the first time in a long time that we are experiencing a true act of integration,” was heard in one of the halls of the renowned university in southern Brazil.
On December 8, 1961, President Eduardo Víctor Haedo visited Brazil along with the Ministers of Foreign Affairs and Transportation and Public Works, which indicated the purpose of the visit.
In a challenging international and regional context, with growing geopolitical tension, a joint commission was set up to study problems related to the navigation of the Merín Lagoon and its hydrographic system. Two years later, in 1963, with the firm support of the United Nations and FAO, the Brazilian-Uruguayan Joint Commission for the development of the Merín Lagoon basin was set up.
Sixty years after this milestone, the political will of both governments, coupled with a strong private initiative, aims to advance in relaunching navigation on this waterway.
First, the dredging of the San Gonzalo channel and then the construction of the Tacuarí Terminal port are key to consolidate the waterway. In short, it would link Cerro Largo, and therefore the east of Uruguay, with the Atlantic Ocean through Rio Grande do Sul without the need to incur in land freights that make productions more expensive, unfeasible in many cases.
CONNECTIVITY AND COSTS
Senator Sergio Botana placed particular emphasis on the fact that a project of these kind will not compete with cargo leaving through Nueva Palmira or Montevideo, but will instead add production that is currently not done in the east and northeast of the country due to the high logistic costs. “It improves the value of the land, increases production, generates employment and there is more social integration,” the nationalist senator said.
“Tariff barriers will tend to disappear and the way to protect our production and industry is by lowering costs,” Botana said, adding that “we must develop the institutional framework between countries, so that production does not rely on the circumstantial decisions of governments.”
Undersecretary of Transportation and Public Works Juan José Olaizola elaborated on this concept. “We estimate that the economic feasibility study of Brazilian company DTA may be ready by the end of January or early February 2022, and once that is done, Brazil will proceed with the bidding process for the dredging work.”
This project is part of a broader initiative for the development of a less connected region, as is the case of the east and northeast of the country. “The bidding process for Route 6 to be called before the end of the year and the La Charqueada bridge that will start soon are part of this initiative,” Olaizola said.
PRODUCTIVE SECTOR
According to the chairman for Uruguay of the Laguna Merín Joint Commission Gerardo Acosta, there is an involvement and commitment from all levels of society from both countries, be it political, diplomatic, technical and private.
“The commission is working on the nautical chart for the subsequent navigation in the Merín Lagoon,” he added. With respect to dredging, Gerardo Acosta assured that 6 or 7 kilometers are estimated, in a project that could cost some US$5 million. By achieving these advances, it would be possible to know how, where and why the 350,000 hectares of the Merín Lagoon may be navigated.
ACA chairman Alfredo Lago said that it would be “another way to export, not only for the Brazilian market but also to use the port of Rio Grande to travel beyond the region,” adding that “if the competitiveness of the rice sector improves, there may be an increase in the planted area.” In addition to this improvement in competitiveness, the availability of agricultural inputs at lower cost from Rio Grande do Sul should be considered, a key factor for the cultivation of the cereal.
PRIVATE PLAYERS
Director of Fadisol and head of the Tacuarí Terminal project Carlos Foderé said that it was a historic day, because “after so many years supporting this idea we have taken a few steps forward and there will be definitions in the short term,” he assured. As Ambassador Valles said, Foderé was optimistic about starting works in 2022.
Brazilian company DTA, represented personally at the event by its president João Acácio Gomes de Oliveira Neto, is advancing feasibility studies for the government to call for bids in 2022. Much of this work was presented to the audience.
PRIORITY FOR BRAZIL
According to the Brazilian officials present, including federal and state representatives and major private interest groups, dredging to get the waterway operational again has been declared a priority by the state of Rio Grande do Sul.
“Let’s not be poor by fighting among ourselves. Let’s leave our differences to soccer. Let’s stand together,” were comments repeatedly echoed at the event held in Porto Alegre. “Rio Grande do Sul is waiting for Uruguay with open arms,” said the Brazil’s officials.
Sixty years later, with a marked political commitment from both governments and the private sector, the waterway will once again become a reality. There is consensus that the project is increasingly closer. A win-win situation: with optimism, with recognition of the rich common history, with a sense of work and reality, but above all with a great strategic outlook for the future, this was the most frequently heard statement among the Uruguayan and Brazilian participants.
The completion of these works would have a great impact on the eastern and northeastern departments of the country, directly in Cerro Largo, Treinta y Tres and Rocha, joining a good part of Rivera, Lavalleja and Maldonado.
IMPACT ON EASTERN AND NORTHEASTERN DEPARTMENTS
Cerro Largo mayor José Yurramendi said that “we still have no idea of the dimension of this impact, because all of the productive area could be competitive. This has repercussions on road infrastructure, on education and promotes development and employment.”
Furthermore, the concept went one step further than the productive aspect: “the opportunities for individuals living in these territories are very important; if the primary sector grows, employment and wage capacity improve, and therefore society improves.”
Rocha mayor Alejo Umpiérrez said that “cost reduction is imperative for national production and there are sectors with well-founded expectations in this regard, such as rice and forestry.” In addition, Umpiérrez celebrated that with this project “Brazil gains in port logistics and Uruguay gains in competitiveness. The Laguna Merín and Laguna de los Patos basin represent a productive community that must have its own outlet for its production.”
General Director of Economic Development of the Municipality of Treinta y Tres Luisa Rodríguez said that it would have “a tremendous impact on the department’s development, starting with the productive sector and spreading to the social and cultural sectors. It will be a before and after.” In addition, Rodríguez highlighted and recalled the many generations behind this project and “now we can see a light at the end of the tunnel.”
There is political will and much optimism for the work to begin.
All participants, particularly the Uruguayan delegation, were unanimous in their gratitude to Uruguayan ambassador to Brazil Guillermo Valles, not only for the organization of this particular event, but also for the progress made by the two governments in productive synergies.
With respect to the Brazilian government, a presidential decree has been approved for the call for bids for dredging, and the renewal of the environmental permit is pending. “It is an existing natural channel. There is no excavation required, it is simply a matter of removing sands that, due to tides, winds and lack of river traffic, have accumulated since the last dredging in 2001. This work has no great environmental impact,” Ambassador Valles said, adding that “this is the first of the outsourcing of waterways to the private sector in Brazil, given that it is fully involved in the development and maintenance of highways, ports and airports in the country.”
Valles said that the dredging “is a very small work for Brazil but of great symbolism.” In the east of the country there are some 900,000 fertile hectares for potential productive use, including agricultural, forestry and mining operations. Currently, moving production from this region to the port of Montevideo requires an average of 450 kilometers by road, while the waterway would be less costly and would take 220 kilometers to reach the deep-water port of Rio Grande do Sul.
“I am optimistic that works will begin in 2022. This stage began on February 3 with the meeting between Presidents Lacalle Pou and Bolsonaro. There is political will and the private sectors of Brazil and Uruguay are behind this project. It makes production viable and promotes economic and social development,” Valles said.
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