The decision was justified on the basis that the company that manages the pier had failed to implement an agreed works plan, thereby prejudicing the security of the quay. This effective embargo is particularly alarming given that it came just prior to the start of the grain harvest in Paraguay, during which around 3 Mtpa of grain are habitually transshipped at Nueva Palmira. The loss of the use of the berth at La Paloma directly affects around 1.5 Mt of export grain, which accounts for half (100) of Paraguay's monthly barge traffic. Nueva Palmira generates annual volumes of 11 Mt, with Paraguay accounting for 45% of that.

The berth at La Paloma ensured that loading operations at Nueva Palmira could be organised rationally. Now, Uruguay's National Ports Authority (ANP) is looking for alternative moorings. Arroyo del Sauce, located some 20 km from Nueva Palmira on the Paraná Bravo River, is one possibility, but has moorings for only 32 barges. Another possibility is that inbound barge convoys not finding space at Nueva Palmira could continue to the port of Fray Bentos. However, even though the ANP says this would add either zero or minimal extra cost to the vessels, it would mean a higher cost per hour and also involve a greater transport distance.

According to Juan Carlos Muñoz, vice president of the River and Maritime Shippers Organisation of Paraguay (CAFYM), this leaves Paraguay with few other alternatives, although he insists that barges will continue to make use of Uruguayan infrastructure whenever possible. He nevertheless pointed out that Uruguay needs to strengthen its existing port infrastructure.

He added that Argentinian terminals on the Paraná River are already loading consignments generated by the local harvest, which is creating a long waiting time for Paraguayan barges as it is. He believes that, given the loss of the berth at La Paloma, this will cause congestion at other ports. Previously, Argentina had demanded a decrease in length of barge trains using the waterway complex, which increased logistics costs by US$7/t, while the new measure will increase export costs by around 30%.

• Last month, PROVINCIAS UNIDAS was the first container vessel to make use of the Paysandú-Montevideo inland waterway system, undertaking the journey along the Uruguay River. It arrived at the southern cabotage quay, transporting containerised timber. It is scheduled to undertake this trip once a week. The vessel, which has a capacity of 270 TEU, requires a draft of 5.10m. The port of Paysandú has a Liebherr mobile harbour crane, which was acquired in July 2013.