Resource information
The Paraguay-Parana rivers waterway
system (referred to in the text as the Hidrovia, or HPP) is
potentially the greatest axis for freight movement in the
sub-region and a possible integration mechanism for the
Southern Common Market (MERCOSUR) countries. However, 90
percent of freight in the sub-region is moved by road
transport, a significantly inefficient mode of transport in
terms of fuel consumption, space use and greenhouse gas
(GHG) emissions. For over 15 years the Southern cone
countries have attempted to coordinate their regulations and
policies to improve the navigability of the HPP so that it
can reach its full potential. These efforts have been marred
by failures and disputes that have resulted in no concrete
actions. Given the apparently limited investment needed to
make the HPP the principal low-cost, low-impact freight
transport system in the sub-region, it is worthwhile to
investigate why the HPP has been unable to fulfill its
promise. This report attempts to determine why the Hidrovia,
one of most significant watercourses in South America, is
underutilized. This study analyzes the HPPs role in freight
movement and trade in the subregion. It further looks at the
technical, economic and environmental feasibility of the
improvements and defines what will be required to implement
improvements. In the analysis of environmental impacts, the
GHG emissions per mode of transport, particularly fluvial
transport, are estimated in order to define the HPP's
overall climate change impact. Next, it describes the
institutional context and assesses the institutional
arrangements in each country and the coordination efforts
that have been attempted. Finally, it outlines several areas
of intervention that the World Bank could explore to
collaborate with this endeavor.
