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Argentina's government has awarded a 25-year contract to deepen and maintain the Paraná River, its chief trade route, to a Belgian-Argentine consortium with historical ties to China, a decision that has put President Javier Milei in a difficult position amid rising US-China tensions in Latin America.

The contract, announced late Thursday, was won by Jan de Nul NV, a Belgian dredger, and its local partner Servimagnus SA. It requires about US$10 billion of spending to deepen and improve the river channel that runs from the River Plate estuary at Buenos Aires to the crop-export hub of Rosario and beyond, according to reports from Buenos Aires Times.

Coverage Comparison

Two reports from the Buenos Aires Times cover the story, focusing on the geopolitical dimension. Both highlight that the tender was overshadowed by accusations of Chinese influence, as Jan de Nul's partner, Servimagnus, has worked for years with China's state-run CCCC Shanghai Dredging Co.

The losing bidder, DEME Group NV, another Belgian dredger, had backing from US interests, including its US partner, Great Lakes Dredge & Dock Corp. DEME's consortium reportedly raised concerns about Chinese influence in the Jan de Nul-Servimagnus venture, but these were brought to the Trump administration to no avail.

The reports note that the tender became a flashpoint in broader US-China geopolitical tensions, especially as Milei has aligned with the Trump administration on other issues. The US president reportedly told Milei that Argentina's ties to China should be constrained to trade only, though this claim appears in only one of the reports.

Key Claims

  • Jan de Nul NV and Servimagnus SA won a 25-year contract to upgrade Argentina's chief trade route, the Paraná River shipping lane, as reported by both Buenos Aires Times articles.
  • The contract requires about US$10 billion of spending to deepen and improve the river channel, according to both reports.
  • The waterway runs from the River Plate estuary at Buenos Aires to the crop-export hub of Rosario and beyond, as stated in one report.
  • About 80 percent of Argentina's oilseed and grain exports move along the Paraná, and agriculture accounts for roughly 60 percent of foreign sales, according to one report.
  • DEME's US partner, Great Lakes Dredge & Dock Corp, said it's considering its options after losing the bid, with a company executive expressing disappointment, as reported by one article.

Perspectives

Argentine government and contract winners: The tender is part of Milei's push to modernise infrastructure through private investment. Jan de Nul and Servimagnus have denied any Chinese involvement in the new operations, despite their past collaboration with Chinese state companies.

US interests and losing bidders: DEME and its US partners view the award as a setback, with one executive saying it is “a bad sign toward American investors.” They had argued that the winning consortium's ties to China warranted exclusion, but their objections were not heeded.

Geopolitical observers: The episode underscores the growing US-China rivalry in Latin America, with the Paraná dredging contract becoming a symbolic test of where Argentina stands in that competition.

Context

Jan de Nul has dredged the Paraná River since the 1990s, and its previous concession expired in 2021. The Argentine government at the time failed to complete a replacement tender, leaving the company in place under temporary extensions that traders said contributed to inefficiencies and higher river tolls. The new tender was launched under Milei's administration, which barred state-run entities from participating in a move widely seen as aimed at excluding China.

Participants have until late next week to lodge challenges to the award, according to reports.