Hidrovias: Strengthening regional integration along a key fluvial corridor
Along the Paraguay-Paraná Waterway in South America, many of the barges and boats dotting this key fluvial system rely on technology from the 1950s.
The IDB’s $104 million A/B loan to Hidrovías do Brasil, S.A. is bringing state-of-the-art, low-carbon technology to enhance transport integration among Brazil, Paraguay, Argentina and Uruguay while increasing fuel efficiency and creating new jobs.
The IDB resources, together with co-loans from the IFC and Banco Santander, is helping to finance the purchase of a modern fleet system to transport 3.25 million metric tons per year of iron ore under a long-term take-or-pay transport agreement with a subsidiary of Vale, S.A.
The Hidrovias Project is achieving positive economic and environmental impact for the region:
- Implementing a modern commodity transportation fleet for by financing the construction of eight convoys of state-of-the-art push boats and barges
- Strengthening regional transportation integration across four Latin American countries
- Avoiding approximately 275,000 tons of carbon emissions over the life of the agreement with Vale through a fuel efficient fleet