By Jonathan Gilbert June 5, 2026 (Bloomberg) - Belgian dredging company Jan de Nul NV, along with its local partner Servimagnus SA, has secured a 25-year contract from the Argentine government to upgrade the cou...
By Jonathan Gilbert
June 5, 2026 (Bloomberg) - Belgian dredging company Jan de Nul NV, along with its local partner Servimagnus SA, has secured a 25-year contract from the Argentine government to upgrade the country's main trade route. This award comes amidst concerns over potential Chinese influence.
Jan de Nul has been working on dredging the Parana River shipping lane since the 1990s and outperformed Belgian competitor DEME Group NV for this contract. The Parana River connects the River Plate estuary near Buenos Aires to the agricultural hub of Rosario, which was the world’s leading supplier of oilseeds and grains last year.
This bidding process became a focal point in the growing geopolitical tensions between the US and China in Latin America, especially as Argentine President Javier Milei has allied with the Trump administration on various issues. What initially seemed like a simple competition between two Belgian companies escalated into a narrative where DEME’s American partners accused Jan de Nul's consortium of having ties to China.
Jan de Nul and Servimagnus have consistently rejected these accusations of Chinese backing, which were presented to the Trump administration with no results.
To fulfill this contract, which is part of Milei's aim to modernize infrastructure through private funding, around $10 billion will be required to enhance and deepen the river channel.
The Parana River is essential for Argentina’s economy, as approximately 80% of the country’s oilseed and grain exports pass through it. Agriculture, which accounts for about 60% of Argentina's foreign sales, is still the dominant export sector, even with the increasing importance of oil.
This contract has been in development for several years. Jan de Nul's previous agreement ended in 2021, but the government at that time failed to initiate a new tender. The company continued under temporary extensions, which traders claimed led to inefficiencies and raised river tolls.
Last year, Milei’s administration started a new auction to expand the shipping lane, but this was halted due to claims of favoritism towards Jan de Nul.
A key aspect of the contract involves deepening the shipping lane to Rosario from 36 feet to 40 feet, with options to study the possibility of reaching 44 feet.
This upgrade is vital for enhancing trade in a region where China has been gaining influence, as the US, under President Trump, has renewed its interest and found a partner in Milei. The competition was intensified as DEME, supported by American investors like KKR & Co., highlighted Servimagnus’ historical connections with China.
Recent droughts have revealed vulnerabilities in the waterway, forcing mariners to navigate through narrower passages and ever-changing depth conditions, leading to increased costs, shipment delays, and occasional vessel stranding.
The planned expansion aims to boost the competitiveness of Argentina’s crop sector by allowing more soy meal—the country’s biggest export—to be loaded further upstream. This could help diminish the need for costly loading at Atlantic ports before ships head to international markets.
Milei’s government is counting on the improved waterway, coupled with reduced export tariffs, to encourage agricultural production. While Argentina remains a major agricultural player, producers are facing challenges due to logistical constraints and taxes which have made them less competitive compared to Brazil, where agricultural output has kept growing for many years.