Jan De Nul Wins $10 Billion Paraná River Dredging Contract
Belgian dredging company Jan De Nul Group has secured a landmark 25-year concession contract from the Argentine government to dredge, deepen, and maintain the Paraná River, one of South America’s most critical economic waterways. The contract, estimated to be worth up to $10 billion (€8.6 billion), was awarded after a fiercely contested tender that became entangled in broader US-China geopolitical tensions in Latin America.
The formal award was announced by Argentina’s Ministry of Economy on Thursday and is subject to a seven-day objection period, according to Belga News Agency.
A Vital Economic Artery
The Paraná River is the second-longest river in South America, running approximately 4,880 kilometers through Brazil, Paraguay, and Argentina. Its main navigable channel — the Vía Navegable Troncal (VNT) — stretches 1,635 kilometers from the Confluencia point to the Río de la Plata estuary.
According to the Argentine Ministry of Economy, approximately 80% of Argentina’s exports pass through the Paraná, making it the country’s primary trade corridor. The waterway is dominated by agricultural shipments — soy meal, grains, corn, and oilseeds — which account for roughly 60% of Argentina’s foreign sales. The port of Rosario, located on the Paraná, was the world’s largest single supplier of oilseeds and grains in 2025, as gCaptain/Bloomberg reported.
The waterway also serves Brazil, Bolivia, Paraguay, and Uruguay, cementing its status as one of the continent’s most important economic arteries.
The Scope of the Project
The contract requires Jan De Nul and its Argentine partner Servimagnus SA to deepen the shipping lane to Rosario from 36 feet to 40 feet, with provisions for studying further deepening to 44 feet. Beyond dredging, the scope includes installing advanced buoys and navigation technology, environmental management, monitoring, security of vessel traffic, and the right to collect tolls on passing ships.
Both bidders — Jan De Nul and fellow Belgian company DEME Group NV — submitted identical economic offers of $3.80 per net registered ton, a reduction of $0.50 from the current toll, according to Infobae/EFE. Jan De Nul’s consortium received a technical score of 66.2 points compared to DEME’s 42.14 points, securing its victory.
A Bitter Battle Between Belgian Rivals
The tender pitted Belgium’s two dredging giants against each other in what became an increasingly acrimonious contest. Jan De Nul has maintained the Paraná since the 1990s, first in partnership with Argentine firm Emepa and then under temporary contracts after the previous concession expired in 2021.
DEME accused the Argentine government of tailoring the tender specifications to favor Jan De Nul. The first tender, launched in November 2024 under President Javier Milei’s administration, was declared void in February 2025 after only DEME submitted a bid. The government accused DEME of attempting to sabotage the process, which the company denied.
As VRT NWS reported, the two Belgian companies were the last contenders standing, with a Brazilian bid from DTA Engenharia deemed inadmissible.
Geopolitical Flashpoint: The China Question
The contract became a proxy for US-China competition in South America. US House Foreign Affairs Committee Chairman Brian Mast sent a letter to Secretary of State Marco Rubio warning of “Chinese malign influence” in Jan De Nul’s bid, alleging that the company’s Argentine partner Servimagnus had “deep and ongoing” ties with Chinese state-owned enterprises, specifically CCCC Shanghai Dredging Co.
Jan De Nul described the allegations as “absolutely false and malicious,” according to Belga News Agency. Servimagnus acknowledged past collaboration with CCCC Shanghai Dredging but stated it currently has no ties with that company or any other Chinese state-owned enterprise. Jan De Nul further pointed out that DEME itself included a Chinese supplier in its bid — for security cameras.
The controversy highlights the delicate balancing act facing Argentine President Javier Milei, a loyal ally of US President Donald Trump, who nonetheless awarded the contract to a consortium accused by Washington of Chinese ties.
Economic Implications and Forward Look
For Jan De Nul, this is a transformative contract that secures decades of revenue. The company posted a record turnover of €4.24 billion in 2025, with a net profit of €458 million and an order book of €9.55 billion, as Flows.be reported. Dredging accounts for approximately 75% of its turnover.
For Argentina, the deepening of the Paraná will allow larger vessels to load more cargo upriver at Rosario, reducing the need for costly “top-offs” at Atlantic ports. Combined with lower export tariffs, this is expected to boost Argentina’s agricultural competitiveness against Brazil. The government projects cost savings of approximately 15%.
However, questions remain. Will any objections be filed during the seven-day period? How will the US administration respond to the contract being awarded despite its warnings? And can the deepened channel deliver the promised economic benefits?
What is certain is that the Paraná River — a waterway that has shaped South America’s economic geography for centuries — is about to be reshaped once again, with a Belgian company at the helm.