Argentine forestry industry logistical challenges

The forest industry in Northeast Argentina (NEA) and the Litoral region is being positioned as a major regional economic driver, employing nearly 100,000 people and managing millions of hectares of plantations and native forests. However, stakeholders have identified significant structural bottlenecks, including falling demand and high logistical costs.

To address these challenges, industry leaders are advocating for the reform of maritime and fluvial cabotage laws. During a seminar in Posadas, Misiones, representatives noted that producers in provinces such as Misiones and Corrientes are often forced to use expensive truck transport for bulky goods like wood and cellulose instead of utilizing the country’s river networks. The Asociación Forestal Argentina (AFoA) is proposing the repeal of a 1944 decree to modernize fluvial regulations, which proponents suggest could reduce annual freight costs by an estimated USD 355 million.

In Corrientes, officials are attempting to expand the sector’s scope by promoting wood construction as a key industrial development strategy. Antonio Barros Perkins, the provincial Subsecretary of Industry, noted that wood housing can offer cost savings of approximately 30% compared to traditional methods while providing better thermal performance. However, Perkins emphasized that the transition from exporting raw materials to local industrialization is currently hindered by high logistics costs. These burdens, driven by rising fuel prices, the state of rural roads, and distances between forests and processing plants, continue to impact the entire production chain and the regional economy.