Argentina Awards $10B Parana River Dredging Deal to China-Linked Venture
KKR•Argentina’s Milei administration awarded a $10 billion, 25-year contract to upgrade and maintain the Parana River shipping lane to Jan de Nul-Servimagnus, bypassing DEME Group and US partner Great Lakes Dredge & Dock. Servimagnus’s past projects with China’s CCCC Shanghai Dredging have heightened US-China geopolitical tensions in the region.
1. Contract Award Details
Milei’s administration granted a 25-year, $10 billion contract to Jan de Nul NV and partner Servimagnus SA to deepen and maintain the Parana River shipping lane, bypassing rival DEME Group NV and its US affiliate Great Lakes Dredge & Dock Corp.
2. Partner’s China Connections Spark Tensions
Servimagnus has collaborated for over two decades with CCCC Shanghai Dredging Co. on River Plate estuary and Atlantic coast projects, raising concerns in Washington about potential Chinese involvement despite assurances to the contrary.
3. US Stakeholder Response and Next Steps
Great Lakes Dredge & Dock expressed disappointment and is evaluating legal challenges, with Milei officials allowing protests until next week; outcome could influence US investment sentiment in Argentina’s infrastructure sector.
