Freight Services
Privatisation began with the granting of long-term concessions (30 years with an optional 10 year extension) to six companies for the operation of freight services (see Table 1). These companies were responsible for all operations and maintenance and for the implementation of the investment programme detailed in their bid. The fixed assets remained the property of the state and the operators had to pay for their use and to rent rolling stock. Freight tariffs were deregulated but were subject to state approval. The concessionaires were expected to hire as many FA employees as were required and redundancies were financed by the government with the help of the World Bank.
| Concessionaire | FA Division(s) | Gauge | Length, km | Takeover Date |
|---|---|---|---|---|
| Ferroexpreso Pampeano | Roca, Sarmiento, Mitre | broad | 5094 | 1 Nov. 1991 |
| Nuevo Central Argentino | Mitre | broad | 4900 | 23 Dec. 1992 |
| Ferrosur Roca | Roca | broad | 3145 | 11 Mar. 1993 |
| Buenos Aires al Pacifico – San Martín | San Martín | broad | 5690 | 26 Aug. 1993 |
| Mesopotámico General Urquiza | Urquiza | standard | 2704 | 22 Oct. 1993 |
| Belgrano Cargas | Belgrano | metre | 9860 | 16 Nov. 1999 |
Initially no bids were received for the Belgrano line, and in October 1993 the government created a new state-owned corporation to continue its operation and to undertake improvements likely to make it a more attractive commercial proposition for a private buyer. Privatisation followed six years later.
Read more about this topic: Railway Privatisation In Argentina
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