Railway Privatisation in Argentina - Freight Services

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.

Table 1 Privatisation of Freight Services in Argentina
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.

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