The government of President Javier Milei is preparing to launch the tender for Belgrano Cargas, the state-owned company that was included in the list of companies subject to privatization under the Bases Law in 2024. The imminence of the call for tenders comes after the libertarian administration presented the main guidelines of the plan and its deadlines to business leaders at the Argentina Week, to which NA had access, which took place in New York in mid-March. The government proposal aims for an 'open access' scheme, which allows for free use of the track without having rights over it, and for vertical disintegration, where the concession to operate the trains and the maintenance of the railway infrastructure do not necessarily go hand in hand. These parameters are causing concern among firms interested in participating in the tender, as they do not align with the international criteria governing the matter, as Argentina News Agency (NA) was able to find out. In this sense, the Open Access model implies that any company can use the tracks even without having been awarded the concession, which does not apply for cargo services anywhere else in the world. Once the process is opened, there will be 90 days to submit bids. Under the same scheme, after the deadline closes, there will be a month to evaluate the proposals and another 30 days to sign the contract, which would be in the middle of the year. In Europe, it is only permitted for passenger transport with the state's participation in subsidizing the track. Regarding the disintegration of railway management, the official initiative aims to open up the game and tender the tracks on one side, the rolling stock on another, and the workshops on another.
Argentina Government Prepares for Belgrano Cargas Privatization
President Javier Milei's government announces the upcoming tender for the privatization of the railway company Belgrano Cargas. The project, valued at $755 million, has faced criticism due to the proposed 'open access' model, which contradicts international standards.