The Government announced the privatization of Belgrano Cargas y Logística Sociedad Anónima, marking the first privatization of a railway company since President Milei took office last December. The measure aims to encourage competition in the railway sector and increase the volume of freight transported.
It was detailed that there will be two concessions for locomotives, two for wagons, and two for workshops, in addition to all tracks being granted in the private sector. The proposed model is an open-access infrastructure concession, which will prevent monopolistic behaviors.
According to presidential spokesperson Manuel Adorni, Belgrano Cargas in state hands is running at a loss and has an oversized employee roster. The State allocated 112 million dollars to this company last year. The privatization process involves the concession to the private sector of the three railway lines operated by the company, covering a total of 7600 kilometers.
The head of the Public Enterprise Transformation Agency, Diego Chaher, stated that this decision responds to the mandate of the head of state and that all state companies will open to private capital. Seven differentiated concession processes have been initiated in this privatization.
In summary, the privatization of Belgrano Cargas y Logística Sociedad Anónima is expected to improve competitiveness, transparency, and efficiency of the freight railway system in Argentina. With this measure, the State seeks to modernize and optimize the management of public enterprises for the benefit of freight transport in the country.
