Argentina is selling its vast and neglected railway 0 7

Investors looking to capitalize on the next phase of Javier Milei's market reforms are preparing to participate in the tender for the privatization of Argentina's freight railways, which are in a dire state. This is part of the president's plan to expand the export of agricultural and mining products.

The transport division of the mining and logistics conglomerate Grupo Mexico SAB, owned by billionaire Germán Larrea, plans to apply for the acquisition of the Belgrano Cargas network after meeting with representatives of Javier Milei, according to a source familiar with the situation. The source, who cannot be named due to the discussion of behind-the-scenes plans, stated that the investment amounts to at least $3 billion.

According to the soy export and processing association Ciara-Cec, GMexico Transportes may face competition from large trading companies that are working to form a consortium to participate in the tender. The group may include Bunge Global SA, Louis Dreyfus Co, and Cargill Inc, as well as the local company Aceitera General Deheza SA.

The first railway line in the country was built in 1857 by a private company. The first state railway was established 10 years later. In 1948, the country's railways — Ferrocarriles Argentinos — were nationalized. Upon nationalization, companies were formed: Ferrocarril General Bartolomé Mitre, Ferrocarril General Manuel Belgrano, Ferrocarril Domingo Faustino Sarmiento, Ferrocarril General Roca, Ferrocarril General San Martín, and Ferrocarril General Urquiza. When the profitability of transport declined, the process of privatizing the railways based on concessions began in 1990. Given the failures of their private management, including the 2012 railway disaster, in April 2015, the Argentine Senate approved a bill for another nationalization of the railways.

Argentina has six railway lines. Their length as of 1988 was 34,909 km (which reached even 47,000 km immediately after World War II). By 1993, the length of the lines had decreased to 34,200 km, and by 2010 to 31,400 km. There are mountain railways. The Trans-Andean Railway operated until 1984.