The government of Argentine President Javier Milei has launched the privatization process for the state-owned freight railway company Belgrano Cargas y Logística. Authorities have announced a national and international tender to award a 50-year concession for the Belgrano, San Martín, and Urquiza freight lines, according to the Buenos Aires Times.
The tender covers 7,594 kilometers of operational tracks across 16 provinces. Private operators will manage the infrastructure and train operations, while the state will retain regulatory, inspection, and oversight functions. According to Economy Minister Luis Caputo, the network connects 16 provinces to the country’s main ports, as well as to Brazil, Bolivia, Chile, Paraguay, and Uruguay.
The contracts will be valid for 50 years from the date of taking possession and will not provide for automatic renewal. Mandatory work must be completed within the first five years, while additional projects proposed by bidders will be considered when selecting the winner and may be implemented over a period of up to 15 years.
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The concession provides for an open-access model: various carriers will be able to use the tracks for a fee, and the concessionaire will be responsible for maintaining the infrastructure and managing traffic under transparent and non-discriminatory conditions. Bidders who invest at least $200 million in track restoration will be eligible for incentives under Argentina’s RIGI program for large-scale investments. Officials expect that the total investment in the three lines could reach about $1 billion.
Winners will not be determined solely by the amount paid to the state. The evaluation formula will take into account the proposed maximum track access tariffs and investment commitments, giving preference to lower tariffs and larger investments. Bidders will be able to submit bids for infrastructure only or also to purchase the rolling stock assigned to the lines. Proceeds from the sale of locomotives and railcars will be directed to a special fund to partially finance mandatory works.
Local media report that the tender terms prohibit the participation of Argentine state-owned companies, as well as companies directly or indirectly controlled by foreign governments. The media claim this restriction is aimed at Chinese state-owned companies; however, China is not specifically mentioned in the rules: the provision applies to all companies controlled by foreign states and their affiliated holding companies or subsidiaries.
