Argentina tenders 50-year concessions for three major freight rail lines

The Argentine government has initiated a significant privatization effort by authorizing the national and international tender for a 50-year concession of three major freight rail lines: Belgrano, San Martín, and Urquiza. This move is part of a broader plan to privatize the state-owned company Belgrano Cargas y Logística (BCyL).

The concession covers 7,594 kilometers of tracks spanning 16 provinces, with crucial international connections to Brazil, Bolivia, Chile, Paraguay, and Uruguay. The tender process requires bids to be submitted by November 11. The concession includes not only the tracks but also adjacent properties, with an option for successful bidders to purchase the corresponding rolling stock for each line.

Future concessionaires will be obligated to undertake specific infrastructure works within the first five years, alongside other potential investments outlined in their bids. The privatization plan involves dismantling BCyL into three distinct business units: rolling stock, tracks and adjacent properties, and workshops. Following the award and finalization of contracts, the state-owned company is slated for dissolution and liquidation.

Economy Minister Luis Caputo defended the initiative, stating that the goal is to transform freight rail into a competitive engine for Argentine exports. He argued that for decades, the state has maintained a deteriorating system despite increasing taxpayer expenditure. This privatization is a key component of President Javier Milei's reform agenda, initiated in December 2023, aiming to shift capital contribution and business risk to the private sector to restore the infrastructure.