THE Argentinian government has announced plans to privatise state-owned rail freight company Belgrano Freight and Logistics as part of a broader restructuring of the country’s rail freight sector. The move, confirmed through official decrees published in late July, outlines a transition towards an open-access model intended to increase competition and efficiency.
Under the plan, the government will implement a two-stage process managed by the Ministry of Economy, with a target completion date of July 2026.
The first stage involves the auction of state-owned rolling stock - locomotives, wagons and related equipment - with proceeds to be held in a dedicated account by the central bank and earmarked for future rail investment. The second stage will see the award of a concession to operate the network, following an infrastructure and maintenance facility assessment to be conducted this year. While the new operator will manage the network infrastructure, ownership of track and land will remain with the state.
Belgrano Freight and Logistics, trading as Argentinean Trains Freight, has a complex history. Originally established in 1999 as a cooperative with strong union involvement to operate the metre-gauge Belgrano Railway, it came under private Argentinian and Chinese management in 2006. In 2013, the government renationalised the company, also integrating the 1435mm-gauge Urquiza network connecting Buenos Aires with Entre Ríos, Corrientes and Paraguay, and the 1676mm-gauge San Martín lines, connecting Buenos Aires with the west of the country, increasing the network to approximately 9500km.
Freight traffic has grown significantly under state control, rising from 4.1 million tonnes in 2013 to 7.4 million tonnes in 2024, with a peak of 8.4 million in 2022. The fleet includes 107 modern Chinese-built locomotives comprising 40 1000mm-gauge and 67 1676mm-gauge locomotives delivered between 2016 and 2017, as well as a large number of American-built locomotives dating from the 1950s to the 1990s. Thousands of new wagons have been procured and major sections of the network renovated, although parts remain out of service.
Concessions extended
In parallel with the privatisation of Belgrano Freight and Logistics, the government has confirmed an extension of existing private freight concessions. The contract for Nuevo Central Argentino (NCA), which operates the 1676mm-gauge Mitre network north of Buenos Aires, will now run until December 2032, with agreed investments including enhanced access to ports near Rosario.
The government has also invited Ferrosur Roca and Ferroexpreso Pampeano - two other private operators - to begin negotiations for similar concession extensions.
