THE provincial governments of Mendoza, San Juan, and San Luis in Argentina have finalised a strategic infrastructure framework for a $US 4bn regional rail corridor to link central Argentina’s mining basins at San Juan and Mendoza, and the energy basin at Vaca Muerta, with Pacific ports in Chile.

Central to the Cuyo-Pacific Corridor project is the comprehensive rehabilitation of the 1676mm-gauge General San Martín (GSM) and Sarmiento networks. The proposal marks a shift in trans-Andean logistics by prioritising the Paso del Planchón - Vergara route over the historically significant but technically constrained Mendoza - Los Andes route, which was decommissioned in 1984.

Feasibility studies conducted by the regional governments indicate that the lower-altitude Planchón - Vergara alignment offers more favourable gradients for heavy-haul operations. It also =reduces the risk of closure due to snow accumulation compared with the Mendoza – Los Andes line, which reaches an elevation of 3200m at its highest point.

The project scope includes:

  • upgrading the existing GSM and Sarmiento infrastructure to accommodate 25-tonne axleloads and increased train lengths
  • construction of a new branch connecting the Neuquén Basin (Vaca Muerta) to the GSM main line via General Alvear, and
  • construction of high-capacity freight facilities and automated loading terminals in San Luis and Mendoza to facilitate the transfer of minerals and agricultural produce in bulk.

The proposed project is also designed to consolidate two distinct freight streams to achieve the economies of scale required for private investment in:

  • bulk mining: San Juan and Mendoza are currently developing major copper and gold projects including at Josemaría and Los Azules, which require high-capacity export routes to the Chilean ports of San Antonio and Valparaíso, and
  • hydrocarbon logistics: the proposed connection to the Vaca Muerta shale formation aims to provide a rail-based export route for petrochemicals and a supply line for fracking sand and industrial machinery arriving from Pacific ports.

Regulatory and funding framework

Project delivery is expected to utilise Argentina’s Major Investment Incentive Regime (Rigi). This legal framework provides 30-year tax and customs stability for projects exceeding $US 200m, and is designed to attract international Tier-1 rail contractors and rolling stock manufacturers. Tenders for preliminary engineering design of the Planchón - Vergara crossing of the Andes are expected to be issued by the end of this year.

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