THE Argentinian government’s rail freight privatisation programme has suffered a major setback with the withdrawal of Grupo México, one of the few potential bidders from outside Argentina. This has raised fresh questions over the planned award of operating concessions and the sale of state-owned rolling stock to new operators.
The Milei administration is seeking to privatise Belgrano Freight and Logistics, which as Argentinian Trains Freight (TAC) operates the Belgrano, San Martín and Urquiza networks totalling nearly 8000km. It forms part of a wider programme to reduce state involvement and attract private investment.
Grupo México’s rail operations include Ferromex and Ferrosur, two of three major freight concessions in Mexico. The company had proposed to invest up to $US 3bn over five years to modernise Argentina’s rail freight network.
However, according to local media reports, the Mexican company has now withdrawn after expressing its concerns over the proposed concession structure and what it viewed as preferential treatment of bidders from within Argentina.
The government’s privatisation model has also generated debate as infrastructure renewals on the Belgrano, San Martín and Urquiza networks will continue to be funded largely through public resources after operations are transferred to private concessionaires. Under government Decree 282/2026, the proceeds of selling the TAC locomotive and wagon fleet will be placed into a trust fund to finance this work. The government aims to complete TAC privatisation before the end of this year.
Concession extended
Separately, the government has extended one of the three freight concessions currently in private hands, the 5100km Ferroexpreso Pampeano (Fepsa) network serving the provinces of Buenos Aires, La Pampa and Santa Fe which is key to grain exports via the ports of Bahía Blanca and Rosario.
The concession has been held by Techint since the former Argentinian Railways was privatised in 1991, latterly operated under an agreement which expired on April 30. According to local media reports, the government opted against immediately transferring operations to TAC, choosing instead to retain the current operator while a new concession framework is prepared.
The decision comes amid tensions between the Milei administration and Techint president, Paolo Rocca, over industrial policy and tariffs, and the extension is seen as a pragmatic move to avoid disruption to freight flows.
“The objective is to guarantee continuity of service while the new bidding process is prepared,” the government says. The extension also requires Fepsa to continue to meet its infrastructure maintenance and operational investment obligations during the interim period.
The June issue of IRJ will contain an in-depth feature by Andrew Young on freight privatisation in Argentina.
