Argentina will undertake a significant economic change with the privatization of Belgrano Cargas, marking a key moment in the administration of President Javier Milei.
This decision represents the first announcement of privatization since Milei took office and involves one of the six companies listed in the privatization annex of Ley Bases.
Belgrano Cargas y Logística SA manages the Belgrano, San Martín and Urquiza railway lines, which stretch over 7,600 kilometers and touch 16 provinces.
According to an announcement by the Office of the President (OPRA), these services will be granted by concession to private entities. However, the railways and land will remain nationally owned.
The government criticized Belgrano Cargas for its significant deficits and redundant workforce of 4,429 employees, along with a bloated hierarchical structure.
Presidential spokesman Manuel Adorni pointed out that last year the state injected 112 million dollars (R$627 million) into the company. He noted that this burden was shared by all Argentines.
The announcement came during a conference on Wednesday with Diego Chaher, head of the Agency for the Transformation of Public Enterprises. He outlined the scope of the privatization process and hinted at further railway privatizations in the coming months.
The infrastructure will be licensed on an open access basis. Concessionaires will be required to grant passage to all operators wishing to transport goods on these lines.
