Argentina is set to undertake a significant economic shift with the privatization of Belgrano Cargas, marking a pivotal moment in President Javier Milei’s administration.
This decision represents the first privatization announcement since Milei took office and involves one of the six companies listed under the privatization annex of the Ley Bases.
Belgrano Cargas y Logística SA manages the Belgrano, San Martín, and Urquiza rail lines, which span 7,600 kilometers and affect 16 provinces.
According to a statement from the Office of the President (OPRA), these services will be concessioned to private entities. However, the rail tracks and land will remain under national ownership.
The government criticized Belgrano Loads for its substantial deficits and oversized workforce of 4,429 employees, alongside an inflated hierarchical structure.
Milei’s Administration Begins Privatization with Belgrano Cargas. (Photo Internet reproduction)
Presidential spokesperson Manuel Adorni emphasized that last year the state injected $112 million (R$627 million) into the company. He noted that this burden was shared by all Argentinians.
The announcement came during a Wednesday conference with Diego Chaher, head of the Agency for Public Enterprise Transformation. He outlined the privatization process’s scope and hinted at further railway privatizations in the coming months.
The infrastructure will be concessioned on an open-access basis. Concessionaires will be required to allow passage for all operators wishing to transport goods on these lines.
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