The Javier Milei government has started the process of privatizing the cargo train company Trenes Argentinos Cargas, also known as Belgrano Cargas y Logística, Presidential Spokesperson Manuel Adorni announced on Wednesday afternoon. This is the first train company the government is set to turn over to private capital.
The company operates 7,600 kilometers of tracks and will now be open to be run by private concession. The tracks themselves and the land they are on will remain property of the Argentine state, the government confirmed.
The privatization process will be led by Diego Chaher, who leads the Agency for the Transformation of Public Companies, an organism within the Economy Ministry.
The Presidential Press Office also announced the decision, describing the company as “obscenely unprofitable with an oversize staff of 4,429 people, as well as an inflated management structure that does not align with its functions.” It also stated that the company had received US$112 million in taxpayer money in the previous year. The aim of the privatization is to make the company more efficient, the statement added.
Belgrano Cargas is an important train line, especially for the Argentine agricultural industry. It transported 8.4 million tonnes of cargo in 2022, according to official numbers. The government’s statement also claimed that the company had transported the same tonnage for 15 years. However, figures from the previous government and the Rosario Stock Exchange show that the volume transported has risen steadily from a low of 2.5 million tonnes in 2015.
Work carried out by the company also included constructing rail infrastructure, bridges, and sewers.
“As President Javier Milei has indicated, this government will privatize everything that can be privatized […] The state as a company is over,” the announcement concluded.