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The Argentine government proposes to divide its railway network into nine concessions across three logistical corridors. The “open access” model generated skepticism from large investors, such as Grupo México, which demands radical changes in the rules to participate.
The transport infrastructure in Argentina is going through a decisive moment with the proposal of a new framework for the cargo sector. Unlike Brazil, which operates with centralized concessions, the Argentine government plans to divide its network into nine distinct fronts across three logistical corridors.
The objective is to reduce the hegemony of asphalt, which currently dominates 95% of goods transport in the country. However, the “open access” strategy generates uncertainties about efficiency, as studies indicate that fragmented models can require up to seven times more trains than integrated systems to move the same cargo.
The contrast with the experience of the Brazilian railway network
The discussion about railways in Argentina becomes clearer when compared to the Brazilian scenario. In Brazil, companies like VLI, Rumo, and MRS exclusively manage both the tracks and the wagons, which ensures predictability for large financial investments.
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Vicente Abate, president of the Brazilian Association of the Railway Industry (Abifer), reinforces the solidity of the format adopted in Brazilian territory:
“There is a well-established model of railway cargo transport in Brazil, called vertical, where the permanent way is maintained and operated by a concessionaire, which receives the concession from the Union for a certain period, renewable for an equal period.”
Abate considers that, although the horizontal model has not prospered in Brazil, it may find space on Argentine soil due to regional logistical factors. According to the executive:
“In Argentina, despite the divergences, the horizontal model can be applied due to specific characteristics of the network, such as smaller axle loads and shorter distances.”
Foreign capital imposes severe conditions in Argentina
Despite the Ministry of Deregulation’s intentions to promote competition, the project faces skepticism from large investors. Grupo México, the main interested party in injecting about US$3 billion into the reconstruction of Buenos Aires’ infrastructure, conditioned its entry on a complete reformulation of the rules.
The company’s CEO, Fernando López, was emphatic in rejecting the current tender design: “If there isn’t a radical change in how the tender is structured, we will not participate.”
For these large groups, the free access system hinders logistical coordination and dilutes the return on invested capital. Furthermore, the consortium of grain exporters — which holds 85% of the cargo flow of the state-owned Argentina — maintains a cautious stance, awaiting clearer regulatory norms.
The network diagnosis and the urgency of the plan
The need for reform is evidenced by the critical state of the network controlled by the state-owned Trenes Argentinos Cargas.
Currently, the country has:
- Total Network: 14 thousand kilometers in length.
- Operational Sections: Only 7.6 thousand kilometers (just over half).
- Road Dependence: Trucks transport almost all (95%) of national cargo.
- Main Products: Grains and minerals, essential for Argentine exports.
Federico Sturzenegger, Minister of Deregulation, believes that opening up the system is the way to lower costs. Along the same lines, Alejandro Núñez, president of the state railway company, states that the proposal could increase the system’s efficiency.
Risks of a fragmented operation in Argentina
The big question hanging over Argentina is whether the “Open Access” model will be able to ensure the necessary fluidity. The division between those who maintain the tracks and those who operate the train could increase coordination costs and create bottlenecks at terminals.
Thus, the success of the proposal will depend on a regulatory framework that resolves traffic conflicts between different operators.
Without this security, the plan risks not attracting the necessary resources to modernize a fleet and signaling system that currently prevent the country from competing on equal terms in the global logistics market.
With information from the website Transporte Moderno and CNN Brasil
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