The Argentine government, led by President Javier Milei, has initiated the privatization of Belgrano Cargas y Logística S.A., the state-owned freight railway operator.
This decision, announced on February 8, 2025, marks a major policy shift aimed at reducing state involvement in critical sectors and promoting private investment.
Belgrano Cargas manages 7,600 kilometers of rail lines across 17 provinces, serving as a vital link for transporting agricultural products and industrial goods. The company has long struggled with inefficiencies.
In 2022, it transported 8.4 million tonnes of cargo but relied on $112 million in state subsidies to cover deficits. Critics have pointed to its bloated workforce and management structure as key challenges.
The privatization plan will transfer operations—such as locomotives, railcars, and workshops—to private entities. However, the state will retain ownership of rail tracks and land.
This “open-access” model aims to foster competition by allowing multiple operators to use shared infrastructure. The government argues that privatization will modernize the network, increase efficiency, and triple cargo volumes.
Currently, only 6% of Argentina’s cargo moves by rail, compared to 94% by road—a costly imbalance for exporters. However, concerns remain about potential job losses and reduced service in less profitable areas.
In short, this move follows a broader economic reform agenda under Milei’s administration, including the passage of a law in 2024 enabling privatizations.
Investors and policymakers are closely watching this process as a test case for Argentina’s ability to attract private capital. It also serves as a measure of the country’s efforts to address longstanding inefficiencies in its logistics sector.
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