Argentina under the leadership of President Javier Milei’s government has begun the process of privatising state-owned freight railway company Belgrano Cargas y Logística by opening a tender for private operators to receive 50-year concessions covering its Belgrano, San Martín and Urquiza freight rail lines. The Belgrano Cargas concession process covers 7,594 kilometres of operational track spread across 16 provinces.
The tender includes mandatory investment requirements and provides eligibility for benefits under the Régimen de Incentivo para Grandes Inversiones (RIGI), the Milei administration’s incentive regime for major investments. Under the proposed structure, private operators will be responsible for managing infrastructure and traffic, while the state will continue to perform regulatory and oversight duties.
Argentina’s Finance Minister Luis Caputo announced the plan on X, stating that the government would conduct a national and international public tender to concession the three lines for half a century. “Belgrano Cargas’ privatisation is advancing to unlock its value,” wrote the minister, adding that the network connects 16 provinces with the country’s main ports and with Brazil, Bolivia, Chile, Paraguay and Uruguay.
Tender Conditions and Investment Requirements
Contracts will remain in force for 50 years from the date of possession, with no provision for a general extension. Mandatory works are required to be completed during the first five years. Optional works proposed by bidders will also be considered during the award process and may be implemented over a period of up to 15 years.
Caputo defended private-sector participation, saying decades of state administration had not delivered results despite increasing costs to taxpayers. He said that since 1970, agricultural output, which represents the service’s main source of demand, has multiplied sixfold, while Belgrano Cargas currently carries less freight than it did at that time. He presented this as evidence that incentives and management, rather than demand, were the central issue behind the service’s performance.
Open Access Model and Concession Award Formula
Milei’s government has also proposed an ‘Open Access’ model that would allow train tracks to be used even before formal possession, alongside vertical disintegration. Under this arrangement, leases covering train operations and infrastructure maintenance would not necessarily be held by the same companies. The Belgrano Cargas concession will preserve “open access”, allowing multiple operators to use the tracks by paying a toll.
The concessionaire will remain responsible for infrastructure upkeep and traffic management under transparent, non-discriminatory terms, while the state will retain regulatory, inspection and oversight functions. Bidders that invest at least US$200 million in track renewal will qualify for RIGI benefits. Officials say the process could mobilise around US$1 billion across the three lines.
The Belgrano Cargas concession winners will not be determined solely by the payments offered to the state. Instead, the award formula will weigh proposed toll caps against investment commitments, giving preference to bidders offering lower tolls and higher investment. Interested parties may bid only for infrastructure or choose to purchase the rolling stock assigned to each line.
Revenue from the sale and auction of locomotives and wagons will be placed in a dedicated trust to partially fund mandatory works, although purchasing rolling stock will provide no advantage in the concession award.
Keyphrase: Belgrano Cargas concession
Keywords: Belgrano Cargas y Logística;
Meta-title: : 50-Year Rail Tender
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