A North American group operating Mexico's largest railway network is considering a $3 billion investment in Argentina's Belgrano and San Martín freight lines. Journalist Eugenia Muzio disclosed the interest in the privatization process, though the fragmented scheme complicates operations. If realized, it would boost logistics for agriculture, energy, and mining.
Specialized economics journalist Eugenia Muzio revealed on Canal E that GMXT (Grupo México Transportes), a U.S. group managing Mexico's largest railway network, is interested in entering Argentina with a $3 billion investment in the Belgrano and San Martín freight lines.
“They want to invest $3 billion in Belgrano Cargas and San Martín. Both lines have been dismantled by decree for privatization. The government sought to facilitate the process by offering tracks, rolling stock, and workshops separately, but that makes it much more complex,” Muzio explained.
According to the journalist, this fragmented scheme raises operational costs and reduces profitability. “When one has the track, another the wagon, and another the workshop, every operation involves an additional canon. That makes private management almost unviable under current conditions,” she noted.
The group had shown interest months earlier but withdrew due to the government's 'open access' policy, allowing multiple operators to use tracks for a fee. “The idea is that the track belongs to one and other operators can use it by paying a canon. This group didn't like the model because it increases costs and reduces business autonomy. Now they're pushing again to change the conditions and take over the entire system,” Muzio detailed.
Belgrano Cargas and San Martín Cargas operate with chronic losses, requiring state subsidies to maintain productive connectivity and export transport. “The freight railway business is rarely profitable. It generally incurs losses or requires strong state support. The government's interest is in maintaining productive connectivity and ensuring export transport, not so much in direct profits,” she warned.
Given the offer's scale, Muzio considers it likely that the executive will review tender conditions to attract private capital and ease the fiscal burden. “The government is desperate for fresh money and will probably soften conditions to lure investments. But if the bids end up contradicting the decree, it could become judicially challengeable,” she alerted. Other companies, such as a pool of agro-exporters through the Rosario Stock Exchange, are also considering participation, anticipating competition for these strategic assets.
If realized, it would be one of the most significant investments in Argentina's railway sector in decades, enhancing key logistics for agriculture, energy, and mining.