The Argentine government launched the tender for the privatization of the company Belgrano Cargas y Logística (BCyL) which includes the General Belgrano, General San Martín lines – both of interest to Grupo México Transportes (GMXT) – and General Urquiza, which will be concessioned for 50 years .
The document specified that the rolling stock, its surrounding properties and the use of the workshops will also be under concession.
The concession will be granted under an open access regime, with investment plans and the possibility of accessing the benefits of the Incentive Regime for Large Investments (RIGI) for those who win said railway infrastructure.
“The goal is to incorporate private capital and management capacity to recover an infrastructure that for decades accumulated deterioration, lack of maintenance and insufficient investment, despite the growing resources allocated by the National State,” he stated.
He recalled that at the beginning of the current administration, BCyL presented a critical operational and financial situation, since technical reports indicated significant economic losses for the company , coupled with a significant deterioration of the infrastructure, a high number of derailments, lack of cyclical maintenance and a failure of between 20% and 40% of the scheduled maintenance of the traction fleet during 2023.
Faced with this situation, the new model seeks to have the private sector contribute the capital and experience , and assume the entrepreneurial risk necessary to recover and develop the system, while the National State maintains its functions of regulation, oversight and control.
The open access scheme for railway infrastructure will allow the participation of different operators under objective and non-discriminatory conditions. It also includes mandatory works that must be carried out during the first five years of the concessions, along with optional works that bidders may commit to and which will be considered during the awarding process.
The 50-year timeframe will create the necessary conditions for large-scale, long-recovery-period railway investments , providing predictability for the development of new infrastructure and the incorporation of private capital.
In turn, the long-term horizon will allow for monitoring the maturation of new loads and will ensure that the concessionaire has incentives to maintain and renew the network throughout the term of the contract.
The railway network of more than seven thousand kilometers to be concessioned directly impacts 16 provinces: CABA, Buenos Aires, Córdoba, Entre Ríos, Corrientes, Misiones, Chaco, Santa Fe, Santiago del Estero, Tucumán, Salta, Jujuy, Mendoza, San Juan, San Luis and Catamarca.
The planned interventions include works to eliminate the railway bottleneck in the city of Santa Fe and recover the sugar branch of the Belgrano Line; rehabilitate the capacity, reliability and regularity of the main corridor of the San Martín Line; and recover the trunk branch of the Urquiza Line.
Argentina’s Ministry of Economy specified that the deadline and time for consultations on the bidding documentation will be until October 28, and the submission and opening of bids will be on November 11 of this year.
The winner of the tender will have to carry out the mandatory works within the first five years from the date of taking possession.
As well as the optional and additional works authorized to which it has committed in its offer within the agreed period, which may not exceed 15 years.
It is worth remembering that in 2025, GMXT confirmed its interest in participating in the bidding process for the modernization and operation of a railway network in Argentina .
According to reports from Argentine media, at that time, Bernardo Ayala, CEO of GMXT USA, had confirmed the above after a meeting with journalists, where he stated “that it is a unique opportunity to participate in a process similar to the one carried out in Mexico in 1998.”
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