Argentina Railway Privatization Path

Research evidence excerpt

Argentina Railway Privatization Path

FoundationMDuring its 2Q26 earnings call, management mentioned the Argentina railway

networks they are considering may require ~$3bn in capex to improve them to

modern operating standards and that such investment may take 5 to 8 years to

execute. Grupo Mexico had previously confirmed its interest in entering the railway

sector in Argentina (here), but was clear the company doesn't favor the open access

model, highlighting such a system has historically resulted in unprofitable

operations. That said, given Argentina is proposing a flexible open access format, we

see a way in which the company may win all components (infrastructure, rolling

stock and workshops) in one or more of the three networks being privatized.

According to local media reports, Bunge, Louis Dreyfus Company, Cargill, Asociación

de Cooperativas Argentinas (ACA), and Aceitera General Deheza (AGD) are

coordinating a joint bid for the BCyL concessions. The (unconfirmed) consortium’s

reported objective is to secure and enhance the reliability of freight logistics while

strengthening rail connections to export ports serving Argentina’s agricultural

sector.

Grupo Roggio (a major Argentine holding company specializing in infrastructure and

public services) and Rio Tinto (covered by Alain Gabriel) have also appeared as

interested parties in press reports, but neither company has commented on the

matter.

Belgrano — the agricultural backbone with a mining option. The line

encompasses ~4,000km of operational railways that serve Argentina’s central and

northern provinces and it moved ~2.7mt in 2024. Agricultural products represent

~82% of its current cargo, as it connects the grain and sugar corridors with the

Paraná River ports in Santa Fe and Greater Rosario.