Belgrano RR bidding rules to go on sale

Bidding rules for a project to revamp Argentine railroad Ferocarril Belgrano Cargas will go on sale Friday and be available through August 20, a source connected to the process told BNamericas. Last month, the country's transport department closed the process' consultation phase after the government published a decree in January authorizing the sale of a majority stake in Belgrano to the private sector. The government's move followed the signing of an agreement between the government and rail workers union (Unión Ferroviaria), as well as investment and foreign trade bank BICE, to sell the shares. Regarding the consultation phase, the source said the consultations would have a "moderate" impact on the final bidding rules, without releasing information of the changes, or the number or names of those that submitted consultations. Local press has reported that interested companies would include Aceitera General Deheza, Bunge, Arcor, Cargill, UniRail, Vicentín, CVRD, Nuevo Central Argentino, ALL and Genesee & Wyoming. The winning company would hold a 79% share in the railroad, while the government and railworkers union would hold 1% and 20%, respectively. The share sale is aimed at bringing in a private sector player to revamp and operate the network and reactivate the narrow-gauge line that spans 7,347km in the provinces of Jujuy, Salta, Formosa, Tucumán, Chaco, Catamarca, Santa Fe, Santiago del Estero, Córdoba and Buenos Aires. The rail company has almost 40mn pesos (US$13.3mn) in assets and 28mn pesos in debt. It has 1,500 employees and 120 available engines.