Milei looking to privatize freight railroad operator Belgrano Cargas

Freight rail operator Belgrano Cargas is one of the next state-run companies on Argentine President Javier Milei’s list for privatization, as he said it has "an obscene deficit."   

The company, which Milei claims demanded US$112mn in state subsidies last year, currently operates 7,600km of rail lines that will be operated through concessions, "which will now be leased to private entities, while the rails and land will remain the property of the national government," he said in a statement from the presidency. 

The privatization process will be led by Diego Chaher, head of the agency for the transformation of public enterprises, which is part of the ministry of economy. 

"The privatization is aimed at enhancing the competitiveness of freight rail transport, promoting investment in the sector and introducing market-driven principles to the rail industry," Milei said.

"Under state management, Belgrano Cargas operates at an obscene deficit, with an oversized workforce of 4,429 employees and a bloated hierarchical structure that is not aligned with its actual functions," he added.

The president also underscored that national agricultural production increased sixfold over the last 50 years but Belgrano Cargas is still transporting the same tonnage of freight that it did 15 years ago. 

Belgrano Cargas transported 2.75Mt of cargo last year, according to figures from the national transport regulation commission (CNRT).

The government previously privatized the company in 1999, but after years of low investment, failed concessions and deterioration of rail infrastructure, it was eventually renationalized in 2013.

Milei is also targeting a number of other firms for privatization, including Buenos Aires water utility Aysa, airline Aerolineas Argentinas, Banco Nación and energy regulator Enarsa, local media reported earlier this week.