Argentina plans to revamp its railway network to boost grain and mining exports. The Belgrano Cargas network tender aims to cut freight costs and expand production of soybeans, corn, copper, and lithium. President Milei’s privatization plan seeks to attract investment and improve state-owned enterprises struggling after economic crises.

The neglected railway system transports less cargo today than in 1970, despite a six-fold increase in agricultural production. The Belgrano Cargas network moves 7.5 million tons of cargo annually, 60% being agricultural products. Slow trains on deteriorating tracks face theft and derailments, highlighting the need for modernization.

Improving railways is crucial to Argentina’s goal of increasing annual exports by $100 billion. Bidders like Grupo México Transportes and agricultural consortiums aim to invest billions in upgrades. Lowering transport costs from farms to ports, like Rosario, could make Argentina more competitive in global markets, benefiting both agriculture and mining industries.

Lower freight costs could expand the agricultural frontier in Argentina’s north, where half of production occurs more than 300 kilometers from key ports. Transporting goods by rail costs less than by truck, making it a more cost-effective solution for farms further from ports. The mining sector, including lithium and copper projects, could also benefit from improved logistics solutions.

Read more at Yahoo Finance: Argentina’s railway privatization dreams face long haul ahead