Argentina rail freight privatisation has suffered a setback after Grupo México withdrew from the process. The company was among the few potential bidders from outside the country. Its exit leaves new questions over operating concessions. It also leaves questions over the planned sale of state-owned rolling stock to future operators. This is reported by the railway transport news portal Railway Supply.

Argentina rail freight plan faces Grupo México exit
Photo: Wikimedia Commons/Government of Argentina

President Javier Milei’s administration is seeking to privatise Belgrano Freight and Logistics. The company operates as Argentinian Trains Freight (TAC). Also, it manages the Belgrano, San Martín and Urquiza networks. Together, those networks total almost 8000km. The plan is part of a broader effort. That effort is aimed at reducing state involvement and attracting private investment.

Grupo México withdrawal raises concession questions

Grupo México already has a major role in rail freight through Ferromex and Ferrosur. Those businesses are two of Mexico’s three main freight concessions. In addition, it had proposed investing up to $US 3bn over five years to modernise Argentina’s freight rail network.

Meanwhile, local media reports say the Mexican group has now left the process. The company had raised concerns about the proposed concession structure. Also, it objected to what it viewed as preferential treatment for bidders from within Argentina.

The privatisation model has also generated debate. The debate covers infrastructure renewals on the Belgrano, San Martín and Urquiza networks. They are expected to rely largely on public funding. That reliance is expected to continue after operations are handed to private concessionaires. The sale covers TAC’s locomotive and wagon fleet. Under government Decree 282/2026, the proceeds will go into a trust fund. The trust fund will finance this work. Still, the government aims to complete TAC privatisation before the end of this year.

Ferroexpreso Pampeano concession extended

Separately, the government has extended one freight concession currently in private hands. It is one of Argentina’s three such concessions. The extension covers the 5100km Ferroexpreso Pampeano (Fepsa) network. The network serves Buenos Aires, La Pampa and Santa Fe provinces. It is key to grain exports through the ports of Bahía Blanca and Rosario.

Techint has held the concession since the former Argentinian Railways was privatised in 1991. More recently, the network had been operated under an agreement that expired on April 30. Local media reports say the government chose not to transfer operations immediately to TAC. Instead, it kept the current operator in place while a new concession framework is prepared.

The decision came amid tensions between the Milei administration and Techint president Paolo Rocca. The tensions concerned industrial policy and tariffs. At the same time, the extension is seen as a pragmatic move. The aim is to avoid disruption to freight flows.

“The objective is to guarantee continuity of service while the new bidding process is prepared,” the government says. Fepsa must also keep meeting its obligations during the interim period. These cover infrastructure maintenance and operational investment.

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