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19/09/2017 0:00 - Agricultural Commodities Market
Infraestruture: Renovation of ‘Belgrano Cargas’ railroad tracks

The national government is carrying out an extensive plan of improvements in the “Belgrano” rail freight transport system. This plan includes the renewal of tracks, locomotives and wagons. All these actions aim to reverse the decay of this crucial railway line that travels across provinces of the north and northwest of Argentina. This article details the renovations in progress and the financing sources for these works. The information comes from the Deputy Secretary of Freight Transport Planning and Logistics, which depends on the Ministry of Transport and ADIF S.E. (Argentine Trains Infrastructure).

The ‘Belgrano Cargas’ railway system travels across provinces of the north and northwest of Argentina. The decay in its infrastructure and management has resulted in a steep drop in transported cargo. For example, in the late 1980s, already into its downturn, it carried about 4 million tons. In 2016, this figure had dropped to 1 million tons.

Even if rates are usually slightly lower than other transport modes, traveling times are much longer and uncertain. Shipping soybean by rail from Salta to Rosario ports can take easily more than a week, whereas by truck this route is carried out between 24 and 36 hours.

This article summarizes some aspects of the ‘Belgrano Cargas’ railway system renovation works as pointed out by Carmen Polo, Deputy Secretary of Freight Transport Planning and Logistics of the Ministry of Transport. This plan aims to improve connectivity with the northern areas of the country, which has been a central objective of current national government.

In addition, we show information from " The transport infrastructure as an engine of growth" by Guillermo Fiad, President of ADIF S.E. and a January 19, 2016 note signed by representatives of the companies ‘Belgrano Cargas y Logística S.A.’ and ‘China Machinery Engineering Corporation’ attached to the Argentine Republic Official Bulletin.

According to Ms. Polo, there are plans to renovate 1,593 kilometers of rails from the ‘Belgrano Cargas’ railway system. This will require 38 months and an estimated investment of US$ 2.9 billion. Financing is expected to come from three parties: CMEC (China Machinery Engineering Corporation), CAF-Latin American Development Bank and the National Treasury.

Which sections are the first to be renewed?

Renovation tasks between the towns of Timbúes and Coronda have already been completed. The financing source corresponds to CAF. The length of this section is about 85 kilometers.

Within the territory of Santa Fe, the second stage of works includes the sections Coronda - Santo Tomé and Laguna Paiva - Estación Naré. The Estación Naré – Santurce segment, with an extension of about 127 kilometers, has been declared as completed. All of the works were also financed by CAF.

The segment that connects Santurce, Santa Fe to Las Breñas, Chaco, covers about 380 Kilometers and is to be financed by an agreement with the CMEC.

The segment between Las Breñas and Pampa del Infierno, in the province of Chaco, accounts for more than 100 kilometers. This section is said to have been completed and was financed by CAF.

In the C12 branch, the following segments are also included in stage I of the agreement with CMEC:

  • Pampa del Infierno to Los Frentones: 26 kilometers’ long.

  • Los Pirpintos to Taco Pozo: 130 kilometers’ long.

  • Taco Pozo to Talavera: already completed.

The stage II of the CMEC-CAF agreement includes the Talavera – Pichanal and Pichanal – Embarcación sections, within the province of Salta. These segments total about 290 kilometers.

Stage III is the next to be tendered, accounting an investment of US $ 195 million. This stage includes:

  • Tucumán – Metán in the C8 branch: 280 kilometers.

  • Metán – Joaquín V. Gonzalez in the C12 branch: 102 kilometers and a total investment of USD 77 million.

  • Metán to El Chalicán in the C/C15 branch: 197 kilometers and a total investment of USD 149 million.

We attach next an info graphic that summarized renovation tasks, which was provided by Ms. Carmen Polo.


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Institutional Video of the Bolsa de Comercio of Rosario (Rosario Board of Trade)

 Rosario Board of Trade

The Rosario Board of Trade is a centennial institution located in Rosario, in the most important agroindustrial zone of Argentina. Throughout its history it has created and boosted transparent, solid and reliable markets: the Grains Physical Market, the Futures Market, the Capital Market, and the Livestock Market.

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Bolsa de Comercio de Rosario Córdoba 1402 - S2000AWV
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Rosario - Santa Fe - Argentina

Oficina Buenos Aires Reconquista 458 piso 7° - C1003ABJ - Cdad. de Buenos Aires.
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