“It is the first company that we are going to begin a privatization process“said the official when answering the questions that the legislators asked him, while defending the measure: “It is deficient, it has a demand for subsidies of 112 million dollars“.
In that sense, he pointed out that “Without the interference of the State, the Belgrano Cargas service will be much more efficient than the current one.”
“When considering the specifications, the main objective will be the improvement of the freight railway system in general, which requires investment in both infrastructure and rolling stock”he expressed.
Thus, the Government reaffirmed what it had confirmed at the end of October through a statement released by the account of Office of the President.
“The company operates 7,600 km of roads that will now be concessioned to private companies, maintaining rails and land as property of the National State.“, indicated the message published on X before Twitter, in which it was also specified that the privatization process will be led by Diego Chaher, head of the Agency for the Transformation of Public Companies, dependent on the Ministry of Economy of the Nation.
“In state hands, Belgrano Cargas is obscenely deficient and has an oversized plant of 4,429 people, in addition to a high hierarchical structure not in accordance with its functions. Last year alone, the National State, that is, all tax payers in Argentina, had to contribute US$112 million for their subsistence.. In the last 50 years, national agricultural production has increased sixfold; however, under state control, Belgrano Cargas has been transporting the same amount of tons for 15 years,” the Government added.
The details of the privatization of Belgrano Loads
At a press conference, the head of the Public Company Transformation Agency, Diego Chaher, remarked that “The State is not an entrepreneur, that is why all State companies are going to open to private capital and will undergo processes to restrict and completely end state participation.”
“The Agency for the Transformation of Public Companies under my charge is a temporary executing unit whose purpose is unified coordination and greater impetus and dynamism to all these processes. Based on the powers granted to this unit through the Decree 764/2024 has the responsibility of promoting comprehensive projects linked to the concession, privatization, closure, merger, restructuring, total or partial sale of the share packages of all public companies and companies“he explained.
In that sense, he explained: “The company operates three lines: for each one we are going to implement seven differentiated concession processes. One for the road, with the right to toll collection and which will include the transfer of the affected employees; two locomotives that will encourage competition that includes their respective drivers; two of wagons; and two workshops that include associated employees.
“This way, All tracks will be concessioned to the private sector, allowing the volume of cargo transported to triple as the number of trains and their frequencies will increase.. The proposed scheme is for the concession of open access infrastructure, meaning that the concessionaire will have the obligation to allow passage to all operators who want to transport cargo along these routes, avoiding monopolistic behavior. The lands and roads continue to be property of the National State“, he stated.
Source: Ambito
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