Belgrano Cargas

Belgrano Cargas was an Argentine freight railway company created in 1999 to operate freight services on the Ferrocarril Belgrano network under a long-term concession. The company emerged from Argentina's railway privatisation programme of the 1990s, during which the government transferred operation of several railway systems to private or mixed concessionaires while retaining ownership of the infrastructure. Its concession covered the extensive metre-gauge network associated with the General Belgrano Railway, a system historically developed from the Central Northern and Province of Santa Fe railways and incorporated into the national railway system after the 1948 railway nationalisation. The operating network extended for approximately 10,841 kilometres and served a broad swath of northern, central and western Argentina. It crossed or reached the provinces of Buenos Aires, Santa Fe, Córdoba, Mendoza, Santiago del Estero, San Juan, La Rioja, Catamarca, Tucumán, Chaco, Formosa, Salta and Jujuy. Through connections, the wider system also reached neighbouring countries including Bolivia, Brazil, Chile, Paraguay and Uruguay. The network was particularly significant for moving agricultural and industrial commodities from inland production areas toward domestic markets, ports and cross-border connections, although its precise freight mix and commercial performance varied over time. Belgrano Cargas S.A. was established on 16 November 1999. Unión Ferroviaria, Argentina's railway workers' union, held 51 percent of the operating company, while the Laguna Paiva industrial cooperative held 48 percent. The Argentine government retained a 1 percent golden share and the right to appoint one director. The arrangement was politically and economically difficult from the outset. The railway inherited serious infrastructure and equipment problems, and the union argued that the government had not supplied sufficient investment to restore the line. At the same time, the company became associated with controversy over the handling of funds intended for railway operations. Freight volumes declined sharply during the concession. The network reportedly carried about 3.29 million tonnes in 1998, before the concession began, but annual traffic had fallen to approximately 500,000 tonnes by 2006. During the presidency of Néstor Kirchner, the government attempted to attract new private investment through tenders, but two processes failed because suitable investors did not commit. A proposed investment consortium involving the Chinese company Shima and entrepreneur Franco Macri later withdrew after the government required the participation of other railway-related private groups, including Emepa and Grupo Roggio, alongside Unión Ferroviaria and other transport unions. In 2008, the Argentine government ended Belgrano Cargas S.A.'s concession to operate the Belgrano Railway freight services. The company therefore ceased to be the principal operator of the network, although the name continued to appear in public and media discussions of Argentine freight rail. In May 2013, the government created Belgrano Cargas y Logística by national decree to assume operation of the former Ferrocarril Belgrano freight services. That company subsequently took over selected freight operations on the Urquiza, San Martín and Sarmiento railways as well. The later operator became associated with the modern Trenes Argentinos Cargas system. The Belgrano Cargas name is sometimes used imprecisely to describe Argentina's freight railway network as a whole. Strictly, however, the historical company operated the Belgrano Railway freight concession, while Argentina's broader freight system also included other railway networks. Belgrano Cargas is therefore best understood as a former railway operating company and transport brand rather than as the name of the entire national freight network.

Belgrano Cargas was created during Argentina's railway privatisation programme of the 1990s. The company received a concession to operate freight services on the Ferrocarril Belgrano network, a large metre-gauge system historically assembled from the Central Northern and Province of Santa Fe railways and incorporated into the national railway system after the 1948 nationalisation. The concession was granted on 16 November 1999 to Belgrano Cargas S.A. The ownership structure reflected the political compromises surrounding the concession. Unión Ferroviaria held 51 percent, Laguna Paiva held 48 percent, and the Argentine government retained a 1 percent golden share together with the right to appoint one director. The company inherited a railway system in poor condition. Union representatives maintained that inadequate public investment had left the infrastructure and rolling stock unable to support a viable freight business. The company was also subject to suspicions concerning the management of funds allocated for railway operations. Belgrano Cargas operated an approximately 10,841-kilometre metre-gauge network through a large number of Argentine provinces, including Buenos Aires, Santa Fe, Córdoba, Mendoza, Santiago del Estero, San Juan, La Rioja, Catamarca, Tucumán, Chaco, Formosa, Salta and Jujuy. The system's international reach connected with railway corridors toward Bolivia, Brazil, Chile, Paraguay and Uruguay. In commercial terms, the network was intended to provide freight access for agricultural and industrial regions that were distant from Argentina's principal ports and consumption centres. The concession did not restore the network's previous traffic levels. Freight volume was reported at roughly 3.29 million tonnes in 1998, before the concession, but had fallen to about 500,000 tonnes by 2006. Attempts by the government of President Néstor Kirchner to find a replacement or recapitalised private operator produced two unsuccessful tenders. A proposed consortium involving the Chinese company Shima and entrepreneur Franco Macri offered an investment plan valued at approximately AR$1.4 billion, but it withdrew after the government required other private railway groups and railway unions to participate in the operating structure. In 2008, the government terminated the Belgrano Cargas S.A. concession. A new state operator, Belgrano Cargas y Logística, was created by national decree in May 2013 to take over the former Belgrano freight services. It later assumed certain services on the Urquiza, San Martín and Sarmiento railways, making it broader in scope than the historical Belgrano Cargas concession. The later operation became associated with Trenes Argentinos Cargas. The historical Belgrano Cargas company should not be confused with Argentina's entire freight railway system. Government and media usage has sometimes applied the name Belgrano Cargas to the wider national freight network, even though that network includes several railway systems beyond the General Belgrano Railway.

• 2013

  Belgrano Cargas y Logística replaces the former operator

  [1]Belgrano Cargasen.wikipedia.org

  A national decree established a successor state operator for the Belgrano freight services and later expanded its remit to selected services on other Argentine railways.

• 2008

  Concession is terminated

  [1]Belgrano Cargasen.wikipedia.org

  The Argentine government ended Belgrano Cargas S.A.'s concession to operate the Belgrano Railway freight services.

• 2006

  Reported annual freight volume falls to about 500,000 tonnes

  [1]Belgrano Cargasen.wikipedia.org

  Freight traffic was reported to have fallen substantially amid deteriorating infrastructure, limited investment and operational difficulties.

• 1999

  Belgrano Cargas S.A. receives operating concession

  [1]Belgrano Cargasen.wikipedia.org

  On 16 November, Belgrano Cargas S.A. was formed by Unión Ferroviaria and Laguna Paiva to operate the Ferrocarril Belgrano freight network under a long-term concession.

• 1998

  Pre-concession freight traffic reaches reported peak

  [1]Belgrano Cargasen.wikipedia.org

  The network reportedly handled approximately 3.29 million tonnes of freight in the year before Belgrano Cargas S.A. was established.

• 1948

  Belgrano Railway becomes part of the nationalised railway system

  [1]Belgrano Cargasen.wikipedia.org

  The railway network historically associated with the later Belgrano Cargas concession became part of Argentina's national railway system during the country's railway nationalisation.

A national freight railway operator focused on connecting inland Argentine production regions with markets, ports and neighbouring countries through the extensive metre-gauge Belgrano Railway network.

• Rail freight · 1999

  Ferrocarril Belgrano freight services

  The company's principal offering was freight transportation over the approximately 10,841-kilometre metre-gauge Belgrano Railway network. The system served numerous provinces across northern, central and western Argentina and provided rail connections toward neighbouring countries. Its intended role was to move bulk and general freight from inland agricultural and industrial areas to domestic destinations, ports and interchange points.

• 1999

  Controversy over concession finances and railway investment

  The company became associated with suspicions concerning the handling of funds received for operations. Unión Ferroviaria disputed criticism by arguing that the government had failed to provide sufficient investment to reactivate a railway network already in critical condition.

  Source

Read more

• 2013

  Create a successor state freight operatorStrategy

  Background

  After the previous concession had ended, the government needed an operator for the Belgrano freight services and sought to consolidate additional freight railway operations.

  Action taken

  The government established Belgrano Cargas y Logística by national decree and transferred the former Belgrano freight services to it. The company also later assumed selected services on the Urquiza, San Martín and Sarmiento railways.

  Aftermath

  The successor's broader remit contributed to the later association of the Belgrano Cargas name with Argentina's wider freight railway system.

  Source

• 2008

  Terminate the Belgrano Cargas operating concessionStrategy

  Background

  The concession operated amid deteriorating infrastructure, weak freight volumes and unsuccessful attempts to attract a replacement private investor.

  Action taken

  The Argentine government ended Belgrano Cargas S.A.'s concession to operate Ferrocarril Belgrano freight services.

  Aftermath

  The former operator was eventually succeeded by Belgrano Cargas y Logística, a state-created company established in 2013.

  Source

• 2013

  Belgrano Cargas y Logística is established[1]Belgrano Cargasen.wikipedia.org

  Other

  A national decree created Belgrano Cargas y Logística to assume the former Belgrano freight services and later selected operations on the Urquiza, San Martín and Sarmiento railways.

• 2008

  Government terminates Belgrano Cargas concession[1]Belgrano Cargasen.wikipedia.org

  Regulation · Other

  The Argentine government ended Belgrano Cargas S.A.'s concession to operate freight services on the Ferrocarril Belgrano network.

• 2006

  Freight volumes fall sharply on the Belgrano network[1]Belgrano Cargasen.wikipedia.org

  Other

  Reported annual freight traffic had declined to roughly 500,000 tonnes, compared with approximately 3.29 million tonnes in 1998, amid infrastructure and investment problems.

• 1999

  Belgrano Cargas concession is created[1]Belgrano Cargasen.wikipedia.org

  Other

  Belgrano Cargas S.A. was formed to operate the Ferrocarril Belgrano freight network under a 30-year concession granted during Argentina's railway privatisation programme.

1. 1Belgrano Cargasen.wikipedia.org