Argentina railway sale may not bring hoped-for gains

Significance The government argues that the company, with a deficit of USD112mn last year, is inefficient and under-exploited. TAC accounts for 38% of rail freight transport and is key for agriculture and mining exports, as it connects producing locations with ports. Impacts The government expects the reprivatisation to bring fresh funds, which will be key for its 2025 financial programme. The sale will help to reduce government spending and sustain the “zero fiscal deficit” that anchors its economic policy framework. Though the open access scheme could encourage competition, it might not prove viable for a relatively small rail network such as TAC. Modernised rail infrastructure could cut transport costs, improving export competitiveness, but private investment may prove insufficient.