Key facts
- Grupo Mexico Transportes USA and Wabtec will jointly bid for Argentina's state-run freight operator Belgrano Cargas y Logistica.
- The privatization is part of President Javier Milei's initiative to transfer state-owned companies to private ownership.
- Tender documents for Belgrano Cargas y Logistica are expected to be published soon.
- The company operates three major freight lines crucial for transporting agricultural products and derivatives.
- The privatization aims to enhance the movement of goods, particularly grains, to export ports.
Mexico's Grupo Mexico Transportes USA (GMXT) and U.S. rail technology firm Wabtec have agreed to jointly bid for Argentina's state-owned freight operator, Belgrano Cargas y Logistica (BCYL). This move is part of President Javier Milei's broader agenda to privatize state-run entities.
Argentina is set to release the tender documents for BCYL in the coming days. The company manages the country's three largest freight train lines, which are vital for transporting approximately 7.5 million tons of produce annually, with 60% being agricultural products and their derivatives. The privatization initiative is intended to improve the efficiency of transporting goods, such as grains, from the country's northern and western regions to key export hubs in the Rosario area.
Several other entities have also indicated interest in bidding for BCYL, including mining company Rio Tinto and an agricultural consortium comprising Bunge, Cargill, Louis Dreyfus Company, Asociacion de Cooperativas Argentinas, and Aceitera General Deheza.